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Ekurhuleni’s R10.4 Billion Creditors Crisis and Allegations of Falsified Invoice Dates

The Freedom Front Plus (VF Plus) is deeply concerned about escalating financial mismanagement in the Ekurhuleni Metro, particularly regarding the R10,4 billion owed to creditors, the chaotic payment system and shocking allegations that officials have reportedly asked service providers to alter invoice dates to conceal overdue accounts. According to the Department of Finance’s report for […]

The post Freedom Front Plus demands answers regarding Ekurhuleni’s R10,4 creditors crisis and allegations of falsified invoice dates appeared first on Freedom Front Plus.

The Freedom Front Plus (VF Plus) is deeply concerned about escalating financial mismanagement in the Ekurhuleni Metro, particularly regarding the R10,4 billion owed to creditors, the chaotic payment system and shocking allegations that officials have reportedly asked service providers to alter invoice dates to conceal overdue accounts.

According to the Department of Finance’s report for the first quarter (July to September), invoices dating as far back as 2021 have not been paid, while 2025 invoices have already been settled.

Some examples of major outstanding amounts include R5,36 billion owed to Eskom and R1,01 billion to the Ekurhuleni Water Care Company (ERWAT), with millions more owed to small and medium service providers.

During a joint oversight committee meeting of the Finance and Infrastructure Committees, several stakeholders present indicated that officials had requested them to change the dates on submitted invoices.

The oversight committee immediately brought these allegations to the attention of the Department of Finance and requested an explanation in writing.

To date, the Department has neither confirmed nor denied the claims, and the oversight committee still awaits a comprehensive, evidence-based response.

When a metro selectively pays its debts and then allegedly issues instructions to manipulate invoices, it is no longer just an administrative problem – the Metro’s ethics and integrity are called into question.

The key issues highlighted in the report are:

  • The absence of transparent or fair criteria for determining who is paid first.
  • Service providers having to wait more than four years for payment.
  • Officials in the Department of Finance allegedly requesting that invoice dates be altered to hide the extent of late and overdue payments.
  • Small and emerging contractors are the hardest hit, consequently, they refuse to complete contracts due to non-payment.
  • A sharp increase in litigation and settlement orders against the Metro is to be expected, posing a financial risk.

All this points to financial disorder, a lack of oversight and complete disregard for the Municipal Finance Management Act (MFMA).

The Freedom Front Plus demands that the Metro immediately disclose a complete list of all outstanding amounts, due dates and the current payment sequence.

The party also sent written questions to the Mayoral Committee Member for Finance, Jongizizwe Dlabathi, requesting that officials be held accountable.

Residents and local businesses deserve a metro that is honest, transparent and accountable – not one that covers up invoices, alters dates and drives people into bankruptcy.

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