Ekurhuleni shows financial recovery and improved service delivery, says mayor

Ekurhuleni’s Executive Mayor Nkosindiphile Xhakaza said the city has found its footing after a period of turbulence, with the administration announcing significant progress in stabilising its finances, restoring service delivery, and winning back community trust.

Speaking at a media briefing last week, Xhakaza said political stability has provided the foundation for the city’s mandate of “a responsive city working with agility to restore service delivery to the people.”

One of the most serious challenges facing the administration on taking office was a R2.1b revenue shortfall in the Energy Department, created after meter reading functions were abruptly moved to the ICT Department, leading to widespread billing mismanagement.

ALSO READ: Ekurhuleni mayor highlights service improvements

Xhakaza said the city introduced a turnaround plan built on integrity, accountability and recovery.

Billing accuracy has since improved from 84% to 97%, disciplinary steps have been taken against senior officials, and recovery efforts have already secured R365m, with nearly R1.4b billed and a further R761m being processed.
A campaign is underway to collect the remaining R1b.

The mayor added that the city’s overall financial position has strengthened.

Cash on hand has risen from 11 days to 21 days, bank balances have more than doubled from R615m to R1.2b, and investment balances have grown from R245m to R672m.

These improvements, he said, have helped improve Ekurhuleni’s credit rating and restored investor confidence.
While financial recovery was a priority, Xhakaza stressed that service delivery has not been neglected.

He said 99% of the capital budget was spent in the past year, resulting in visible improvements across communities.

ALSO READ: Mayor takes firm stand on EMPD strike and vows for order amid union dispute

In energy, new high-mast lights and streetlights have been installed and thousands of electricity connections rolled out.

In transport, the Bus Rapid Transit system linking Thembisa and OR Tambo International Airport is nearing completion, while major roads have been rehabilitated in Kempton Park, Benoni and Duduza.

Community safety has been bolstered through police operations, additional EMPD vehicles and the near completion of new fire and police stations.

In water and sanitation, construction is underway on reservoirs and pump stations, sewer systems are being upgraded, and steps are being taken to register more than 100 000 unmetered stands.

Waste collection now covers 752 000 households and has been extended to informal settlements, while the Clean Your Kasi campaign has created hundreds of jobs.

ALSO READ: Ekurhuleni mayor and speaker survive no-confidence vote

Grass cutting and wetland rehabilitation have resumed, all burial requests are being met on time, and housing units and serviced stands have been delivered.

The city has also raised its repairs and maintenance budget by R400m, bringing the total to R3.1b.

Funding is being directed to fix streetlights, replace stolen cables, repair potholes, and address leaks and sewer blockages.

Asked about incomplete projects, including the SAAME building in Germiston, which received an additional R39m allocation, Xhakaza said the facility is in its final stages and is expected to be completed by September.

He said it would serve as a central hub for residents and improve service efficiency once operational.