New report reveals deep cracks in local governance
JOHANNESBURG - Gauteng Finance MEC Lebogang Maile says the province can no longer rely on its economic reputation while failing to deliver basic services to communities.
He was speaking at the release of Gauteng's first Municipal Economic Review and Outlook.
It's a report that highlights serious performance gaps, financial mismanagement and service delivery problems facing municipalities across the province.
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IOL News
a day ago
- IOL News
Gauteng can no longer rely on economic reputation, warns MEC Maile
Lebogang Maile,Gauteng Finance MEC Lebogang Maile has sounded the alarm over the state of local government in the province, Gauteng Finance MEC Lebogang Maile has sounded the alarm over the state of local government in the province, warning that Gauteng can no longer lean on its reputation as South Africa's economic powerhouse while failing to deliver basic services to its residents. Maile was speaking on Tuesday during the official release of Gauteng's first Municipal Economic Review and Outlook (MERO) report, a wide-ranging diagnostic that paints a sobering picture of poor governance, widespread financial mismanagement, and deteriorating service delivery across the province's municipalities. 'We cannot continue to ride on the prestige of being the country's economic engine while our communities are dealing with raw sewage in the streets, unreliable electricity, and dysfunctional waste services,' Maile said. The MERO report reveals that many municipalities in Gauteng — including major metros like Johannesburg, Tshwane, and Ekurhuleni — are facing serious performance shortfalls. These include low revenue collection rates, non-functional billing systems, escalating debt levels, and poor infrastructure maintenance. According to the report, less than 40% of municipalities in the province received clean audits, and many are struggling to pay creditors on time. 'Financial mismanagement is becoming institutionalised in some local governments,' Maile said, calling for urgent reforms. 'This report is a wake-up call.' Key findings of the MERO include: Worsening service delivery: Many municipalities have failed to meet basic standards for electricity, water, waste collection, and sanitation. Poor financial health: A growing number of municipalities are in financial distress, with ballooning debt to service providers like Eskom and Rand Water. Low economic resilience: Despite Gauteng's large contribution to national GDP, many local governments cannot support sustainable economic development in their areas. The release of the report comes at a time of growing frustration among Gauteng residents. Community protests over electricity outages, water shortages, and poor roads have become increasingly common. In recent months, political pressure has mounted for the provincial government to intervene in failing municipalities. Maile acknowledged that while provincial oversight had improved in recent years, more direct and decisive action may be required to prevent a total collapse in service delivery. He said the Gauteng Provincial Treasury will begin working more closely with municipal leadership to ensure proper budgeting, improved revenue collection, and better governance practices. 'We can no longer turn a blind eye to underperformance,' he said. 'Communities are losing hope, and if we fail to act, we risk deepening inequality and economic exclusion.' The MERO report will now inform new provincial and local government strategies aimed at revitalising local economies, stabilising finances, and restoring service delivery. Maile added that he hopes the review will become an annual fixture to promote transparency and accountability. 'This is not just a diagnostic tool,' he concluded. 'It's a call to action.'
eNCA
a day ago
- eNCA
New report reveals deep cracks in local governance
JOHANNESBURG - Gauteng Finance MEC Lebogang Maile says the province can no longer rely on its economic reputation while failing to deliver basic services to communities. He was speaking at the release of Gauteng's first Municipal Economic Review and Outlook. It's a report that highlights serious performance gaps, financial mismanagement and service delivery problems facing municipalities across the province.
The Citizen
12-06-2025
- The Citizen
MLM expands CCTV, upgrades infrastructure in new budget rollout
Midvaal Local Municipality (MLM) is among the few municipalities in Gauteng to adopt a fully funded budget. This is after the unanimous decision to approve the 2025/2026 Medium Term Revenue and Expenditure Framework (MTREF) and Integrated Development Plan. This means that MLM has enough capital to cover all planned expenditures, including operational and capital costs. According to MLM, the Draft Integrated Development Plan and MTREF came after months of consultations with various communities and stakeholders across the municipality. The Gauteng budget 2.0 for the 2025/26 financial year is R172.3b, an increase of some R886.6m from the budget tabled earlier this year. As Gauteng MEC for Finance and Economic Development, Lebogang Maile, tabled the Gauteng budget 2.0 for the 2025/26 financial year recently, he raised a serious concern that only four municipalities in Gauteng have tabled funded budgets while the rest remain unfunded. According to the municipality, the R2b 2025/2026 MTREF was drafted with careful consideration of the challenging economic climate facing the people of Midvaal, as well as the wider challenges faced by South Africa. This, MLM believes, showcases a government that prioritises the well-being and interests of its residents. The revenue budgeted for the year is R2.126b, an increase of 9.79% over the current year's budgeted revenue. Key service delivery projects included in this budget is R69m to replace old asbestos pipes using the Water Services Infrastructure Grant (WSIG). Phase 3 of the electrification of Sicelo in Ext 5 (Silahliwe) continues. In previous budgets, MLM allocated funding for Phases 1 and 2 in Kuvukiland and Stand 118. A total of R26m will be geared towards the construction of a substation in Savanna City, which will increase electricity capacity to support future housing developments. 'A total of R27m has been set aside in the 2024/25 budget from loan finance for road rehabilitation and the conversion of gravel roads to tar. A further R22m is allocated in the 2025/26 financial year to continue with rehabilitation and gravel-to-tar upgrades.' Furthermore, the MLM said it will give rebates of 25% and 50% on property rates. 'The threshold for qualification has been extended to five times the value of the SASSA Old Age Pension Grant, which equates to approximately R11 000.' MLM reveals that it has procured two high-speed vehicles for crime prevention purposes. 'We have made provision for the employment of law enforcement officers who will drive these high-speed vehicles, working alongside our CCTV cameras and other safety mechanisms to curb criminal activities in our municipality. The rollout of CCTV cameras in the Western and Northern regions has commenced, while a significant portion of the budget is being used to maintain existing cameras.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
