Chris Hani District Municipality posts R116m deficit for year ending June 2025

The Chris Hani District Municipality recorded a R116.9 million deficit for the financial year ending 30 June 2025, according to its latest audited Annual Financial Statements. See the financial statement here: CHDM-Adjusted-AFS-2025-Financial-Statements-GRAP-20251128-09H43

The deficit relates strictly to the 2024/2025 financial year and does not reflect figures beyond June 2025.

From surplus to deficit in one year

The financial statements show a significant reversal from the previous financial year.

For the year ending 30 June 2024, the municipality reported a surplus of R413 million.

However, for the year ending 30 June 2025, expenditure exceeded revenue, resulting in a R116 945 250 deficit — a financial swing of more than R529 million year-on-year.

Total revenue for 2024/2025 amounted to R1.9 billion, while total expenditure reached R2.02 billion.

Debt impairment and write-offs weigh heavily

A major factor contributing to the deficit was debt-related losses recorded during the 2024/2025 financial year.

The statements reflect:

• R408 million in debt impairment

• R368 million in bad debts written off

These figures relate to money deemed unlikely to be collected or officially removed from the municipality’s books during the financial year ending June 2025.

Revenue and spending pressures

Government grants and subsidies remained the municipality’s largest source of income at R1.3 billion, while service charges contributed R451 million.

Employee-related costs totalled R453 million, and councillor remuneration amounted to R14.2 million for the same financial period.

Total expenditure increased significantly compared to the previous financial year.

Cash position at year-end June 2025

The Cash Flow Statement shows the municipality had R18 million in cash and cash equivalents as at 30 June 2025, down from R20.4 million at the end of June 2024.

This figure represents the municipality’s position at the close of the 2024/2025 financial year.

Municipality considered a going concern

Despite the deficit recorded for the year ending June 2025, the Accounting Officer stated in the financial statements that the municipality is considered a going concern and is expected to continue operating.

What this means

The audited figures provide a snapshot of the municipality’s financial health as at 30 June 2025.

They do not reflect performance for the current 2025/2026 financial year, which began on 1 July 2025.

However, the deficit and financial pressures recorded for 2024/2025 form the starting financial position for the current financial cycle.