The Gauteng Provincial Legislature’s Portfolio Committee on Cooperative Governance and Traditional Affairs (CoGTA) yesterday, 28 August 2025, conducted an oversight meeting with Mogale City Local Municipality and the Department of CoGTA as part of its continued work to assess the financial viability and service delivery performance of municipalities across Gauteng.
The Committee welcomed Mogale City’s steady progress in stabilising its finances and strengthening governance. According to the municipality’s report, Mogale achieved a R355.5 million surplus in 2025, supported by revenue growth to R4.57 billion and improved liquidity, with cash reserves rising to R299.9 million from R149.7 million the previous year. The municipality has also reduced borrowings from R156.3 million to R122.7 million, secured Eskom debt relief of R216 million, and now maintains up-to-date accounts with both Eskom and Rand Water. These developments, combined with a 90% revenue collection rate and improved compliance with conditional grants, reflect a municipality that is financially viable and on a sustainable path.
On service delivery, the Committee noted Mogale City’s targeted investments, including R8.8 million for pothole repairs, R12 million for refuse removal, R12 million for electrical network maintenance, and R33 million for chemical toilets. The municipality has also maintained a high utilisation of its capital budget, directing funds towards infrastructure renewal.
While recognising progress made, the Committee also flagged several ongoing challenges. These include delays in sewage projects such as the Flip Human Waste Water Treatment Works, losses in water and electricity supply estimated at 26% and 12% respectively, and the urgent need for renewal of ageing infrastructure across the municipality.
The Committee acknowledges the broader socio-economic pressures faced by communities in Mogale, including unemployment, homelessness, and substance abuse, which continue to strain service delivery efforts. Local churches and civic organisations have stepped in through initiatives such as the United Gathering of Shepherds to support vulnerable residents, highlighting the importance of partnerships in addressing these challenges.
The Department, led by MEC Hon. Jacob Mamabolo, reaffirmed Mogale City as a best-practice example of municipal financial recovery, noting its credible, funded budget and sound cash flow management.
Committee Chairperson, Hon. Mzi Khumalo, commended the leadership of Mogale City for steering the municipality towards recovery, while acknowledging the hurdles that remain. Quoting Executive Mayor Lucky Sele, he concluded: “We rose from the ash”. The Committee resolved to continue its comparative oversight work, using Mogale City’s financial turnaround as a reference point in assessing other municipalities across Gauteng, while ensuring that Mogale itself maintains momentum in tackling outstanding service delivery challenges.
As the country continues to commemorate Women’s Month, the Committee also salutes all women across the province; and reaffirms its commitment to advancing gender equality and ensuring that oversight continues to highlight the importance of inclusive, safe, and sustainable communities for women and girls.
For interview requests with the Chairperson of the Portfolio Committee please contact:
Ms Pfano Bulasigobo
Cell: 060 533 1982
E-mail: PBulasigobo@gpl.gov.za
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