Reports alleging that
the City of Tshwane has “approached National Treasury for help to draft a
financial [recovery] plan” are misleading.
The Executive Mayor has on numerous occasions highlighted the poor financial
position inherited by this administration after the August 2016 local
government elections. This is evidenced by the R2 billion unauthorised
expenditure in the 2015/16 financial year alone.
The City has, to date, made great strides towards stabilising its finances
through strengthening control of supply chain processes, slashing unauthorised
and unnecessary expenditure and extricating the City from unlawful and
expensive contracts like the PEU contract, amongst other things.
This has contributed to our successes in correcting the R2 billion deficit we
inherited and has resulted in the surplus in the last financial year.
It is common cause that a long-term financial plan is an essential tool that a
municipality needs to facilitate financial sustainability and resilience and
improve the municipality’s capacity to fulfil its developmental and service
delivery mandate on a sustainable basis.
National Treasury was approached to assist in developing a holistic long-term
financial plan given that they had already engaged a service provider to assist
in their oversight role.
The simple fact is that the City approached National Treasury requesting use of
existing tools within their purview that would be beneficial to us in our
ongoing efforts to cultivate a long-term recovery plan so that we may build on
our current success and continue to provide better services to the people of
Reports suggesting that the City is seeking “rescue” from Treasury are simply
not true and a product of not having all the information on hand.
Nevertheless we have a duty to correct any misinformation in the public space
and we do so to ensure that our residents and other stakeholders have the right
Important progress was made to reduce such expenditure in the 2016/17 financial
year and to stabilise the financial position of the City.
The next important step was to compile a long-term financial plan to put a
strategy together to shape the financial targets of the future City of Tshwane.
The plan aims to align the City’s growth objectives to available resources and
purposefully put measures in place to generate cash-backed internal surpluses
to fund investment in infrastructure in future budgets.
The plan is still in a draft stage and will, once finalised, be presented to
the Mayoral Committee for consideration.
Stabilisation efforts remain a priority for the Msimanga administration and
misleading reports about the City’s financial position are as unhelpful as they