Gauteng Finance MEC Lebogang Maile
By Thabo Mosia
Gauteng Finance MEC Lebogang Maile has strongly refuted claims that the province faces potential bankruptcy and a R6 billion shortfall by June 2025. Speaking during a media briefing in Johannesburg on Tuesday, Maile provided a detailed overview of the province’s financial position and emphasised that while Gauteng operates under a constrained fiscal environment, bankruptcy is not on the horizon.
“Gauteng Is Not Facing Bankruptcy”
During the briefing, Maile dismissed reports suggesting an impending financial crisis, calling them misleading and detrimental to public confidence.
“These articles merit correction as they are grounded on an erroneous premise that will serve to sow despondency amongst the residents and businesses in the province,” Maile stated. “While these assertions are not new and have previously been refuted, there is a need to provide a comprehensive response in the public interest, but in line with accountability and transparency.”
Maile clarified that the provincial government is managing its finances within the allocated budget and has made significant progress in addressing its obligations, including the contentious e-toll debt.
Current Financial Status
As of November 2024, Gauteng’s overall expenditure stood at R115.2 billion, or 68% of the province’s R169 billion adjusted budget. This leaves an estimated R53.9 billion available for the remaining months of the financial year, ending in March 2025.
The Finance MEC highlighted that 80% of the expenditure is driven by the departments of health and education.
Health Department
The Gauteng Department of Health has spent R46.1 billion (69.8%) of its R66.17 billion adjusted budget. The bulk of this expenditure is attributed to critical services, including:
• Central Hospital Services
• District Health Services
• Provincial Hospital Services
The department also received an additional R600 million during the 2024/25 adjusted budget to offset compensation pressures for healthcare workers.
Education Department
Similarly, the Gauteng Department of Education reported an expenditure of R45.9 billion (69.5%) of its R66.1 billion adjusted budget. High-spending areas include:
• Public Special Schools
• Early Childhood Development (ECD) programmes
Goods and services expenditure amounted to R5 billion, largely attributed to accruals from the previous financial year.
Addressing the E-Toll Debt
Maile acknowledged that the provincial government’s finances are under pressure, primarily due to the R20.1 billion e-toll debt obligation, which includes accrued interest.
In September 2024, Gauteng made its first instalment of R3.8 billion, comprising:
• R3.2 billion for historical debt
• R546 million for maintenance-related costs
“The obligation to service this debt has necessitated the implementation of a host of reforms and measures to maintain a healthy fiscal environment that will be both sustainable and manageable in the long term,” Maile explained.
Budget Adjustments and Restructuring
The 2024/25 provincial budget increased by R3.4 billion during the adjustment process. This included:
• R1.2 billion in rollovers
• R2.1 billion made available through provincial savings and revenue adjustments
Maile assured that these adjustments are part of broader efforts to manage resources effectively while meeting debt obligations and maintaining essential service delivery.
Refuting Bankruptcy Claims
Despite his earlier caution that Gauteng could be “R6 billion in the red,” Maile clarified that this was a hypothetical projection based on worst-case scenarios and did not reflect the province’s current financial status.
“The issue of possible bankruptcy by June 2025 has no merit as the budgets for the 2025/26 financial year have not yet been finalised,” he said.
He added that the provincial government is employing a proactive approach to address fiscal challenges, with an emphasis on accountability and transparency.
Future Challenges and Opportunities
Maile acknowledged that meeting the R20.1 billion e-toll debt obligation remains a significant challenge. However, he expressed confidence in Gauteng’s ability to navigate these pressures through prudent financial management and budget prioritisation.
“To meet our obligations to repay this debt, we have had to make very difficult decisions and reorientate our budget priorities, which necessarily will have an impact on the fiscal,” Maile stated.
Opposition Reactions
The Democratic Alliance (DA) has criticised Gauteng’s fiscal management, warning of potential risks to essential services if spending pressures are not addressed. DA finance spokesperson Adriana Randall cautioned that severe budget constraints could undermine the province’s ability to maintain service delivery in healthcare and education.
“The Gauteng provincial government needs to be more transparent about how it plans to balance its books without compromising essential services,” Randall said.
Public Confidence and Accountability
Maile emphasised the importance of rebuilding public trust through open communication and responsible governance.
“We initially thought maybe we should just issue a statement, but it would be like we are running away from accounting,” he said. “Our books are in order, and we remain committed to ensuring the financial sustainability of this province.”
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