ActionSA is deeply concerned by Emfuleni Local Municipality’s latest plea for National Treasury to once again write off a portion of its Eskom debt, as reported by Eyewitness News today.
This appeal comes barely months after the close-out of a six-year Section 139(1)(b) intervention by the Gauteng Provincial Government, a process that consumed vast public resources but has yielded little evidence of sustainable turnaround. It is disheartening that despite receiving repeated technical and financial support, including from provincial departments, Emfuleni continues to exhibit fiscal irresponsibility and governance failures.
In a written response to ActionSA’s Legislative Questions, the Gauteng MEC for Cooperative Governance confirmed that Emfuleni adopted an unfunded budget for the 2025/26 financial year, placing it in direct violation of the eligibility criteria for Eskom Debt Relief as per National Treasury guidelines. One of the key conditions is the adoption of a funded budget and compliance with financial recovery plans requirements that Emfuleni has demonstrably failed to meet.
The municipality’s current Eskom debt stands at over R5.3 billion. In April 2023, Treasury had already conditionally written off nearly R1 billion, on the basis that Emfuleni would improve its financial governance. Yet, according to the MEC’s own report, the Department of Cooperative Governance has not issued any formal directive or invoked legislative provisions to enforce accountability for Emfuleni’s ongoing failures.
This inaction is unacceptable. ActionSA believes that the Provincial Government has abdicated its responsibility to the residents of Emfuleni by allowing chronic non-performance to persist without consequence.
ActionSA calls for the following immediate actions:
– No Further Eskom Debt Write-Offs for Emfuleni until there is full compliance with the conditions of the Eskom Debt Relief Framework.
– Formal Invocation of Legislative Directives by the MEC for CoGTA under the Municipal Systems Act and MFMA to compel compliance.
– Release of the Updated Financial Recovery Plan adopted in December 2024, including progress against benchmarks and consequences for non-compliance.
– Disclosure of Debt Management Committee Records relating to Emfuleni’s engagements with Eskom, Rand Water, and Treasury.
– Exploration of Alternative Governance Mechanisms, including a renewed Section 139(5) intervention or provincial administration in terms of Section 154 of the Constitution.
The people of Emfuleni deserve more than broken promises and recycled excuses. ActionSA remains committed to exposing maladministration, demanding transparency, and restoring service delivery in our municipalities.
ActionSA: “No More Bailouts Without Accountability at Emfuleni”
ActionSA is deeply concerned by Emfuleni Local Municipality’s latest plea for National Treasury to once again write off a portion of its Eskom debt, as reported by Eyewitness News today.
This appeal comes barely months after the close-out of a six-year Section 139(1)(b) intervention by the Gauteng Provincial Government, a process that consumed vast public resources but has yielded little evidence of sustainable turnaround. It is disheartening that despite receiving repeated technical and financial support, including from provincial departments, Emfuleni continues to exhibit fiscal irresponsibility and governance failures.
In a written response to ActionSA’s Legislative Questions, the Gauteng MEC for Cooperative Governance confirmed that Emfuleni adopted an unfunded budget for the 2025/26 financial year, placing it in direct violation of the eligibility criteria for Eskom Debt Relief as per National Treasury guidelines. One of the key conditions is the adoption of a funded budget and compliance with financial recovery plans requirements that Emfuleni has demonstrably failed to meet.
The municipality’s current Eskom debt stands at over R5.3 billion. In April 2023, Treasury had already conditionally written off nearly R1 billion, on the basis that Emfuleni would improve its financial governance. Yet, according to the MEC’s own report, the Department of Cooperative Governance has not issued any formal directive or invoked legislative provisions to enforce accountability for Emfuleni’s ongoing failures.
This inaction is unacceptable. ActionSA believes that the Provincial Government has abdicated its responsibility to the residents of Emfuleni by allowing chronic non-performance to persist without consequence.
ActionSA calls for the following immediate actions:
– No Further Eskom Debt Write-Offs for Emfuleni until there is full compliance with the conditions of the Eskom Debt Relief Framework.
– Formal Invocation of Legislative Directives by the MEC for CoGTA under the Municipal Systems Act and MFMA to compel compliance.
– Release of the Updated Financial Recovery Plan adopted in December 2024, including progress against benchmarks and consequences for non-compliance.
– Disclosure of Debt Management Committee Records relating to Emfuleni’s engagements with Eskom, Rand Water, and Treasury.
– Exploration of Alternative Governance Mechanisms, including a renewed Section 139(5) intervention or provincial administration in terms of Section 154 of the Constitution.
The people of Emfuleni deserve more than broken promises and recycled excuses. ActionSA remains committed to exposing maladministration, demanding transparency, and restoring service delivery in our municipalities.