Gauteng Finance and Economic Development MEC Lebogang Maile has denied reports that the province faces potential bankruptcy.
In a post on X, Maile reassured residents that Gauteng’s financial position remains secure.
“Gauteng Provincial Government will never be bankrupt. Our finances are well managed, our books are in order,” he stated on Sunday.
The MEC announced that a media briefing will be held on Tuesday to offer further clarification.
“Any attempt to cast aspersions on the integrity of our government are just malicious,” Maile added.
His remarks come despite his warning in September that the province could be “R6 billion in the red” by June 2025 without urgent financial caution.
This followed R15 billion in budget cuts imposed on the provincial government.
Maile pointed to the Gauteng Department of Health as the primary driver of the province’s financial troubles.
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The MEC highlighted the department’s persistent non-compliance with supply chain regulations as a critical threat to Gauteng’s overall financial stability, citing corruption as the root cause of the crisis.
Despite these challenges, Maile assured the public that the provincial government was taking every possible measure to steer clear of bankruptcy.
Political analyst Levy Ndou told The Citizen that the significant strain on the health department’s budget could force local government to shift its priorities.
Ndou noted that national leadership has consistently highlighted health as a key focus area in recent years, emphasising the need for substantial investment in the sector.
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Ndou pointed out that improving the healthcare system would demand considerable financial resources.
He stressed the importance of ensuring the health sector was adequately supported, while maintaining a balanced allocation of funds across other essential government departments.
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