Home South Africa News Gauteng Ekurhuleni Budget Rejection Threatens Service Delivery, ANC Warns

Ekurhuleni Budget Rejection Threatens Service Delivery, ANC Warns

Ekurhuleni Budget Rejection Threatens Service Delivery, ANC Warns
African National Congress (ANC): Ekurhuleni Budget Rejection Threatens Service Delivery, ANC Warns. Image for illustration purposes only, generated with AI.

The African National Congress in Ekurhuleni has condemned the EFF, Democratic Alliance, and Freedom Front Plus for voting against the municipality’s R71 billion budget, warning that the decision jeopardizes essential services and municipal operations.

Jongizizwe Dlabathi, Ekurhuleni’s Finance Member of the Mayoral Committee and ANC regional secretary, stated that the opposition parties’ rejection lacked objective or substantive justification. “All I can say is that it is politics at play,” Dlabathi said, urging political leaders to set aside egos and prioritize community interests, particularly in an election year.

According to Dlabathi, the budget underwent broad consultation and aligns with local government mandates. It has been confirmed as fully funded by National Treasury, with proposed tariffs kept within affordable limits despite exceeding the current 4.0% CPI. An additional R800 million has been allocated to repairs and maintenance, while resources are directed toward strengthening internal capacity, including personnel, equipment, and vehicles.

Dlabathi cautioned that while the approved budget allows operations to continue through June, failure to pass a new budget by July 1, 2026, would prevent the city from spending, potentially disrupting water, sanitation, and electricity services. The budget also includes provisions for wage agreements reached through the South African Local Government Bargaining Council, meaning delays could affect municipal workers’ payments.

Regarding opposition concerns, Dlabathi addressed specific objections. The Freedom Front Plus questioned the realism of the 90% revenue collection projection; Dlabathi responded that National Treasury norms require budgeting from 90% collection upward. He noted that three of four issues raised by the Democratic Alliance have been addressed in amended documentation, including provisions for water services development priorities they championed. Tensions with the EFF, he explained, stem partly from a restructuring that reduced their MMC representation from four to two positions—a proposal they declined.

Dlabathi also provided an update on the R2 billion cybercrime scheme uncovered earlier this year, in which officials allegedly manipulated municipal systems to reduce or erase debts owed by companies. He confirmed that the fraud was identified through quarterly revenue reviews, leading to an investigation that has reconstructed approximately 1,900 accounts and recovered R819 million to date. Internal financial controls have been strengthened with tighter access protocols and audit trails. One official has been arrested, and Dlabathi intends to refer the matter to a government special investigation unit for further action on criminal and corrupt activities.

On political dynamics, Dlabathi clarified that his brief resignation earlier this year was unrelated to the EFF but involved internal ANC matters. He emphasized that the ANC remains open to collaborating with the EFF, provided representation is proportional—citing the disparity between the ANC’s 78 wards and the EFF’s 31 in Ekurhuleni—and that all parties commit to coordinated, community-focused governance.

“We hold no issues to work with the EFF provided that we work in a manner that is fair and proportional representation,” Dlabathi stated, adding that each sphere of government should engage parties based on local merits. He concluded by reiterating the urgent need for all parties to prioritize service delivery and the well-being of Ekurhuleni’s residents.