MEC MAMABOLO UNVEILS R296M RESCUE PLAN TO REBUILD GAUTENG MUNICIPALITIES AND POWER THE FUTURE

Mpho Dube
5 minutes ago
3 min read

Gauteng commits R80m to energy solutions and promises 30-day contractor payments as Cogta targets stronger governance, jobs and service delivery

Gauteng Cogta MEC Jacob Mamabolo addresses stakeholders during a CIDB and Department of Public Works and Infrastructure engagement, reaffirming government’s commitment to building a capable and transformed construction sector.

By Mpho Dube, Editor-in-Chief

The Azanian | Truth. Fearless. Unfiltered.

AZANIAFROCOMEDIA – The Catalyst of Impact

JOHANNESBURG– Gauteng is investing in its foundations. The province has allocated R295.9m to strengthen struggling municipalities as part of a R680.5m budget for Co-operative Governance and Traditional Affairs tabled this week.

MEC Jacob Mamabolo told the Gauteng legislature on Thursday that the allocation is about rebuilding capacity, restoring services and creating conditions for growth. The budget forms part of a R1.9bn medium-term plan over three years.

We are not here to manage decline. We are here to build municipalities that work, deliver services and earn the trust of our people, Mamabolo said.

The push comes as the province moves to professionalise local government. All municipal manager and city manager positions are now filled, and 86% of senior management posts are occupied. Critical technical posts sit at 88%.

These improvements are strengthening institutional capacity and improving the ability of municipalities to deliver services effectively, Mamabolo said.

The budget targets the most urgent pressure points. R197.4m goes to development and planning, including R80m dedicated to the Gauteng Energy Response Programme to address municipal energy challenges. R165.6m is set for administration and R21.6m for Traditional Institutional Management to support cultural programmes and social cohesion.

Mamabolo also spoke directly to contractors this week, outlining a plan to open the door wider to business.

Infrastructure remains one of the most powerful drivers of economic growth, job creation and improved quality of life. That is why we are committed to building a capable, sustainable and transformed construction sector, he said.

To give industry certainty, the province will publish an Infrastructure Book to provide visibility of upcoming provincial and municipal projects.

This will strengthen planning, improve transparency and enable businesses to prepare for future opportunities, Mamabolo said.

He urged contractors to prioritise sound cash flow management, compliance, risk management, ethical conduct and stakeholder engagement.

These are not optional, they are essential to long-term success in our industry, he said.

On payments, Mamabolo made a firm commitment. As a provincial government, we remain committed to paying contractors within 30 days because delayed payments can place unnecessary strain on businesses and threaten their sustainability, he said. As a province, we ensure that we pay you within 30 days, and if we don’t, we can contribute to your financial and cash flow difficulties.

The move comes as Gauteng seeks to stabilise local government after a tough audit year. Only Midvaal and West Rand received clean audits out of 11 municipalities. The province says the Local Government Turnaround Strategy is now the platform to address debt and governance gaps.

This budget seeks not merely to fund programmes, it seeks to strengthen institutions, to improve governance, secure essential services, build resilience, Mamabolo said. It seeks to accelerate digital transformation and to restore public confidence and trust in local government.

With Intergovernmental Relations forums now bringing together province, municipalities and national departments, the message from Cogta is clear. One government, one plan, one focus, service delivery that works.