SEDIBENG. – The latest assessment report by the Gauteng Provincial Treasury confirms that the Emfuleni Local Municipality (ELM) is still failing to fulfil its basic financial and governance obligations.

This was recently revealed to Sedibeng Ster by Gerda Senekal, FF Plus councillor in the ELM. Senekal said this is despite extraordinary government intervention and debt relief measures since June 2023.

“Compliance deteriorated further in the reported period (October to November 2025), from 78% to 76%, seriously jeopardising Emfuleni’s access to further Eskom debt deductions.”

Senekal said that some of Emfuleni’s major failures are:

Eskom debt and maladministration:

Emfuleni only paid R178,5m of a R332,6m bill in October 2025, causing outstanding Eskom debt to climb higher than R1,6b. This is not a technical error; it is a clear sign of financial recklessness and failure to prioritise essential services.

Structural bankruptcy:

The 2025/26 interim budget has officially been declared unfunded, while tariffs for electricity, water and sanitation remain non-cost-reflective, and no tariff reform has been implemented.

Poor revenue collection:

The collection rate for November 2025 stood at a shocking 69%, well below the minimum required 85%. Credit control measures such as water restrictions and prepaid electricity blocking are inconsistently enforced, encouraging a culture of non-payment.

Administrative chaos:

Billing and valuation have been plunged into chaos because the billing system and the Council’s approved general valuation roll do not correspond.

Non-transparent reporting:

Although reports are submitted in terms of the Municipal Finance Management Act (MFMA), critical elements are missing and reporting remains incomplete and non-transparent.

Misuse of ring-fenced funds:

Revenue from water and electricity is not used to pay Eskom and Rand Water first, as required, which is in direct contravention of debt relief conditions. The first year’s debt deduction was approved, but remains unprocessed due to administrative incompetence.

“When all these failures are considered together, it is clear that Emfuleni is shooting itself in the foot. Government support is available, but maladministration keeps undermining it. If urgent remedial action is not taken within 30 days, Emfuleni will be solely to blame for forfeiting further debt relief – with disastrous consequences for service delivery and residents,” Senekal said.

The ELM, responding to the allegations, said that Senekal’s facts are inaccurate.

“These assertions are incorrect, misleading and designed to deceive residents,” said ELM’s Makhosonke Sangweni.

He adds that Senekal regrettably excluded the fact that ELM has signed a Distribution Agency Agreement (DAA) with Eskom, which mandates both entities to work together on electricity revenue collection.

“The DAA agreement is clear that customers must pay for electricity services directly to Eskom and not ELM. Conflicting with the damaging claims in the statement, blaming the municipality for the debt relief measures shortcomings is a fallacy since the electricity services function in totality is now a function of both ELM and Eskom.”

Sangweni adds that it is correct that collection has not been optimal in the municipality due to various bulk infrastructure challenges.

“This has resulted in high water and electricity losses leading to ELM not recovering bulk purchase costs from Rand Water and Eskom, as the municipality sells less than what it purchases in terms of volume. We wish to assure residents that the municipality has processed the write-off. This was done on receipt of the Eskom statement in January; R1,9b has been written off. The amount has already been processed on our Annual Financial Statements (AFS).”

On the matter before the court against the municipality, Sangweni said that they take note of it and prefer not to respond to matters that are sub judice.

“In due course, we shall follow the correct processes and respond accordingly. ELM is working hard to improve service delivery in the area. This is made possible by the aid we get from consumers who pay their accounts. The municipality remains committed to serving its customers diligently and ensuring continued improvements in service.”

The ELM said that it will continue to work with all parties, “In our multiparty constitutional democracy, we expect all of those who have representation in council to hold us accountable on a factual basis, not propaganda.”