What EMLM’s 2024/25 Annual Report Reveals About Finances, Infrastructure and Risks

Enoch Mgijima Local Municipality has released its consolidated 2024/2025 Annual Report, offering a detailed account of the municipality’s financial position, service delivery performance, infrastructure challenges and audit findings for the year ending 30 June 2025.

The document includes:

• The EMLM Annual Report

• The Auditor-General’s Report

• The Annual Financial Statements

Together, these reports provide one of the most comprehensive overviews of the municipality’s operations and governance for the past financial year.

Financial Position

The report reflects a R416 million deficit for the 2024/25 financial year. It also records:

• R326 million in debt impairment, indicating significant challenges in collecting billed revenue

• R37.59 million in fruitless and wasteful expenditure, largely linked to interest on late payments

• Ongoing electricity revenue shortfalls, with losses ranging between R21 million and R23.5 million per month

The report further notes that the 2024/25 budget was assessed as unfunded by Eastern Cape Provincial Treasury.

Electricity and Infrastructure Challenges

Electricity remains one of the municipality’s most significant risk areas. The report identifies:

• High prevalence of illegal electricity connections

• Low arrest and conviction rates for electricity theft

• Infrastructure deterioration due to limited preventative maintenance

• Open pillar boxes and faulty substations posing safety risks

• Certain substations classified as high risk

The municipality states that staff are largely engaged in fault repairs rather than scheduled preventative maintenance due to resource constraints.

A smart meter rollout is underway, aimed at improving revenue collection and network control.

Service Delivery and Performance

Overall service delivery performance for the year is recorded at 80%, with variations across departments. Engineering Services achieved 64% of its targets.

The report also highlights that most municipal cemeteries are nearing full capacity, with limited land available for expansion in certain areas.

Audit Findings and Governance

The Auditor-General’s findings are included in the consolidated document, alongside an Audit Action Plan outlining corrective measures.

Council oversight structures, including the Municipal Public Accounts Committee, are detailed in the governance section of the report.

Public Comment Period

Residents are encouraged to review the full consolidated document and submit comments.

All comments must be addressed to:

The Municipal Manager
Enoch Mgijima Local Municipality
Owen Street, Komani

Submissions must be delivered before 28 February 2026.

📎 Download the Full Consolidated Report

👉 DOC-20260211-WA0211. (3)

The 2024/2025 Annual Report forms part of the municipality’s accountability and transparency process. Residents wishing to understand the municipality’s financial position, infrastructure challenges and governance performance are encouraged to review the document and participate in the comment process.