Gauteng’s financial stability is at risk, according to Lebogang Maile, the MEC for Finance and Economic Development.
He warned that the province could face financial collapse by 2025, contradicting Premier Panyaza Lesufi’s claims of financial stability.
During a recent media briefing, Maile highlighted the province’s precarious cash position following the provincial audit outcomes, stating that Gauteng could be bankrupt by June next year if caution is not exercised.
The provincial government is preparing to pay R20 billion to the SA National Roads Agency (SANRAL) to settle the e-toll debt.
The first instalment of R3 billion is due on Monday, which Maile admitted is a financial strain.
Maile’s warning comes amid concerns over the ANC-led government’s focus on projects like the Nasi iSpani programme and crime warden training, which have shown minimal returns.
Lesufi’s initiatives, including bursary schemes, a state-owned bank, and a pharmaceutical company, have further strained resources.
Maile explained that the government must pay the e-toll debt because citizens refused to pay.
The total cost includes R12 billion for the debt, R4 billion for interest, and another R4 billion for maintenance.
He also mentioned that budget cuts of about R15 billion have heavily impacted the provincial purse, especially in health and education.
The e-tolling system, scrapped earlier this year, has been controversial since its launch in December 2013.
Initially, the Gauteng government promised to refund R6.9 billion to those who paid e-tolls but later retracted this promise.
Maile revealed that the Gauteng Health Department faces R18 billion in litigation fees alone, posing a significant threat to the budget.
The DA responded to Maile’s statements by criticizing the province’s unsustainable spending patterns and mismanagement, noting deficits in consecutive financial years.
They called for immediate action to prevent devastating consequences for service delivery.
The DA’s shadow minister of finance, Ruhan Robinson, emphasized the need for reforms and criticized the provincial government’s focus on vanity projects.
He stated that while the e-toll debt servicing cost is significant, it is not the sole cause of the province’s financial woes.
The DA plans to monitor the situation and advocate for measures to protect Gauteng residents from government mismanagement.
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