EFF’s Nkululeko Dunga gets chop as finance MMC in budget-battered Ekurhuleni

EFF Gauteng Provincial Chairperson Nkululeko Dunga during the Economic Freedom Fighters (EFF) 10th Anniversary at FNB Stadium on July 29, 2023 in Johannesburg, South Africa. The EFF celebrated their 10-year milestone, also effectively kicking off the party's campaign ahead of the 2024 general elections. (Photo: Gallo Images / Frennie Shivambu)

By Nonkululeko Njilo

13 Jun 2024

EFF regional leader Nkululeko Dunga has been axed as finance MMC in Ekurhuleni. This could signal an end to the ANC-EFF marriage which has succeeded in removing DA mayors in Ekurhuleni, Johannesburg and Mogale City. It is also possibly an early indication that the red berets will not vote with the ANC when the Gauteng legislature has its first sitting on Friday, 14 June.

EFF regional secretary-general Nkululeko Dunga has been axed as mayoral committee member for finance in Ekurhuleni due to “unforeseen misalignments”.

This was announced on Wednesday night by mayor Nkosindiphile Xhakaza.

For more than a year the Ekurhuleni metro’s finances have been on a downward trajectory under Dunga’s leadership.

Dunga was in charge of the R51.2-billion budget in the city where the red berets co-govern with the ANC, with the assistance of other small political parties.

Last week, the council failed to meet a 30-day deadline to pass a budget for the 2023/24 financial year as a result of continued infighting between the ANC and EFF.

“This decision is aimed at ensuring that we can effectively fast-track the completion and approval of the annual budget, a critical task for the continued development and growth of our city. Furthermore, there is a critical need to urgently turn around the concerning financial position of the city,” Xhakaza said.

Before Dunga’s axing, Xhakaza reportedly took away some of his powers, including the removal of the Department of Information and Communication Technology from his portfolio.

Xhakaza’s announcement does not come as a surprise, particularly among opposition political parties, which had voiced concerns about the municipality’s liquidity amid ongoing financial and governance woes.

The IFP’s Gauteng secretary, Alco Ngobese said: “We will keep a close eye on the latest developments, but taking into account all the tension and commotion that took place in our last three council meetings, we are not surprised, we saw it coming.”

Ekurhuleni Doctor Xhakaza Nkosindiphile Xhakaza at an ANC Ekurhuleni media briefing on governance development within the city, in Germiston on 5 March 2024. (Photo: Gallo Images / OJ Koloti)

In April 2024, Daily Maverick reported that Xhakaza had been concerned about the metro’s state of finances, particularly because it had not been collecting enough revenue and because the finances were not aligned with the City’s priorities.

Read more in Daily Maverick: Ekurhuleni mayor acknowledged financial woes, plans to 'pull out all stops' in service delivery drive

This admission came despite the EFF’s insistence that there was no financial crisis.

In the 2022/23 financial year, Ekurhuleni was one of only two metros in South Africa to receive a clean audit outcome. A year later, it had lost its status, with its financial predicament seemingly deepening.

The Auditor-General had flagged concerns about Ekurhuleni’s irregular expenditure of more than R20-million and noted the City’s weak internal mechanisms on contract, procurement and supply chain management.

Gauteng government

Dunga’s axing could signal an end to the ANC-EFF marriage which has succeeded in removing DA mayors in Ekurhuleni, Johannesburg and Mogale City. It is also possibly an early indication that the red berets will not vote with the ANC when the Gauteng legislature has its first sitting to elect a premier and speaker, among other key positions.

The ANC won just 34% of the vote, down from 50% in 2019.

At a media briefing last week, EFF deputy leader Floyd Shivambu said the party would not be a part of a government of national unity (GNU) if it involved the DA or Freedom Front Plus. This is despite the fact that the EFF in 2016 had worked with the DA in the Gauteng metros of Joburg, Tshwane and Ekurhuleni.

“We do not want to form part of a government with representatives of the white colonial and apartheid system,” Shivambu said.

Meanwhile, TimesLIVE reports that the ANC in Gauteng has resolved to terminate its relationship with the EFF in metros.

Two weeks ago, EFF leader Julius Malema warned Xhakaza to reinstate Dunga’s powers “otherwise we are putting a motion of no confidence against him or the ANC”.

Malema further said that in negotiations to form a government in the province the red berets would demand that Dunga’s powers are reinstated as a starting point.

“Elections are over, we are now on him. He must return the powers of the MMC to show signs of being honorable… and that is going to be part of what we’re going to discuss ,” Malema said.

On Wednesday, ANC provincial spokesperson Lesego Makhubela confirmed that talks had taken place between the ANC and EFF, but no agreement had been reached.

One of the EFF’s conditions was to return Dunga’s powers.

“We are not going to enter into these discussions with salt in our hands, we are not going to be hunting with salt, we are not ambitious potholes, we have a responsibility to lead this province and ensure that the will of the people is respected, but we are not going to be blackmailed into doing that,” Makhubela said.

“We will be negotiating with all political parties until at the doorstep of the sitting tomorrow.”

EFF Gauteng chairperson Nkululeko Dunga at the EFF’s 10th anniversary event held at FNB Stadium in Johannesburg on 29 July 2023. (Photo: Gallo Images / Frennie Shivambu)

Governance cracks

Although the EFF and ANC have been coalition partners in Ekurhuleni, there had been cracks in the relationship for a while. In June 2023, the ANC in the metro penned a letter to the party’s provincial leadership, asking that it reconsider the coalition. It warned that the ANC was at risk of losing its support base to the EFF if the coalition remained in place.

Little or nothing was done by the leadership. While the ANC’s National Executive Committee has supported abandoning its coalitions with the EFF, the Gauteng ANC was reportedly reluctant to act.

ANC chief whip in Ekurhuleni, Jongizizwe Dlabathi, welcomed Xhakaza’s decision to axe Dunga, which he said was endorsed following a governance update report by the party’s provincial executive committee.

“The report pointed to fundamental weaknesses on how the budget process has been handled, as well as the seriously regressing financial position of the City, a matter we have long raised with no notable effort to turn around the dire situation,” Dlabathi said.

“We firmly believe that every member of the mayoral committee must be committed to a coordinated way of governance, under the guidance of the executive mayor, including accountability, which was not the case.” DM

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