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City’s state of finance remains in the spotlight

The ANC caucus said they are not convinced enough with the plan to turn around the troubling state of finances.

The Ekurhuleni ANC caucus is not convinced by the financial sustainability plan to turn around the state of Ekurhuleni’s finances.

Service delivery, in-sourcing of security personnel and finances were tabled before the council at its meeting on October 27.

The council received the financial sustainability plan.

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The Quarter One report stated the operational revenue was below the target of R2b and R884m, owed to suppliers, is overdue for 30 days.

The council has cash in hand for 12 days, and revenue collection for the quarter is 93,28%.

“We continue to monitor the state of the city’s finances and commend the 93,28% revenue collection for the quarter.

”We implore the executive to do all within its means to ensure a sustainable culture of payment,” said ANC Ekurhuleni caucus whip, Ald Jongizizwe Dlabathi.

The Council adopted the in-sourcing report, which will see thousands of outsourced security personnel being in-sourced directly into the city’s personnel over a multi-year transitional period.

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The ANC caucus welcomed the outcome of the feasibility study, which they said was enlightening and helpful in sharpening decision-making.

“We accept the recommendations to develop a multi-year funding model and clear the limitations associated with in-sourcing,” said Dlabathi.

He supported the decision by the leader of government business, MMC Nkosindiphile Xhakaza to address these recommendations through the budget processes, with a report provided at the 2023/24 IDP and MTREF,” said Dlabathi.

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ActionSA also said they are pleased with this decision.

“This process will achieve nearly 4 000 security guards in-sourced into the city, increasing their remuneration and benefits while costing the city not more than the R2b spent on over 100 security contracts the city currently has.

“It is imperative that the city must offer contracted workers the dignity of fair pay, stable employment and benefits,” said Siyanda Makhubo, ActionSA Ekurhuleni caucus leader.

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