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Merafong’s Recovery Plan Not on Track

It is evident that Merafong’s mandatory financial recovery plan, which came into effect in June 2024 and is currently in its implementation phase, is failing to improve the financial position of this ANC-controlled Local Municipality. The Municipality’s current collection rate for basic services remains far below the level required to achieve any meaningful financial recovery. […]

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It is evident that Merafong’s mandatory financial recovery plan, which came into effect in June 2024 and is currently in its implementation phase, is failing to improve the financial position of this ANC-controlled Local Municipality.

The Municipality’s current collection rate for basic services remains far below the level required to achieve any meaningful financial recovery.

The collection rate for March 2026 – the final month of the third quarter of the 2025/2026 financial year – stands at 59%, which is eight percentage points lower than in the first month of the financial year.

In respect of water sales, Merafong recorded a loss of 15,05% in March 2026, amounting to nearly R3 million, bringing the cumulative loss for the financial year to over R66 million.

Electricity sales performed significantly worse, with a monthly loss of 53,69% – equating to R24,4 million – and total losses for the financial year nearing R228 million.

Outstanding debt older than 30 days owed to bulk suppliers has continued to escalate, now totalling R1,9 billion to Eskom and R1,5 billion to Rand Water.

In addition to this poor performance, irregular expenditure of R9,8 million has been recorded.

And to crown it all, very little progress has been made with implementing the corrective measures prescribed by the Auditor-General (AG) following its qualified audit for the previous financial year.

Although the financial year is already three quarters underway, only 35 of the AG’s 87 findings have been successfully addressed.

While Merafong residents endure poor service delivery and low water pressure due to restrictive measures linked to outstanding debt, the Municipality keeps dragging its feet instead of taking decisive steps to improve conditions for the people.

Clearly, the ANC should not be allowed to keep driving Merafong over the edge of ruin.

Voters are being presented with a golden opportunity to register and oust the ANC from the Merafong Council at the polls.

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