EKURHULENI FINANCES ON BRINK OF COLLAPSE WITH OVER R7 BILLION OWED TO CREDITORS
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JOHANNESBURG, GAUTENG – Service delivery across the City of Ekurhuleni is hanging by a thread as the municipality struggles with severe financial strain, owing a staggering R7.37 billion to creditors as of 31 May 2026.
The financial crisis was exposed in a reply to questions tabled in the Gauteng Provincial Legislature (GPL) by the MEC for Finance, Nkululeko Dunga. The data reveals that the metro owes hundreds of millions to contractors and bulk service providers, while holding only R2.017 billion in immediately available cash reserves—covering less than a third of its outstanding debt.
Detailed Breakdown of Debt
The total liability of R7,373,746,000 owed to state entities, bulk utility suppliers, and private contractors is distributed as follows:
Eskom: R5.758 Billion
Contractors: R669.337 Million
Rand Water: R555 Million
Gauteng Provincial Government Departments: R293.719 Million
Suppliers of Goods & Services: R91.346 Million
Other Municipalities: R4.437 Million
Other State Entities: R907,000
With some service providers waiting over 120 days for settlement, delayed payments threaten to trigger load reduction and water throttling by Eskom and Rand Water, directly impacting rate-paying residents.
DA Demands Action and Emergency Meeting
Attributing the financial crisis to corruption, mismanagement, and lack of consequence management within the provincial government structure, the Democratic Alliance (DA) in Gauteng warned that residents are suffering despite paying their rates and taxes diligently.
The DA announced that it will write to Ekurhuleni Executive Mayor Nkosindiphile Xhakaza requesting an urgent meeting within seven days. The engagement aims to establish an immediate intervention plan to stabilize the city's finances, ensure creditors are paid within the standard 30-day window, and prevent a total breakdown of municipal services.
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