Gauteng govt faces potential bankruptcy by 2025 - MEC

Gauteng could face bankruptcy by next year if the provincial government doesn't exercise caution with its finances, according to finance and economic development MEC Lebogang Maile.

- Molefe Seeletsa

Maile sounded the alarm on Wednesday over Gauteng's finances, warning the government could be on the verge of collapse.

However, he assured that the finances "were in good hands".

"If we are not vigilant and we are not careful, the Gauteng government could be bankrupt by next year; it could be R6 billion in the red if we are not careful.

"But I don't know, as I said, the public funds are in good hands and we are looking at balancing all of that to make sure that we don't have problems," Maile said.

He disclosed that seven out of Gauteng's 14 departments, including economic development, achieved clean audits.

However, five departments health, human settlements, social development, roads and transport, and sports, arts, culture, and recreation - received unqualified audit opinions with findings indicating noncompliance with supply chain regulations.

"[These departments] have a challenge with consequence management, indicating that recommendations from the completed investigations have not been implemented.