​Thabo Bodibe
Gauteng Finance and Economic Development MEC Lebohang Maile has committed to facilitating a turnaround strategy for Emfuleni Local Municipality, which faces financial difficulties.
Addressing the media on Sunday, 22 September 2024, MEC Maile outlined Gauteng Provincial Government plans to address Emfuleni's R8 billion debt to Eskom.
"The basis for this meeting was a follow-up of a meeting held on 18 September 2024, with Emfuleni's officials for Gauteng Provincial Treasury to gain a comprehensive understanding of Emfuleni's state of finances. On Wednesday, 11 September 2024, the Sheriff of the Court successfully attached the Emfuleni's bank accounts on instruction from the power utility, Eskom, which is owed over R8 billion by the municipality.
"The situation concerns the Gauteng Provincial Government as the amount owed by Emfuleni Local Municipality represents an estimated 10% of the total R82 billion owed by municipalities and is among the top three municipalities in debt to Eskom. The municipality's failure to pay for bulk electricity compromises Eskom's financial stability and ability to provide affordable electricity," Maile explained. 
The provincial government will work with the municipality to facilitate a turnaround strategy for its finances, which will help it address the ongoing challenges of revenue generation and collection. 
Gauteng Treasury will assist Emfuleni Local Municipality with efforts to comply with the Municipal Finance Management Act (MFMA) 124 Debt Relief Program. 
This will include financial prioritisation and ring-fencing guidance to ensure funds are directed towards basic service delivery.
Maile also noted that Emfuleni Local Municipality recently received a qualified audit report from the Auditor General of South Africa (AGSA) for the 2022/2023 financial year. This follows a similar audit opinion for the 2021/2022 financial year, indicating persistent financial management issues.
The Provincial Treasury has initiated interventions aimed at improving compliance with Supply Chain Management (SCM) Regulations, reducing insurance risks, and addressing supplier non-payment. 
The focus will also be on curbing unauthorised, irregular, fruitless, and wasteful expenditures. Additionally, new initiatives are being introduced to enhance the credibility of the annual financial statements and ensure municipalities produce interim financial statements.
"The Gauteng Provincial Government is prepared to provide necessary assistance in stabilising the municipality; the fiscal and governance challenges confronting the Emfuleni Local Municipality are complex and informed by structural and institutional constructs. This necessitates a multi-disciplinary, long-term and sustainable approach to resolving them," added MEC Maile.