Finance and Economic Development MEC Lebogang Maile has warned that Gauteng could find itself “R6 billion in the red” by June if urgent financial caution is not exercised.
This comes after R15 billion in budget cuts, which has left the province’s finances precarious.
Maile has identified the Gauteng Department of Health as the primary driver of the province’s financial problems.
The department’s persistent non-compliance with supply chain regulations has been cited as a critical threat to Gauteng’s overall financial stability, with corruption being the root cause of the crisis.
Despite these challenges, Maile has assured the public that the provincial government is taking every possible measure to steer clear of bankruptcy.
However, Professor Mark Swilling, a sustainable development expert at Stellenbosch University, expressed scepticism about the province’s ability to manage its finances on national television.
Swilling has warned that Gauteng’s bankruptcy warning comes as no surprise, given the province’s financial troubles have been brewing for years.
He also pointed out that Gauteng is at a point where bailouts from the national government may no longer be a viable solution.
The implications of Gauteng’s potential bankruptcy are severe. If the province were to go bankrupt, the national government would face a debt default, which would have far-reaching consequences for the country’s economy.
“I find it hard to believe that he expects people listening to him to be rest assured that Gauteng is well run.
“We have known for several years that that is not true, especially concerning certain key departments like the Department of Health, so what we need is a lot more than platitudes,” Swilling reportedly said.
As the province struggles to manage its finances, questions remain about whether Gauteng could truly face bankruptcy in 2025.
The Department of Health has not responded to Independent Media at the time of publication.