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Ekurhuleni Owes Creditors Over R7 Billion

Statement by Khathutshelo Rasilingwane MPL – DA Mayoral Candidate for Ekurhuleni:

Service delivery in the City of Ekurhuleni is on the brink of collapse due to the municipality’s dire financial situation. The city owes bulk services providers Eskom and Rand Water millions of rands, while contractors who have provided services to the city remain unpaid. Collectively, a total of R7,373 billion is owed to creditors as of 31 May 2026.

Ekurhuleni is failing to pay creditors on time, affecting the residents who diligently pay their rates and taxes on time and inconveniencing service providers.

This information was revealed in a reply to the Democratic Alliance’s (DA’s) questions tabled in the Gauteng Provincial Legislature (GPL) regarding the state of Ekurhuleni’s finances by the MEC for Finance, Nkululeko Dunga.

According to the MEC, Ekurhuleni owes Eskom R5,758 billion, Rand Water R555 million, other state entities R0,907 million, provincial government departments R293,719 million, municipalities R4,437 million, suppliers of goods and services R91,346 million, and contractors R669,337 million.

See full reply here.

Currently, only R2,017 billion in cash is immediately available in the municipality’s bank accounts. This will not cover even half of the debt currently owed to creditors. Some service providers have been owed payment for more than 120 days.

This is because of corruption, mismanagement, and maladministration of funds under the watch of the Gauteng Premier Panyaza Lesufi’s government. The corruption exposed at the Mandlanga Commission is one reason why residents struggle to access basic services. Had the proper procedures been followed and consequence management implemented, this would not have been the case.

Failing to pay Eskom and Rand Water on time may result in limited services. This means that residents may be subjected to power cuts due to load reduction and have their water supply throttled.

The DA Gauteng will write to the Mayor of Ekurhuleni, Nkosindiphile Xhakaza, to request a meeting with him within seven days regarding the current state of the city’s finances. This will determine whether assistance will be provided to help the municipality pay its creditors on time.

The DA is the only party that will put the needs of the residents in the municipality first by ensuring that creditors are paid on time so that there is no disruption to service delivery. Residents of Ekurhuleni deserve a government committed to paying its creditors within 30 days and ensuring that bulk service providers like Eskom and Rand Water are paid on time. Residents in Ekurhuleni are tired of empty promises; all they want is service delivery now.

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