(Photo: Tania Heyns/Maroela Media)
The ANC-led coalition in Ekurhuleni experienced yet another setback on Thursday when its adjusted budget for the 2026/27 financial year failed to garner enough support in the council for the second time.
Several opposition parties, including the DA, FF Plus and ActionSA, voted against the budget, arguing that it “contains unrealistic assumptions and puts undue pressure on residents through the proposed rate increases”.
The budget provides for increases of 11% for water, 8.35% for sanitation, between 8.76% and 9.01% for electricity, 3.4% for garbage disposal and an additional 2% increase in property tax.
Khathutshelo Rasilingwane, the DA’s mayoral candidate in Ekurhuleni, says the party could not support a budget which he says will further harm residents financially while the metro’s management problems continue.
“The city cannot justify a budget that puts so much financial pressure on struggling residents while serious shortcomings in the government’s operation are not dealt with.
“This ANC-led coalition uses more and more money, but provides less and less services.”
According to Rasilingwane, the proposed increases would further complicate the daily lives of residents and businesses.
“Households and businesses are already struggling with the rising cost of living. These increases would have made it even more difficult for residents right across Ekurhuleni.”
Concerns about salary account
The DA also expressed its concern about the growing costs associated with employees.
According to the party, the budget process showed that this expenditure rose from 7.7% to 8.4% and finally to 9% – significantly more than inflation.
Ekurhuleni archive photo (Photo: ActionSA)
“This is typical of ANC-led cadre deployment arrangements. Salary increases, bloated administrations and enormous staff costs are maintained, but service delivery continues to deteriorate.
“Residents have the right to ask how this escalation can be justified, while service delivery continues to deteriorate.”
The DA also objected to a proposed allocation of R15 million to the intended Ekurhuleni development agency.
“No clear motivation for its establishment was provided and its mandate or oversight framework was not properly explained either.
“In light of rising fares, this raises serious questions about the metro’s spending priorities.”
According to the DA, these issues indicate a budget that is not credible and offers no assurance that public money will be managed responsibly.
“The rejection of this budget sends a clear message that proposals based on unrealistic assumptions and rising costs cannot be supported.
“The DA remains committed to protecting residents from unnecessary financial pressure, restoring accountability and ensuring that public money is spent where it makes the biggest difference.”
FF Plus questions figures
The FF Plus agreed with the DA’s statements and said the budget is based on assumptions that are not in line with the current economic climate, high unemployment and increasing financial pressure on households.
“Although the ANC coalition presents the budget as funded, credible and sustainable, it relies on a highly questionable collection rate of 90% and predicts a surplus of R1.523 billion. The FF Plus strongly questions these figures.”
Argieffoto (Foto: South African Tourism / Flickr via Wikimedia Commons)
The party says the proposed bridging funding of R500 million raises further concerns.
“This raises the serious question of why loans are needed at all if the budget is really fully funded.”
According to the FF Plus, the increase in property tax is particularly unnecessary.
“The metro can easily make up for this shortfall by curbing power and water losses, cracking down on illegal connections and implementing improved credit control and collection processes.
“Instead of simply increasing rates, the metro council should proactively engage with Nersa, Rand Water and other role players to ease the pressure of rising costs on consumers.”
The party says residents deserve a budget that is realistic, affordable and focused on service delivery.
ActionSA: Residents are a cash cow
ActionSA also voted against the budget and says residents can no longer be used as a source of income to compensate for years of poor financial management and waste.
The party admits that the government of local unity has made certain concessions after discussions on the employment of outsourced workers and the creation of permanent municipal posts.
“The budget remains fundamentally flawed, because it does not offer meaningful relief on rates.”
According to ActionSA, the administration has also not proven that all possible options have been investigated to reduce the burden on residents, before tariff increases are introduced.
“We have maintained throughout that residents cannot be treated as a source of income to compensate for years of poor financial management and waste.
“Every possible effort should be made to lower the cost of living, before struggling families are asked to pay more.”
The party says its position is driven by the interests of residents.
“Residents are faced with rising food prices, more expensive transport and increasing economic uncertainty.
“The municipality should be looking for ways to alleviate this pressure, not to make it worse through excessive rate increases that put further pressure on families and small businesses.”
ActionSA says the party cannot support the budget until it is convinced that everything possible has been done to lower electricity rates and protect households from rising costs.
“Our vote against this budget is not an act of obstruction. It is a principled stance in defense of residents who deserve a municipality that prioritizes affordability, accountable management and sustainable economic growth.”
Mayor now has to try again
After the budget could not garner enough support in the council, Nkosindiphile Xhakaza, the executive mayor, and Jongizizwe Dlabathi, mayoral committee member for finance, are now legally obliged to submit another adjusted budget to the council within seven days.
The failure to get the budget passed for a second time puts the ANC-led coalition under increasing pressure, as time is quickly running out to obtain the necessary support before the legal consequences of a budget failure kick in.