JOHANNESBURG, Gauteng — The Gauteng municipal finances recovery effort is gaining decisive momentum, with Premier Panyaza Lesufi and Cooperative Governance and Traditional Affairs (CoGTA) and Infrastructure Development MEC Jacob Mamabolo outlining a comprehensive, multi-tiered turnaround strategy. While the Emfuleni and Merafong municipalities require urgent intervention due to persistent financial and service delivery challenges, Premier Lesufi emphasized that other municipalities, including the City of Johannesburg, are already showing tangible signs of improvement and financial recovery.
Crackdown on Corruption and Fraud
Addressing governance failures, MEC Mamabolo commended law enforcement agencies for their swift, lawful actions in holding officials accountable. This follows the recent arrest of the Emfuleni fleet manager in connection with a R16 million fraud case. Mamabolo noted that the political killings task team has indicated more arrests are imminent as investigations continue. He issued a strong call to law enforcement authorities to “dig deep” and ensure the full might of the law is unleashed without fear, favor, or prejudice across the province, safeguarding public money, public assets, and the rule of law.
Cooperative Governance Over Imposed Solutions
To address deep-seated structural problems, the provincial government launched a municipal turnaround plan in October 2024, led by Premier Lesufi. MEC Mamabolo stressed that this strategy relies on cooperative governance rather than imposing top-down solutions. Citing Section 154 of the Constitution, he explained that the province prioritizes supportive partnerships over invoking Section 139 interventions as a first resort.
The turnaround approach is built on a three-party “public partnership” model:
1. The provincial government, with heads of departments leading specific work streams.
2. Municipal leadership, including mayors, speakers, and members of mayoral committees (MMCs), supported by municipal officials.
3. The Council for Scientific and Industrial Research (CSIR), which has been brought in to inject expert knowledge, new experience, and fresh dynamics into each work stream.
Tackling Unfunded Budgets and Non-Revenue Water
A major focus of the recovery plan is eliminating the practice of passing unfunded budgets, which MEC Mamabolo described as a failure of ethical leadership that misleads the public and compromises service delivery.
To directly tackle revenue leakage, the province is piloting a technological solution in the City of Johannesburg between now and December to address “non-revenue water”—the loss of both water resources and billing revenue, which currently sees up to 50% of water lost in some areas. The CSIR-backed initiative will deploy wireless sensors across the water distribution network to track flow, pinpoint leakages, and hold specific sections accountable, ensuring targeted and precise infrastructure repairs rather than盲目, scattered efforts.
Interim Audits and Financial Market Confidence
Improving revenue generation and billing integrity is being pursued in collaboration with National Treasury, including the rollout of smart meters and the ring-fencing of utility revenues. To further bolster financial credibility, MEC Mamabolo urged all municipalities to conduct interim audits and submit interim financial statements, rather than waiting for annual cycles.
He highlighted that the City of Johannesburg has already begun this process, with the Auditor-General agreeing to review their interim audits. This proactive approach is designed to build the confidence necessary for the city to borrow in financial markets, with announcements regarding secured funding and its deployment for service delivery expected before December.
MEC Mamabolo cited Mahikeng as a positive example of this governance shift, noting that the city successfully utilized interim audits to resolve asset management issues, thereby avoiding the withdrawal of its equitable share and moving past critical intervention status.
The province maintains that mainstreaming audit culture, enforcing consequence management through municipal public accounts, and sustaining high governance standards year-round are the foundational pillars for a permanent and sustainable Gauteng municipal finances recovery.
