Ekurhuleni Report Shows Serious Financial and Service Delivery Pressure

The Ekurhuleni Metro’s fourth quarter performance report for April to the end of June paints a picture of a metro under mounting pressure where poor financial management and performance are directly affecting service delivery.

The following is clearly evident in the report:

• The trade payables-to-cash ratio (a measure of liquidity and financial health) was only 20,45% compared to a target of 90%.
• On average, creditors were paid only after 94 days (target: 60 days).
• Eskom creditors of approximately R1,6 billion remain outstanding.

The report further shows that the electricity network has been affected by years of underinvestment, poor maintenance and management problems. The Energy Department achieved only 10 of its 15 targets, while residents are frequently plagued by power outages.

Other departments appear to be affected by similar problems:

• The Housing Company’s rental collection rate was only 49%.
• The Roads and Transport Department achieved only 72,5% of its capital expenditure target of 94%, and reports that its repair and maintenance budget has been exhausted.
• The Service Delivery Coordination Department achieved only two of its six targets.

These figures confirm that the Metro is struggling to collect revenue, pay creditors on time and maintain infrastructure, with residents and businesses bearing the consequences.

The Freedom Front Plus (VF Plus) insisted in the latest council meeting that the relevant oversight committees should follow-up on the reasons for not achieving those targets, and that the departments should come up with turnaround plans, clear timeframes and accountability measures.

Residents are paying a premium for municipal services and have the right to expect a functional Metro, reliable infrastructure and sustainable service delivery.

FF+ Manifesto on Sustainable development: Balancing economic growth with environmental protection.

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