DA warns Ekurhuleni debt threatens service delivery

Ekurhuleni’s financial woes continue to spark concern among political parties. The DA has warned that service delivery is “hanging by a thread”, while the city insists its finances are being managed responsibly and remain under control.

In a statement released on July 2, DA mayoral candidate Khathutshelo Rasilingwane painted a bleak picture of the metro’s finances, citing figures revealed in the Gauteng Provincial Legislature.

According to a reply by Gauteng Finance MEC Nkululeko Dunga, Ekurhuleni owed creditors a total of R7.373b as of May 31.

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The DA said the debt included R5.758b owed to Eskom and R555m owed to Rand Water.

Millions were also owed to provincial departments, municipalities, contractors and suppliers.

Rasilingwane warned that the city’s available cash of just over R2b was insufficient to cover even half of its obligations, with some service providers allegedly unpaid for more than 120 days.

“The municipality’s inability to pay creditors on time is directly affecting residents who faithfully pay their rates and taxes,” said Rasilingwane.

She attributed the financial strain to alleged corruption, mismanagement and maladministration, referencing findings linked to the Mandlanga Commission and placing responsibility on the provincial government led by Premier Panyaza Lesufi.

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The DA warned that failure to settle bulk service accounts could lead to:
• Load reduction or power interruptions,
• Water supply restrictions, and
• Further deterioration in service delivery.

The party said it would formally request a meeting with Ekurhuleni Executive Mayor Nkosindiphile Xhakaza within seven days to discuss the matter.

City’s response
In response, the City of Ekurhuleni acknowledged that its total creditor balance stood at approximately R8b at the end of May but stressed that the figure required proper context.

According to the city:
• Around 50% of the total amount relates to invoices that are not yet due for payment.
• As of July 23, 2026, the amount owed to Rand Water was R524m, linked to a June invoice that remains within the payment terms.
• The Eskom balance of R5.1 b includes:
• R2.8b in current invoices that are not yet due; and
• R2.2b that forms part of an active payment arrangement.

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The city emphasised that it remains fully compliant with its payment agreement with Eskom, adding that it paid approximately R11 b to creditors during the final quarter of the 2025/26 financial year.

Officials cautioned against conflating current invoices, structured repayment agreements and overdue debt.

“Such financial matters should not be misrepresented for political expedience, as this could undermine public confidence and relationships with key service providers,” said Phakamile Mbengashe, head of department for communications, marketing and tourism.

The city said it remains committed to prudent financial management, honouring its payment commitments and maintaining constructive relationships with Eskom, Rand Water and other creditors while safeguarding the uninterrupted delivery of essential services to residents.