By Johnathan Paoli
The City of Ekurhuleni is facing a mounting financial crisis as unpaid invoices to service providers balloon to R13 billion, leaving businesses on the brink of collapse and threatening widespread service delivery failures across the metro.
Democratic Alliance (DA) Kempvale constituency head Mike Waters has highlighted the ongoing unpaid service providers debt that stands at R13 billion, stressing that businesses are on the brink of collapse with escalating and widespread delivery failures across the metropolitan area.
In a statement on Wednesday, the Waters emphasised that the staggering figure was more than double the R6 billion previously reported by Gauteng Cooperative Governance and Traditional Affairs (COGTA) MEC Mzi Khumalo to the provincial legislature last month.
“R13 billion in unpaid bills is not just a number on a spreadsheet; it means small businesses going under, workers not getting paid, and communities left without services. The current administration has turned Ekurhuleni into a debtor’s prison, the MEC is the warden,” he said.
Waters accused the Ekurhuleni administration, led by the African National Congress (ANC), of violating the Municipal Finance Management Act (MFMA), which compels municipalities to settle accounts within 30 days.
Instead, the city has allowed invoices to pile up, creating what Waters described as a “debtor’s prison” for local businesses.
Waters described the R13 billion debt as more than just a fiscal challenge; but a blow to the economic lifeblood of the metro, with many small and medium-sized enterprises, many of which rely on municipal contracts, being left cash-strapped.
Several are reportedly struggling to meet payroll, service loans, or maintain operations.
The MFMA stipulates strict compliance with financial management rules, particularly regarding timely payment of suppliers, with failure to comply undermining both the law and public trust in municipal governance.
The DA has called for urgent intervention by the Gauteng provincial government.
Waters confirmed that his party will formally write to Khumalo to seek clarity on what measures his department is implementing to assist the metro in stabilising its finances.
In addition, the DA’s Ekurhuleni caucus intends to raise the issue in council chambers to force the city’s leadership to account for the spiralling crisis.
The crisis threatens to deepen political tensions in Gauteng, where metros like Johannesburg, Tshwane and Ekurhuleni have all faced questions about financial stability and governance failures in recent years.
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