Political Standoff Over Ekurhuleni’s R71 Billion Budget Raises Service Delivery Concerns

A political impasse in Ekurhuleni has placed municipal services at risk after the EFF, Democratic Alliance, and Freedom Front Plus voted against the city’s R71 billion budget. Jongizizwe Dlabathi, the municipality’s Finance Member of the Mayoral Committee and ANC regional secretary, warned that the rejection could undermine essential service delivery and staff remuneration if not resolved before the new financial year begins.

Dlabathi characterized the opposition’s stance as politically motivated rather than grounded in substantive policy concerns. “It is politics at play,” he stated, emphasizing that the budget was developed through extensive consultation and aligns with statutory local government mandates. National Treasury has confirmed the budget is fully funded, with tariff increases carefully calibrated to remain affordable despite exceeding the current 4.0% CPI benchmark.

Key allocations include an additional R800 million directed toward repairs and maintenance, alongside investments in human resources, equipment, and vehicles to strengthen institutional capacity. Dlabathi noted that these provisions directly address longstanding concerns raised by the very parties now opposing the budget.

While the current budget remains operational through June, Dlabathi cautioned that failure to approve a new budget by July 1, 2026, would legally restrict municipal spending. This could disrupt water, sanitation, and electricity services and hinder the city’s ability to meet wage obligations under agreements reached with the South African Local Government Bargaining Council.

Addressing specific opposition objections, Dlabathi responded to the Freedom Front Plus’s skepticism regarding the 90% revenue collection assumption, explaining that National Treasury guidelines require municipalities to budget from this baseline upward. He added that three of four concerns raised by the Democratic Alliance have been incorporated into amended documentation, including accelerated provisions for water services development priorities they have championed.

Tensions with the EFF, Dlabathi explained, are partly rooted in a governance restructuring that proposed reducing their representation on the mayoral committee from four positions to two—a compromise the party declined. He reiterated that the ANC remains willing to collaborate with the EFF, provided arrangements reflect proportional representation, noting the ANC holds 78 wards compared to the EFF’s 31 in Ekurhuleni.

Dlabathi also provided an update on the R2 billion cybercrime scheme uncovered earlier this year, in which municipal officials allegedly collaborated with external companies to manipulate billing systems and erase or reduce outstanding debts. The fraud was identified during a quarterly revenue review, prompting an internal investigation that has reconstructed approximately 1,900 accounts and recovered R819 million to date.

Enhanced financial controls have since been implemented, including stricter system access protocols and comprehensive audit trails. One official has been arrested following forensic tracing of a computer used in the scheme. Dlabathi confirmed his intention to refer the matter to a government special investigation unit tasked with addressing criminal conduct and corruption in the public sector.

On personal political matters, Dlabathi clarified that his brief resignation earlier this year stemmed from internal ANC processes and was unrelated to inter-party dynamics with the EFF. He stressed that cooperative governance should be evaluated on a sphere-by-sphere basis, with each jurisdiction engaging parties according to local circumstances and community needs.

“Let all political parties prioritize service delivery, prioritize our communities, and ensure that we are able to pay our workers,” Dlabathi concluded, urging stakeholders to transcend political posturing in the interest of Ekurhuleni’s residents.

 

Related Articles

Latest Articles