Note to Editors: Please find a soundbite in English by Michael Waters MPL, here.
The Democratic Alliance (DA) in Gauteng has uncovered that Premier Panyaza Lesufi’s government has taken no steps to prevent a potential electricity supply crisis in the City of Ekurhuleni. The municipality currently owes Eskom a staggering R6.948 billion.
The DA calls on the Gauteng MEC for Finance, Nkululeko Dunga, to immediately engage with the City of Ekurhuleni on its Eskom debt, provide a full and transparent breakdown of how this debt has accumulated, and clarify the criteria used to determine whether a municipality qualifies for intervention.
This was revealed by the MEC Dunga, in a reply to the Democratic Alliance (DA) Gauteng’s questions tabled in the Gauteng Provincial Legislature. The MEC confirmed the following:
• The City of Ekurhuleni owes Eskom nearly R7 billion for bulk electricity.
• The debt is claimed to have accumulated within 90 days.
• Gauteng Provincial Treasury has not engaged Ekurhuleni directly on this crisis.
• No steps have been taken to prevent Eskom from interrupting electricity supply to residents and businesses.
This is nothing short of an abdication of responsibility.
If the Provincial Treasury believes that a municipality owing Eskom nearly R7 billion does not warrant intervention, it raises a serious question about what exactly constitutes a financial crisis in Gauteng.
Even more concerning is the claim that this debt accumulated within a 90-day period. This would imply that the City is failing to pay approximately R2.3 billion per month, a figure that raises serious questions about the accuracy of the reporting, the sustainability of the City’s finances, and whether the full extent of the crisis is being disclosed.
At the same time, residents and businesses in Ekurhuleni remain at risk of electricity disruptions, as Eskom has indicated its intention to interrupt supply due to non-payment, while the Provincial Government sits idle.
The MEC further claims that the City has not met the thresholds for intervention according to section 139 of the Constitution. This reliance on technical reporting thresholds, based on the City’s own submissions, ignores the lived reality on the ground, a municipality drowning in debt and unable to meet its obligations.
The DA Gauteng has consistently warned about the rapid deterioration of the City of Ekurhuleni’s finances. This latest reply confirms that the crisis is real and that the Provincial Government is failing to act.
The residents will feel the consequences of this failure through service disruptions, economic instability, and declining infrastructure.
Gauteng cannot afford a situation where municipalities collapse financially while those tasked with oversight stand by and do nothing.