Ekurhuleni Budget Passed After ANC and DA Reach Agreement

by Daniel Perez - News Editor
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Ekurhuleni City Council Passes Budget After Deadlock

The City of Ekurhuleni successfully passed its 2024/2025 financial budget on June 27, 2024, following a series of failed attempts that threatened the municipality with administrative collapse. The council approved the budget after the African National Congress (ANC) and the Democratic Alliance (DA) reached a late-stage agreement, narrowly avoiding a provincial intervention that would have stripped the council of its powers.

Why the budget vote was deadlocked

The impasse stemmed from a lack of consensus among the city’s fragmented coalition government. According to News24, the budget failed to pass on three previous occasions as opposition parties and coalition partners blocked the minority government’s proposals. The primary point of contention involved disagreements over service delivery priorities and the financial management of the metro. Without an approved budget, the city faced a legal shutdown, which would have prohibited the municipality from spending funds on essential services like electricity, water, and waste removal after the July 1 start of the new financial year.

What changed to allow the budget to pass

The breakthrough occurred when the ANC, which leads the minority executive, reached a deal with the DA to secure the necessary votes. As reported by IOL, the compromise involved the ANC acceding to specific DA demands regarding fiscal oversight and infrastructure maintenance. While the ANC maintained its leadership position, the necessity of the DA’s support highlighted the city’s reliance on informal opposition cooperation to pass basic legislative requirements. This move effectively prevented the Gauteng provincial government from invoking Section 139 of the Constitution, which would have allowed the province to dissolve the council and take over administrative control.

Consequences for Ekurhuleni residents

The passage of the budget ensures that municipal employees will be paid and that day-to-day operations will continue without interruption. According to an explainer by Sowetan Live, the failure to pass a budget would have triggered a financial crisis, potentially leading to a total cessation of municipal services. Residents were spared from the uncertainty of a city under provincial administration, which would have effectively suspended local representative governance.

DA claims victory as Ekurhuleni finally passes R70bn budget

Comparison of municipal budget processes

The Ekurhuleni situation reflects a broader trend of political instability in South Africa’s major metros. The following table contrasts the legislative environment in Ekurhuleni with standard municipal budget requirements:

Factor Ekurhuleni Status (June 2024) Standard Municipal Requirement
Budget Deadline June 27 (Passed) Before July 1
Governance Structure Minority Coalition Stable Majority
Risk Level High (Provincial Takeover) Low (Stable Funding)

What happens next for the council

While the budget is secured for the 2024/2025 year, political analysts suggest the council remains fragile. According to Jacaranda FM, the ease with which the budget was blocked previously indicates that future legislative efforts will likely require similar, high-stakes negotiations between the ANC and DA. The city must now focus on executing the approved spending plans while navigating ongoing coalition tensions that continue to challenge the stability of the executive office.

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