Note to Editors: Please find an English soundbite here
The Democratic Alliance (DA) in the City of Ekurhuleni demands that the MMC for Finance, Ald. Jongizizwe Dlabathi make payment arrangements as a matter of urgency with contractors and service providers – many of whom have not been paid for more than 60 days.
This has led to many facing cashflow problems and the possibility of financial ruin because of the callous behaviour the ANC-EFF-ActionSA coalition running the city.
Several companies have been unable to pay their staff who subsequently cannot provide for their families.
Projects have been stopped in the city, and in many areas, service has come to a standstill.
As of 31 March 2025, trade creditors were owed R2.18 billion (this excludes the R4.182 billion owed to Eskom and Rand Water).
The city only had R5.4 billion available with which to pay Eskom, Rand Water and its monthly salary bill of R920 million which left only R300 million to pay day-to-day activities.
Despite a Council-approved revenue enhancement strategy adopted earlier this year, it is evident that this has been reduced to a fancy slogan with no tangible outcomes achieved to improve debt collection, attend to water leaks, electricity losses and cutting unnecessary expenditure.
The DA demands that the MMC take the following steps to do due diligence to the service providers on the city’s books:
- Communicate a payment plan with all contractors and service providers with invoices older than 45 days;
- Make pro-rata payments to all contractors on a weekly basis using the cash available at the end of the week;
- Streamline the use of in-house resources to reduce the outsourcing of key service delivery functions; and
- Provide a plan on drastic cost cutting and containment measures to stabilize the City’s financial position and cash on hand.
Businesses and families face financial ruin due at the hands of the ANC-EFF-ActionSA government.
Given the sky-rocketing rate of unemployment, the cost-of-living crisis and the inability of the city to adhere to its contractual obligations, the DA will continue to fight for the rights of service providers who have been financially abuse and residents who have been short-changed by this failed and uncaring coalition.