Ekurhuleni Budget Impasse: EFF Cites Fiscal Realities in R71 Billion Rejection

A coalition of opposition parties has blocked the City of Ekurhuleni’s R71 billion budget proposal for the 2026/2027 financial year, prompting calls for renewed negotiations to restore municipal stability. The Economic Freedom Fighters (EFF) has publicly justified its stance, pointing to unsustainable revenue assumptions and governance concerns as central to the council vote, which saw 105 members oppose the plan against 96 in support.

Finance MMC Jongizizwe Dlabathi is now tasked with preparing a revised fiscal framework. While appealing for unity among political groups to safeguard service delivery, Dlabathi suggested that political friction—particularly from the EFF—contributed to the impasse.

EFF Gauteng spokesperson Dumisani Baleni pushed back firmly against that narrative. “Let me be clear: this budget did not fail because of one party,” Baleni stated. “ActionSA, the DA, and other organizations joined in rejecting a plan that lacks credible funding foundations.”

With only 31 seats on the council, the EFF lacks the numbers to unilaterally defeat any motion. Baleni stressed that the rejection reflected shared concerns across multiple caucuses regarding the budget’s structural weaknesses.

Key objections raised by the EFF include:

  • Questionable Revenue Forecasts: The proposal assumes improved collections from sources like Eskom, yet Ekurhuleni’s actual revenue recovery currently sits under 86%. “You cannot build a budget on hopes when the data shows decline,” Baleni noted.
  • Excessive Outsourcing: The EFF continues to oppose reliance on contracted service providers, arguing that long-term municipal resilience requires strengthening internal capacity rather than expanding external tenders.
  • Consultation Gaps: Baleni alleged that the ANC-led administration failed to engage meaningfully with opposition caucuses during budget formulation, undermining collaborative governance.
  • Procedural Integrity: The spokesperson welcomed a recent shift by the ANC-led Speaker to honor proper voting protocols—a change the EFF had previously pursued through legal channels after earlier attempts to bypass majority requirements were challenged in court.

Baleni also addressed the broader political dynamic, observing that the ANC governs Ekurhuleni without a majority mandate. “Leading with less than 50% requires consultation, not coercion,” he said. “When a budget is rejected on substantive grounds, it is misleading to frame it as partisan sabotage.”

On resolving the stalemate, Baleni called for inclusive dialogue. “Breaking this deadlock means the ANC must sit with the DA, ActionSA, the EFF, and others to forge a budget grounded in realistic revenue planning and reduced dependency on outsourcing,” he explained. “We are not asking for our views to dominate—only to be considered.”

The spokesperson referenced internal administrative tensions, noting that the previous finance MMC reportedly stepped down citing leadership challenges under the current mayor. While not elaborating on those circumstances, Baleni underscored that fiscal decisions must prioritize residents over political posturing.

Clarifying the EFF’s current role after exiting the executive committee, Baleni said: “Our responsibility has shifted from co-governance to accountability. Being in opposition does not mean abandoning our communities—it means scrutinizing plans to ensure they truly serve them. We support stable governance, but not at the expense of fiscal honesty.”

Baleni reaffirmed that the EFF remains open to supporting budgets that advance community interests, regardless of their origin. “At national level and locally, we back proposals that benefit the people. This budget, however, lacked credible implementation timelines, realistic funding strategies, and measurable deliverables.”

With municipal operations currently running on the prior year’s budget framework, pressure mounts for parties to find common ground. The revised proposal must secure cross-party backing to ensure continued payment of municipal staff and uninterrupted delivery of essential services to Ekurhuleni residents.

 

Related Articles

Latest Articles