WATCH: Councillors debate metro finances
The metro is said to be functioning with less than 13 days of cash left after honouring all their financial obligations.
Kwatsaduza – With service delivery crumbling in the City of Ekurhuleni, the MMC of Finance Nkululeko Dunga has refuted claims that his department is failing.
He was speaking at the metro’s special council meeting at the OR Tambo Government Precinct on Tuesday.
The urgent motion to ascertain the financial state of the city and improve its financial performance was tabled by the DA last week.
The MMC called the sitting premature as they are still waiting for the first quarter report, which will be tabled in the council meeting next week.
The metro is said to be functioning with less than 13 days of cash left after honouring all their financial obligations.
At the end of June, the city’s cash flow was reported at R438m. The metro is alleged to owe Eskom R1.5m, ERWAT R117m, outsourced contractors R2.5b and Rand Water R174m.
The reasons for high outstanding creditors are low rates collection, insufficient budget and unprecedentedly high deficits.
The National Treasury is said to have also warned the metro against its dire financial position.
For a change, political parties were speaking in one voice demanding that the metro’s finances be remedied urgently.
In a form of protest, ActionSA councillors dressed in all black to “mourn” the metro’s financial woes. Dunga dispelled the report that the metro owes Eskom.
“Eskom on October 3 submitted an invoice that we owe them R1.5b, which is based on the current account that is due on October 28. To make a public statement that we owe on the basis of overdue accounts is wrong and must be corrected.
“The entity should not group us together with the City of Tshwane which is struggling financially,” he added.
The MMC added that they have come up with various ways to improve the metro’s coffers which include #Siyacima manje namhlanje, events, tourism and billboards.
ALSO READ: Langaville Primary School commemorates Breast Cancer Month
Chief of council Jongizizwa Dlabathi said the current expenditure patterns are seemingly uncontrollable, including the skyrocketing bad debt.
“This tells us that the metro is heading towards a deep financial crisis. None of us must attempt to turn a blind eye to this reality of a regressing financial base,” he added.
The DA’s spokesperson for finance Fanyana Nkosi said this represents less than 13 days of cash on hand, meaning that an unforeseen expense or increased spending would cripple the city entirely.
“We are worried about the dire state of the City of Ekurhuleni’s finances. It should come as no surprise that contractors and entities alike are starting to refuse assistance and service delivery to residents.
“Residents will ultimately bear the burden of service delivery failure. One must ask, when will the City of Ekurhuleni pay its bills?” he said.
Nkosi added that all money owed to the city must be collected as a matter of urgency and ploughed back into saving the city from a hapless MMC.
