Lebogang Maile, Gauteng MEC for Finance and Economic Development, has raised the alarm about the province’s dire financial state, warning of a possible collapse by 2025.
This startling admission defies Premier Panyaza Lesufi’s assurances about Gauteng’s financial health, as the provincial government prepares to pay a massive R20 billion to the SA National Roads Agency (SANRAL) to settle the e-toll debt.
Maile was addressing at a media briefing this week about the province’s cash position following the provincial audit results, stating that if they were not careful, the province could be bankrupt by June of next year.
This hefty payment will be delivered in installments, with the first payment of R3 billion due on Monday. However, Maile admitted that it was a financial strain.
His caution comes amid concerns about the ANC-led government’s prioritization of vanity projects like the Nasi iSpani scheme and crime warden training, which have delivered low returns.
Lesufi’s initiatives, which include bursary systems, a state-owned bank, and a pharmaceutical enterprise, have put extra demand on provincial resources.
“On Monday, we are due to pay our first e-toll installment. Remember, the citizens refused to pay; now the government must pay. So we’re going to pay roughly R20 billion: R12 billion on the actual debt, R4 billion on interest, and another R4 billion on maintenance,” Maile explained.
He noted that the issues in health and education, as well as the reduction of almost R15 billion from the provincial government budget, were putting a strain on the provincial purse.
“We have a lot of pressure, but we’re working hard and doing a lot more to raise more resources so that we’re able to keep up with the challenges and the pressures that arise from time to time,” he told me.
The e-tolling system, which was officially discontinued earlier this year, has been a divisive topic since its inception in December 2013. Motorists had to pay to use specific roadways in Gauteng, mostly in Johannesburg and Tshwane.
The Gauteng government initially promised to repay R6.9 billion to e-toll payers, but later backtracked.
Maile also disclosed that the Gauteng Health Department was facing a bill of R18 billion in legal fees alone.
“The Department of Health alone has over R18 billion in litigation. So, we’ll be meeting with the MEC (Nomantu Nkomo-Ralehoko) next week since health is a major danger to our budget,” he explained.
Responding to Maile’s claims about the province’s grave financial situation, the DA stated that it has long warned against the province’s unsustainable spending patterns, which had resulted in deficits of R5.4bn, R4.3bn, and R4.bn in consecutive fiscal years, attributing the financial difficulties to mismanagement.
Ruhan Robinson, the DA Gauteng shadow minister of finance, stated in a statement yesterday that with the province on the verge of financial collapse, fast action is required to avoid severe implications for service delivery.
“Despite the Premier’s denial or dishonesty…” It’s startling to hear MEC Maile speak as if this is a fresh issue. Despite this obvious issue, the ANC-led provincial administration has been steadfast in maintaining the status quo and launching new vanity projects rather than focusing on much-needed reforms.
“While the significant e-toll debt payment expense has put a lot of strain on the provincial government to make ends meet, it is only exacerbating an already existing problem and is not the root cause of the province’s financial problems.
“The DA will continue to monitor the situation and push for belt-tightening measures to protect Gauteng residents from government mismanagement,” according to Robinson.
At the time of publication, attempts to contact Lesufi’s office yielded no response.
