Ekurhuleni mayor Nkosindiphile Doctor Xhakaza says the city has moved to fix a compromised billing system that contributed to significant revenue losses as part of a broader effort to stabilise municipal finances and restore governance.
Speaking in a Sunday World Podcast interview, Xhakaza revealed that the metro had uncovered manipulation within its billing processes, particularly affecting large power users, and had since taken steps to correct the system.
“There was manipulation in the billing system,” he said. “We have restored the system back to the energy department, and today billing accuracy is sitting at about 97%.”
The billing system is central to the city’s revenue collection, and inaccuracies can have a major impact on its financial position.
Pattern of governance failures
Xhakaza said even small percentage deviations in billing accuracy translate into substantial losses.
“For a budget of our size, even a 1% variance can mean hundreds of millions of rand,” he said, highlighting the scale of the problem the city had been facing.
The mayor said the issue formed part of a broader pattern of governance failures that affected the municipality before his tenure began in April 2024.
He was brought in, he said, to deal with revenue shortfalls, system breakdowns, and administrative weaknesses.
“I took over because of these issues,” he said. “The council wanted someone decisive to deal with governance lapses and stabilise the city.”
The billing problems, he said, were not only technical but also linked to institutional weaknesses, including poor oversight and internal dysfunction.
Tightening monitoring
Efforts to correct the system have included returning billing control to the energy department, tightening monitoring processes, and improving data accuracy.
The city is also working to ensure that improved billing translates into actual revenue collection.
“It is one thing to fix the billing system,” Xhakaza said. “It is another thing to go and collect the money.”
The mayor indicated that restoring the integrity of the billing system was critical for improving service delivery, as municipal operations depend heavily on revenue generated from electricity and other services.
The intervention faced resistance. Xhakaza said attempts to address the billing issues triggered pushback, including criticism over disciplinary action taken against senior officials.
“When we acted, there was a fightback,” he said, referring in particular to the suspension of the city’s chief information officer. “But you cannot fix the system without dealing with those who were central to it.”
He said some officials had used legal avenues to delay accountability processes, complicating efforts to implement reforms.
“There are labour laws and processes that must be followed,” he said. “But some people exploit these processes to delay outcomes.”
Despite these challenges, the mayor maintained that progress had been made in stabilising the city’s financial systems and improving operational performance.
Reducing revenue leakages
The improvements in billing accuracy, he said, were already helping to reduce revenue leakages and strengthen the city’s financial position, although he cautioned that the full benefits would take time to materialise.
“These changes will not reflect overnight,” Xhakaza said. “But they are necessary to put the city on a sustainable path.”
The billing system overhaul forms part of a wider set of reforms aimed at restoring governance and accountability in Ekurhuleni, including the introduction of internal monitoring systems and a more hands-on approach to service delivery.
With local government elections approaching, the effectiveness of these reforms is likely to come under increasing scrutiny, particularly as residents continue to grapple with service delivery challenges and infrastructure pressures.
Xhakaza said the administration’s focus remains on ensuring that financial systems function properly and that revenue is used to support service delivery.
“If the system is working, we can deliver,” he said. “If it is not, everything else is affected.”
