ANC-EFF Coalition violates PFMA by Failing to Table the City’s Annual Financial Statement to Council

ActionSA in Ekurhuleni has written to the Gauteng CoGTA MEC, Mzi Khumalo, seeking intervention after the ANC/EFF coalition’s failure to table the City’s 2022/23 Annual Financial Statement.

This reflects a worrying lack of accountability and adherence to legal requirements as outlined in the Public Finance Management Act (PFMA).

Failure to meet this deadline is a clear inditement against the puppet Mayor Ngodwana, the EFF MMC for Finance Cllr Dunga & their ANC colleagues in the Mayoral Committee.

ActionSA will also request that the Auditor-General issue a special report of the City, as the ANC/EFF Coalition scrambles to cover up gross mismanagement.

In terms of 126(1)(a) of the MFMA, all Municipalities must prepare consolidated annual financial statements and submit to the Auditor General (AG) for auditing within 3 months of the financial year end (end of September). The mayor must then in terms of 127(2), within seven months after the end of financial year, table in the Municipal Council the annual report of the municipality (end of January).

The Council must in terms of section 129(1) consider the annual report by no later than 2 months from the date on which annual report was tabled in Council (end of March).

All but one of the requirements have since been met. This failure directly impacts the ability of Council to hold politicians and officials accountable for their actions.

In October 2023, ActionSA successfully petitioned the Speaker of Council to call an extra-ordinary council meeting to debate the state of the City’s finance. ActionSA expressed its concerns over service delivery failures largely caused by the City’s inability to pay service providers, with the bill growing to R2 Billion.

It is becoming apparent that the current coalition government of the ANC-EFF, led by the hapless Mayor Ngodwana, have led Ekurhuleni to the brink of being placed under administration for failure to pay creditors on time.

Ekurhuleni currently owes creditors R4 billion, including:

– R1.5 billion is owed to Eskom;

– R117 million is owed to ERWAT;

– R2.5 billion is owed to Outsourced Contractors; and

– R174 million is owed to Randwater.

ActionSA will continue to use all avenues available to us in Ekurhuleni to ensure that those who have led this City onto the brink of collapse are held to account.