JOHANNESBURG, Gauteng — As the Gauteng municipal finances recovery initiative accelerates, Premier Panyaza Lesufi and Cooperative Governance and Traditional Affairs (CoGTA) MEC Jacob Mamabolo have detailed a robust, multi-layered strategy to stabilize local governments. While the Emfuleni and Merafong municipalities require urgent intervention to address severe financial and service delivery deficits, provincial leadership remains confident that broader regions, notably the City of Johannesburg, are demonstrating measurable progress toward sustainable fiscal health.
Accountability and Law Enforcement Partnerships
A cornerstone of the recovery effort is strict consequence management. MEC Mamabolo commended law enforcement agencies for their prompt, lawful actions, highlighting the recent arrest of the Emfuleni fleet manager in connection with a R16 million fraud scheme. He noted that the political killings task team has indicated further arrests are imminent as investigations deepen.
Addressing concerns that implicated officials might resign to evade justice, Mamabolo emphasized the province’s active partnership with specialized law enforcement bodies, particularly the Special Investigating Unit (SIU). He urged authorities to investigate thoroughly across the province to protect public assets, uphold the rule of law, and ensure that municipal councils utilize their legislative authority to open criminal cases where necessary.
A Sustainable “Public Partnership” Model
To dismantle deep-seated structural issues, the province launched a comprehensive municipal turnaround plan in October 2024 under Premier Lesufi’s leadership. MEC Mamabolo explained that this strategy deliberately avoids the imposition of top-down Section 139 interventions. Instead, it leverages Section 154 of the Constitution, which mandates supportive cooperation between spheres of government.
The turnaround framework operates as a unique “public partnership” involving three distinct pillars:
- Provincial Leadership: Heads of provincial departments are assigned to lead specific recovery work streams.
- Municipal Leadership: Local councils are driving the process, with three mayors and two speakers leading specific task teams, while the remaining municipalities are guided by Members of Mayoral Committees (MMCs) and technical officials.
- Expert Intervention: The Council for Scientific and Industrial Research (CSIR) has been integrated into the process, deploying specialized experts to each work stream to inject fresh knowledge and modernize operational dynamics.
**Targeting Non-Revenue Water and Billing Integrity**
A major focus of the turnaround is eliminating unfunded budgets, which MEC Mamabolo described as a breach of ethical leadership that misleads the public and guarantees service delivery failures.
To combat revenue leakage, the province is launching a targeted technological pilot in the City of Johannesburg between now and December to tackle “non-revenue water.” With water losses reaching up to 50% in some areas, the CSIR-backed initiative will deploy wireless sensors across the distribution network. This technology will track water flow, pinpoint exact leakage locations, and establish clear Key Performance Indicators (KPIs), replacing scattered, reactive repairs with precise, data-driven infrastructure management.
Simultaneously, the province is collaborating with National Treasury to overhaul municipal billing engines. This includes advancing the rollout of smart meters to improve credit control and ensuring that utility revenues are strictly ring-fenced to maintain and upgrade water and electricity infrastructure.
Interim Audits to Restore Market Confidence
To secure long-term financial viability, MEC Mamabolo stressed the critical need for all municipalities to adopt interim audits and submit interim financial statements, rather than relying on a single annual audit cycle. This continuous auditing culture is essential for building the credibility required to borrow from financial markets.
The City of Johannesburg has already initiated this process, with the Auditor-General agreeing to review their interim financial statements. MEC Mamabolo indicated that the city is expected to make significant announcements before December regarding secured financial market funding and its targeted deployment for service delivery.
As a benchmark for success, Mamabolo pointed to Mahikeng. By proactively utilizing interim audits to resolve historical asset management challenges, Mahikeng successfully avoided the withdrawal of its equitable share. The city has since moved out of the critical intervention category and is now focusing on medium- to long-term service delivery investments.
Ultimately, the provincial strategy hinges on mainstreaming audit practices year-round. Because the Auditor-General evaluates both financial compliance and service delivery performance targets, sustaining high governance standards, enforcing disciplinary board actions, and empowering municipal public accounts are non-negotiable steps for the lasting recovery of Gauteng municipal finances.
