Latest news with #MunicipalEconomicReviewandOutlook
IOL News
18 hours ago
- Business
- 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
- Business
- 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.
