The City of Ekurhuleni has set the record straight regarding its bulk utility debt, assuring residents of its commitment to fiscal sustainability and uninterrupted service delivery.
The clarification follows commentary regarding the City of Ekurhuleni’s total outstanding creditor balance which stood at approximately R8 billion at the end of May 2026.
“Approximately 50% of this amount related to current invoices that had not yet reached their payment due dates. It is therefore important to distinguish between the City’s total creditor balance and amounts that are overdue.
“As at 23 July 2026, the amount owing to Rand Water was R524 228 547. This amount relates to the June 2026 invoice, which is not yet due for payment,” the city said in a statement.
The City of Ekurhuleni noted that its credit balance with Eskom stands at some R5 118 878 869, consisting of approximately R2.8 billion relating to the current invoice, which is not yet due for payment; and approximately R2.2 billion relating to historical invoices being settled in accordance with an agreed payment arrangement.
“The City remains fully compliant with the terms of the payment arrangement concluded with Eskom. During the final quarter of the 2025/26 financial year, the City paid approximately R11 billion to creditors.
“These payments demonstrate the City’s continued efforts to meet its financial obligations, manage its creditor position and improve financial stability,” the statement read.
Revenue collection and credit-control measures are being intensified to improve the municipality’s cashflow and reduce outstanding balances.
“[The] year-end financial management programme is also focused on strengthening liquidity, improving cash-flow management and ensuring that financial obligations are met sustainably.
“Creditor balances must be presented accurately and in their proper financial context. Current invoices that are not yet due, as well as historical amounts being settled under agreed payment arrangements, should not be conflated with unpaid or defaulted debt,” the statement continued.
The city warned that financial matters should not be “misrepresented or misconstrued” as this may “unnecessarily undermine public confidence and the City’s relationships with strategic service providers”.
“The City remains committed to prudent financial management, honouring its payment commitments and maintaining constructive relationships with Eskom, Rand Water and other creditors, while safeguarding the uninterrupted delivery of essential services to residents,” the statement concluded. – SAnews.gov.za
