Cash-strapped Emfuleni owed over R365 million by employees and Gauteng government departments

Issued by Kingsol Chabalala MPL – DA Emfuleni North Constituency Head
21 Oct 2024 in Press Statements

The Emfuleni Local Municipality (ELM), which is failing dismally to provide adequate service to its residents, is owed over R365 661 943.00 in rates and taxes by Emfuleni Municipality employees, councillors, and Gauteng government departments.

This information was revealed by the Gauteng MEC for Cooperative Governance and Traditional Affairs (COGTA), Jacob Mamabolo, in a written reply to the questions tabled by the Democratic Alliance’s (DA) in the Gauteng Provincial Legislature (GPL).

The breakdown of the R365 661 943.00 owed to the Emfuleni Local Municipality (ELM) as per MEC Mamabolo is as follows:

  • Emfuleni Municipality employees owe R4 410 252,00 in unpaid rates and taxes as of 31 August 2024.
  • Gauteng government departments collectively owe R361 251 691,00 in unpaid rates and taxes as of 31 August 2024.

See the reply here.

According to the Municipal Structures Act, it is illegal for any municipal employee to owe the institution they work for. Section 10 of Schedule 2 of the Act states that “a staff member of a municipality may not be in arrears to the municipality for rates and services for more than three months.” It is therefore unacceptable that employees at the ELM are violating this act and contributing to the collapse of service delivery in this municipality.

Furthermore, Gauteng government departments’ failure to set a good example by ensuring their accounts with the Emfuleni Municipality are in good standing reflects poorly on their internal credit control and leadership.

The DA demands that MEC Mamabolo intervene to ensure that government departments owe the ELM pay immediately. Additionally, the ELM must also ensure that its employees pay their rates and taxes. This money will go a long way in helping Emfuleni municipality deliver services and pay its debt to Eskom, Rand Water, and other debtors.

The municipality cannot be held at ransom by delinquent employees and government departments who are fully aware of its financial woes. Furthermore, DA Councillors will raise this issue in council to ensure that action is taken against employees and those owing municipality.

A DA government would establish internal credit controls to ensure timely payment of rates and taxes by employees, councillors, and government departments. Employees and councillors failing to pay their municipal debts would be taken to task and even have the money deducted from their salaries.

The DA is committed to ensuring that Emfuleni receives all its revenue for rates and taxes to provide quality services to its residents who have not had access to such necessities for a long time.