Gauteng bleeding billions while young people pay the price, warns Finance MEC

Newly appointed Gauteng Finance MEC, Nkululeko Dunga, has painted a grim picture of the province’s finances, warning that wasteful expenditure, unpaid invoices and failing municipalities are crippling service delivery in the country’s economic hub.

Speaking at Dube Hostel in Soweto on Thursday, Dunga said ordinary residents are carrying the burden of a government system plagued by under-spending, weak financial controls and mounting debt.

“The finances of Gauteng belong to the people…they belong to the unemployed young person searching for opportunities, the small business owner waiting to be paid by the government, and communities waiting for roads, clinics, housing and reliable public services,” he said. 

Despite overseeing a massive R179.2 billion provincial budget for the 2026/27 financial year, Dunga admitted Gauteng is under severe financial pressure. 

One of the biggest concerns is the province’s unpaid bills. The MEC revealed that Gauteng departments owe service providers around R9.3 billion, with nearly R5 billion overdue by more than 30 days. 

Dunga also discloses that the province is sitting with a staggering R36.5 billion in unresolved irregular expenditure, much of it linked to the Health and Education departments. 

He warned that officials implicated in procurement failures and financial misconduct could face consequences, declaring that “heads must roll where necessary.”

At the same time, the province is grappling with mounting municipal debt that has ballooned, deteriorating infrastructure and municipalities struggling to pay utilities such as Eskom and Rand Water.

“We have already issued formal letters and assessment reports to these municipalities outlining concerns relating to liquidity pressures, recurring operating deficits, non-payment of Eskom and Rand Water obligations, governance failures and non-compliance with approved Financial Recovery Plans,” said Dunga. 

He also expressed concern over the province’s worsening unemployment crisis, with Gauteng’s expanded unemployment rate now sitting above 40%. 

While Education and Health account for more than R137 billion of the provincial budget, Dunga admitted residents are still dealing with overcrowded classrooms, deteriorating hospitals and crumbling infrastructure.

Dunga said his department plans to tighten financial controls, recover lost revenue, improve payment systems and crack down on corruption and wasteful expenditure.

“We cannot continue operating within a system where communities experience collapsing infrastructure while government records both over-expenditure and under-expenditure in critical sectors,” he said.

The MEC added that Gauteng Treasury would push for stronger oversight of municipalities, infrastructure projects and procurement systems, while expanding artisan training programmes to help repair public infrastructure and create jobs.

“The objective is to reduce leakages and strengthen transparency. improve cash management and to enhance accountability across provincial collection revenue systems,” said Dunga.

PICTURES| During the media briefing at Dube Hostel in Soweto, MEC of Finance @DungaLeko announced intensified interventions to address unpaid invoices, revenue leakages and financial challenges affecting municipalities and provincial departments.#GrowingGautengTogether pic.twitter.com/SIVX5oIWer

— Gauteng Treasury (@GautengTreasury) May 14, 2026