The Emfuleni Local Municipality is facing a deepening financial crisis after its bank accounts were attached by Rand Water due to an outstanding debt of R1.7 billion. The municipality’s Member of the Mayoral Committee (MMC) for Finance, Councillor Hassan Mosola Mako, admitted to financial mismanagement and revealed that the situation has disrupted critical services, including rental payments for municipal offices.
Accounts Frozen, Services Disrupted
In an interview, Mako confirmed that Rand Water had enforced credit control measures, freezing the municipality’s accounts for two months. This has left Emfuleni unable to pay service providers, leading to the closure of key offices, including the Vanderbijlpark customer care center, due to unpaid rent.
“Our account has been attached for two months now,” Mako said. “We’ve made several requests to access funds to pay critical service providers, but the debt to Rand Water has made it impossible.”
Financial Mismanagement and Low Revenue
Mako acknowledged long-standing financial troubles, citing a 57% unemployment rate in the Vaal region and only 25% of residents paying municipal rates. He admitted that past mismanagement contributed to the crisis, referencing the province’s 2018 decision to place Emfuleni under administration.
“There has been some financial mismanagement,” he said. “We are under a financial recovery plan, but the situation remains challenging.”
Rescue Plans: Special Purpose Vehicle and Debt Relief
To address the crisis, the municipality has proposed a Special Purpose Vehicle (SPV) in partnership with Rand Water, aiming to secure World Bank funding for infrastructure improvements. Mako also highlighted a debt relief program that wrote off R1.9 billion owed to Eskom.
However, questions remain about long-term sustainability. When pressed on whether Emfuleni can become financially independent, Mako pointed to future projects like the Vaal River City development and a planned special economic zone, but admitted recovery will take years.
Corruption and Political Accountability
When asked about corruption, Mako declined to confirm allegations, stating that law enforcement should investigate. Politically, he argued that all council parties—not just the ANC—should be held accountable, as decisions are made collectively.
“Council decisions are taken by all political parties represented,” he said. “All of us should be responsible, not just one party.”
Residents Bear the Brunt
With services deteriorating and debts mounting, Emfuleni’s residents face growing frustration. Critics argue that years of poor governance have led to this crisis, and without urgent intervention, the municipality risks further collapse.
As Rand Water maintains its tough stance, the clock is ticking for Emfuleni to find a viable solution—or face even greater financial paralysis.
