Home South Africa News Gauteng Ekurhuleni R70-Billion Budget Secured: Finance MMC Jongizizwe Dlabathi Outlines Rate Cuts and...

Ekurhuleni R70-Billion Budget Secured: Finance MMC Jongizizwe Dlabathi Outlines Rate Cuts and Governance Reforms

Ekurhuleni R70-Billion Budget Secured: Finance MMC Jongizizwe Dlabathi Outlines Rate Cuts and Governance Reforms
Gauteng News; Ekurhuleni R70-Billion Budget Secured: Finance MMC Jongizizwe Dlabathi Outlines Rate Cuts and Governance Reforms. Image for illustration purposes only, generated with AI.

EKURHULENI – The finalized Ekurhuleni R70-billion budget has been officially adopted following four unsuccessful voting attempts, bringing an end to a prolonged political standoff. Finance MMC Jongizizwe Dlabathi confirmed that the African National Congress (ANC) agreed to critical concessions, including a reduction in property rates and the formation of a specialized electricity unit, successfully preventing provincial intervention in the metropolitan municipality.

Averting Provincial Administration
Both the ANC and the Democratic Alliance (DA) have taken credit for resolving the legislative impasse. Prior to the agreement, the DA warned that a provincial takeover would have handed administrative control of the metro to an EFF MEC. Addressing this claim, Dlabathi clarified the constitutional mechanisms at play, noting that any provincial intervention would have fallen under the MEC for Cooperative Governance and Traditional Affairs (CoGTA) rather than the Finance MEC. He emphasized that such a move would have been a Section 154 support intervention aimed at facilitating budget approval, rather than a full administrative takeover.

Tariff Adjustments and Economic Defenses
A central point of negotiation was the property rates hike, which the ANC lowered from an initial 2% to 1.5%—a figure Dlabathi described as one of the most competitive in the nation. When questioned about resident welfare, drawing comparisons to the City of Johannesburg’s R200 charge on electricity meters and rising rates, Dlabathi defended the ANC’s fiscal approach.

He highlighted that the original 2% proposal was already 1.4% below the Consumer Price Index (CPI), which currently sits at approximately 4%. Furthermore, all city-controlled standard tariffs were capped at 3.4%, and a zero-percent increase was applied to sewerage. Dlabathi noted that the 0.5% rate concession granted to the DA only marginally affected the projected budget surplus, adjusting it from R1.5 billion to R1.47 billion. He also asserted that current ANC tariffs remain more favorable and considerate than those implemented by the DA during their tenure in 2021 and 2022.

Essential Services and Fleet Procurement
Addressing concerns regarding luxury expenditures, Dlabathi categorically denied that any non-essential spending was included in the financial plan. He stated that the budget strictly adheres to the ANC’s local government action plan, directing funds exclusively toward core services such as water, electricity, waste management, road maintenance, sanitation, and human settlements.

Consequently, no vehicles will be procured for Members of the Mayoral Committee (MMCs) or senior management. Instead, the fleet budget is allocated to operational capacity, specifically funding 12 new waste compactor trucks and 25 Emergency Management Police Department (EMPD) vehicles to enhance by-law enforcement capabilities.

Madlanga Commission and Consequence Management
The discussion also covered consequence management in light of the ongoing Madlanga Commission, specifically regarding the suspended deputy head of the metro police, Mr. Muanazi. Dlabathi affirmed that the current leadership is strictly adhering to legal processes while closely monitoring the commission’s proceedings.

He confirmed that the suspension of the deputy police chief was supported due to prima facie evidence of misconduct, emphasizing a zero-tolerance stance on maladministration and malice. Dlabathi attributed the systemic issues currently under investigation to the previous non-ANC administration, stating that the current leadership is acting swiftly to rectify these legacy problems. He concluded by affirming that the city will await the commission’s final report before taking further disciplinary steps, reiterating that the newly adopted budget will be executed with strict anti-corruption measures in place.