The Gauteng government has expressed confidence that the City of Tshwane’s financial turnaround strategy.
A team from the municipality met with the Gauteng provincial treasury MEC Lebogang Maile to appraise him on how the newly installed coalition government that includes the ANC, EFF and Action SA planned on reigning in the current financial decline which has been going on for just under a decade.
Mayor Nasipha Moya and her deputy Bonzo Modise who is also the Finance MMC led the Tshwane delegation and said a 100 day turnaround plan was already in place.
The city is owed R24,3 billion by non-paying customers (72% of the debt is households, 24% business) while its credit book currently stands at R11 billion with a R6,7 billion being its biggest debt.
“The meeting also seeks to make a comprehensive assessment of the role that the Gauteng Treasury should play in stabilising the finances of the City as a means of improving its audit outcomes and financial governance,” said Maile with the Tshwane team.
While Maile was happy with the city’s commitment towards debt repayment, he raised concerns about its inability, over the years, to spend its grants which it now risks forfeiting.
“It is commendable that the city has honoured its arrangement to the bulk water utility ( Randwater which it owes a little over half a billion rand)
“While spending on internally generated funds is progressing very well at an average of 32 percent, the city of Tshwane average capital spending is 14 percent as of 30 September 2024. This level of spending is considered poor and concerning considering that the first quarter of the 2024-2025 financial year has lapsed. Further more the lack of spending on the urban settlement development grant is a cause for concern. The USDG is a substantial capital allocation to metropolitan municipalities and the only supplementary grant at local government level and the city’s poor spending on this and other grants significantly increases the likelihood that some funds may be forfeited during the stopping of funds and reallocation of funds,” said Maile urging the municipality to avoid losing the funds.
The city also committed to not reneging on a five year wage deal with its work force.
On Wednesday the city’s new mayor and her executive were expected to announce self imposed targets to be achieved within a set period of 100 days.