Gauteng MEC for Economic Development and Finance, Lebogang Maile, has refuted claims of an impending financial collapse of the Gauteng Provincial Government (GPG).
Addressing recent media reports alleging the province faces bankruptcy and a R6 billion shortfall by June 2025, Maile dismissed these assertions as baseless and misleading.
“These claims are not new and have been refuted before. However, we must address them again in the public interest,” said Maile.
“Such reports are founded on erroneous premises that risk creating unnecessary panic among residents and businesses in Gauteng.”
Maile told reporters that Gauteng’s budget of R169 billion is substantial, but its impact hinges on prudent and efficient spending.
“While these assertions are not new and have been refuted before, there is a need to provide a comprehensive response in the public interest. These articles require correction as they are based on an erroneous premise that will only serve to create unnecessary despondency among residents and businesses in the province,” he said.
Maile also highlighted the importance of disciplined spending by departments and entities to ensure that every rand contributes to meaningful progress.
According to Maile, efforts to improve spending efficiency are already underway.
“This includes standardizing pricing for frequently procured items and introducing a comprehensive set of practice notes aimed at reinforcing fiscal discipline, eliminating wastage, improving accountability, and enhancing the province’s ability to meet its development goals. I must reiterate that while the GPG operates under a strained fiscal environment, the province is not facing imminent bankruptcy,” he said.
Maile also called on the media to uphold their responsibility to report truthfully.
“Unfounded claims not only panic residents but also undermine businesses and erode investor confidence at a time when the provincial government is working hard to strengthen revenue streams. We look forward to further engagement with the media on the work of the GPG and the Gauteng Provincial Treasury in particular,” he said.
He pointed out the significance of accurate reporting as the province prepares for the 2025 Budget, which will outline Gauteng’s financial and economic trajectory.
“This is critical for a province that remains the nerve centre of the regional and national economy,” Maile concluded.
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