The Freedom Front Plus (VF Plus) noted with concern the Ekurhuleni Metro’s so-called “special adjustment budget” for the 2024/25 financial year, which was approved in today’s council meeting.
This adjustment budget is not a sign of responsible governance, but rather an emergency response to national and provincial intervention brought on by the Metro’s poor performance, wasteful expenditure and inadequate financial planning.
According to a report by the Auditor-General (AG) for the year ended 30 June 2024, the Metro had to report R397 million in irregular expenditure due to its handling of excessive water and sanitation consumption by indigent households. This error forced the Metro to drastically adjust the budget.
On 25 March this year, following several warnings, the National Treasury (NT) withdrew R154 million in conditional grants from Ekurhuleni. These include:
- R63,1 million from the Urban Settlements Development grant
- R55,6 million from the Informal Settlements Upgrading Partnership grant
- R36 million from the Programme and Project Preparation Support grant
These grants were withdrawn due to underperformance and failure to utilise funds timeously and effectively.
The capital budget for 2024/25 has been reduced from R2,898 billion to R2,786 billion. This reduction undermines essential service delivery projects, particularly in vulnerable communities that depend on housing, informal settlement upgrades and urban development.
The total operating revenue has been slashed from R61,5 billion to R60,2 billion. The largest cutbacks include:
- Sanitation revenue: R800 million less
- Water revenue: R400 million less
This clearly points to issues with revenue collection, weak management controls and flawed budgeting assumptions.
In the Freedom Front Plus’s view, this adjustment budget is not just the correction of a technical error, but a clear sign of structural mismanagement. The ANC/EFF-controlled Ekurhuleni demonstrates a pattern of failures that keeps the Metro stuck in a perpetual state of crisis management.
The Freedom Front Plus demands the following:
- A comprehensive investigation into the cause, and accountability for the R397 million in excessive consumption and irregular expenditure.
- Public disclosure of all project progress reports submitted to the NT so residents know which projects have been delayed or cancelled.
- A plan of action with fixed deadlines as well as improved collection strategies to restore the Metro’s financial credibility.
- Accountability for officials who failed to effectively utilise conditional grants.
Under the current administration, service delivery for the poor is derailed, conditional grants are lost and financial stability is undermined. The Freedom Front Plus will not remain silent, but will keep demanding accountability, transparency and proper governance in Ekurhuleni.
The Freedom Front Plus will not remain silent, but will keep demanding accountability, transparency and proper governance in Ekurhuleni.
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