Emfuleni residents in Gauteng have endured years of service delivery breakdowns as the municipality continues to struggle with mounting debt and weak revenue collection.
Chief Financial Officer Mpfareleni Maseanoka acknowledged that structural problems dating back several years, combined with high levels of unauthorised, irregular, and fruitless expenditure, have resulted in negative audit outcomes, including qualifications.
“When I was appointed, I appreciated the issues that the municipality faces,” Maseanoka said. He described the financial state as poor, citing high unauthorised irregular and fruitless expenditure that contributed to the qualified audits.
The municipality is contending with significant water losses, which previously stood at 72% and have since been reduced to 55%. Similar challenges exist with electricity losses, preventing full recovery of costs and leading to difficulties in servicing bills.
This has resulted in substantial creditors, particularly to Eskom and Rand Water. Maseanoka revealed that Emfuleni currently carries an outstanding debt of about R12 billion, with approximately R10 billion owed to Eskom alone.
However, interventions are in progress. The municipality is participating in a national treasury debt relief programme and has received a R1.9 billion write-off for the Eskom debt, which is currently being processed. This is expected to significantly reduce the liability once finalised.
With Rand Water, a special purpose vehicle has been established—despite delays due to legislative issues—to ring-fence R1.3 billion of the owed amount. The joint entity will manage water and sanitation services, with the aim of improving infrastructure and reducing losses over time.
Maseanoka noted that infrastructure challenges require not only maintenance but also replacement of ageing pipelines, a process now being pursued in partnership with Rand Water. He expressed confidence that significant improvements in loss reduction and debt servicing would be visible within the next three years once the entity is fully operational.
On the wage bill, the CFO stated that Emfuleni spends R117 million per month on salaries, which equates to 18% of its budget. This falls below the standard benchmark of 25–35%. He attributed the relatively low figure to a high vacancy rate, even when accounting for overtime payments, and emphasised that the municipality is carefully balancing the need to fill positions against cash flow constraints.
Addressing media reports of R700 million spent on overtime over a period of approximately seven years, Maseanoka explained that the expenditure spans multiple departments, including fire and rescue, sewer maintenance, and traffic services. He maintained that detailed records are available to justify the payments, linked to standby duties and the impact of vacancies.
Despite these explanations, residents continue to report uncollected waste piling up on streets and sewage flowing in public areas. Maseanoka acknowledged the visible service challenges and committed that improvements would become noticeable on the ground within the next three months.
Regarding a 2022 report of R15 million allegedly wasted on graveyard cleaning and protection, Maseanoka confirmed that grass-cutting work had been carried out by contracted service providers. He noted that recent heavy rains had caused rapid regrowth, but verification processes—including supervisor checks and portfolios of evidence—were followed before payments. Further cutting would resume once rains subside.
On allegations that the municipality spent R50 million on a non-existent bridge dating back to 2013, Maseanoka confirmed that expenditure had occurred on the project. He stated that the current accounting officer is actively following up on the matter through proper legislative processes, including reviews of past forensics. He added that the municipality has already dismissed around 30 employees and placed others on suspension as part of ongoing consequence management for maladministration.
Maseanoka stressed that interventions are underway to address both financial and service delivery issues, although he conceded that residents have yet to fully experience the benefits of the work being done behind the scenes.
The CFO concluded by reiterating the municipality’s commitment to turning around its challenges without providing a specific timeline for full resolution beyond the short-term service improvements anticipated in the coming months.