Gauteng Finance MEC Lebogang Maile has made an impassioned plea to communities businesses, government departments to pay for services rendered by municipalities. The MEC addressed media in Johannesburg on Sunday, where he delivered the consolidated quarterly state of municipal finance report covering the first half of the 2025/26 financial year which ended on 31 December 2025.
“As at 31 December 2025, Gauteng municipalities reported an aggregate debtor’s balance of R165.7-billion. A significant portion of the total debtor balance is related to households at 73.3%, commercial at 23.2% and state organs at 3%,” Maile said.
However, Maile emphasised that municipalities had a responsibility to put their house in order by working ‘on the credibility of their billing systems’. He said the problem of disputes between municipalities and their stakeholders would persist if the billing crisis was not resolved.
Low expenditure
Shedding light on the expenditure challenges besetting municipalities in the province, the MEC said aggregate municipal expenditure remained below 50% for most municipalities, except Rand West City at 68%. He said historical trends indicated municipalities were likely to spend at least 85% of their budgets by year-end.
“Overall municipal expenditure as of 31 December 2025 is reported at an average of 34%. The spending is concerning and low,” Maile said.
Municipalities had to prioritise the renewal of existing infrastructure assets in their adjusted budgets for the 2025/26 fiscal year, the MEC said. “Specifically, they are mandated to allocate 60% of their capital budget to the renewal of these assets and 40% to new infrastructure projects.”
Councillors among culprits
Municipal councillors were also not spared as Maile warned that government was also addressing outstanding debt owed to municipalities by public office bearers.
“As at 31 December 2025, municipal councillors and officials collectively owed municipalities approximately R165.7-million, with the largest balances recorded in the City of Johannesburg (R74.8-million), the City of Tshwane (R36.2-million), and the City of Ekurhuleni (R22.9 million). Formal correspondence has been issued to municipalities to enforce recovery measures and ensure compliance by councillors and officials,” Maile said.
He said in total councillors in various municipalities in Gauteng owed municipalities an aggregated amount of R5.5-million.
Debt Management Committee
Maile said an intergovernmental structure known as the Debt Management Committee (DMC) had been established to support municipalities. “Since the establishment of the DMC in the 2017/18 financial year, municipalities have received a cumulative total of R21.04-billion in payments from the Gauteng Provincial Government.
“This track record demonstrates that the DMC has been an effective platform for systematic debt reduction, account verification, and structured settlements, reinforcing the commitment to honour our obligations and supporting municipal financial sustainability.”
