The City of Ekurhuleni’s political and governance crisis has deepened after the municipality’s proposed 2026/27 budget failed to secure council approval for a fourth time, prompting renewed criticism from opposition parties and raising concerns about the metro’s ability to meet statutory deadlines.
The latest rejection places the ANC-led coalition under mounting pressure to secure support for a lawful budget before the end of June, failing which the city could face provincial intervention in terms of Section 139(4) of the Constitution.
The Economic Freedom Fighters (EFF) and ActionSA, two of the largest opposition parties in the metro, have blamed the ANC administration and Executive Mayor Nkosindiphile Xhakaza for the deadlock, accusing the coalition of failing to produce a budget that addresses residents’ needs while ignoring proposals put forward by other parties.
In a statement issued on Thursday, EFF Gauteng Chairperson Nkululeko Dunga said the repeated rejection of the budget demonstrated that the ANC had lost the confidence of a majority of councillors.
“The ANC must now confront the reality that it governs Ekurhuleni as a minority administration. A government that cannot pass its own budget on three separate occasions cannot continue to behave with arrogance, entitlement and disregard for the views of other parties represented in council,” said Dunga.
The EFF said it had consistently opposed the budget because it failed to adequately address deteriorating infrastructure, poor service delivery and the city’s worsening financial position.
According to the party, Ekurhuleni requires a developmental budget that prioritises infrastructure maintenance, service delivery improvements, the insourcing of municipal workers and investment in working-class communities.
The party also linked the repeated rejection of the budget to what it described as a lack of confidence in Mayor Xhakaza’s leadership.
“The continued rejection of this budget is also a reflection of the lack of confidence in the political leadership of Executive Mayor Nkosindiphile Xhakaza. The EFF maintains that Mayor Xhakaza has failed to provide the leadership necessary to unite council behind a programme for the city,” said Dunga.
The budget impasse has been unfolding for weeks. Earlier attempts to pass the budget failed after opposition parties objected to tariff increases, spending priorities and what they described as unrealistic assumptions regarding revenue collection.
Reports from previous council sittings indicate that the proposed budget was voted down multiple times despite revisions by the administration, exposing the fragile nature of the ANC-led coalition in the metro.
The latest rejection was further compounded by opposition from ActionSA, which said it had voted against the budget for a fourth consecutive time because the coalition had failed to address concerns repeatedly raised during negotiations.
ActionSA Ekurhuleni Mayoral Candidate Xolani Khumalo said the party had engaged the administration in good faith but could not support a budget that neglected workers and imposed additional financial burdens on residents.
“The ANC-led coalition in Ekurhuleni has failed to present a budget that prioritises the interests of residents. As a result, ActionSA has, for the fourth time, rejected the proposed budget,” Khumalo said.
The party said its support for the budget hinged on two key conditions.
Firstly, ActionSA wants the city to implement a long-standing council resolution to insource workers and reduce dependence on outsourced service providers. Secondly, the party opposes increases to municipal tariffs beyond regulated adjustments, including the 9.01% electricity tariff increase approved by the National Energy Regulator of South Africa (NERSA).
ActionSA argued that residents were already struggling with the rising cost of living and could not absorb additional municipal increases.
The issue of insourcing has emerged as one of the most contentious aspects of the budget debate.
According to ActionSA, council adopted a resolution in 2021 supporting the insourcing of workers, but implementation has yet to occur. The party warned that unless funding is specifically allocated in the new budget, the process could be delayed indefinitely.
“Should this budget fail to appropriate funds for insourcing, there will be no insourcing in the next financial year,” Khumalo said.
He added that ActionSA wants the city to make a firm commitment to insourcing in the 2026/27 financial year, with positions advertised as early as July.
The party also criticised the administration over employment commitments previously made by the mayor.
ActionSA noted that approximately 600 jobs announced by Xhakaza in 2025 were subsequently reduced by half during the city’s 2026 adjustment budget process.
The budget deadlock comes at a critical time for the municipality.
In terms of the Municipal Finance Management Act, municipalities are required to approve budgets before the start of the new financial year. Failure to do so could trigger intervention by the Gauteng provincial government and create uncertainty regarding service delivery programmes, infrastructure projects and operational spending.
The EFF warned that the city was running out of time.
“The municipality now faces a narrowing window to adopt a lawful budget before the end of June. Failure to do so may trigger intervention in terms of Section 139(4) of the Constitution, provincial intervention in local government, and expose the city to serious governance, financial and service delivery consequences,” said Dunga.
Despite their opposition, both the EFF and ActionSA said they remain willing to support a revised budget if their concerns are addressed.
The EFF said it would back a “funded, lawful and developmental budget” that places residents ahead of political interests, while ActionSA said it remains committed to supporting a budget that balances municipal sustainability with the economic realities facing households.
Meanwhile, VF Plus councillor and Ekurhuleni caucus leader, Jennifer Glover, said the VF Plus in the Ekurhuleni Metro will not support a budget that fails the residents.
“Ekurhuleni Metro council meeting. Council time wasted, residents ignored. The VFPlus in the Ekurhuleni Metro will not support a budget that fails the residents,” said Glover.
With the statutory deadline fast approaching, the ANC-led coalition now faces the difficult task of negotiating support from opposition parties or risk plunging one of South Africa’s largest metropolitan municipalities into an unprecedented constitutional and financial crisis.
At the time of publication, the ANC in the region had not yet commented on the matter.
