Capital spending: City of Tshwane implementing tighter controls

Media statement                                                                                          14 February 2024

Cllr Cilliers Brink

Executive Mayor of Tshwane

Yesterday, the office of Gauteng Premier Panyaza Lesufi claimed that R2,646 billion in grants had been withdrawn from the City of Tshwane by the national government, nearly the whole of the City’s capital budget. The claim was made on X by an official in Lesufi’s office, Kgosi Maepa, and Lesufi later echoed these remarks in a television interview.

No such thing has happened, although the City of Tshwane is being asked by the National Treasury to account for a much smaller unspent portion of our capital grants.

Kgosi Maepa is the former ANC Caucus leader in Tshwane. He often makes outright false statements on social media, usually under the description of “breaking news”. He is someone who excels in playing the fool and is usually treated accordingly. But yesterday, a political reporter from SABC News reposted Maepa’s allegation as his own without fact-checking, spreading false information, quoting wrong figures and generally acting as if they were the mouthpiece of this clearly orchestrated political attack against the City.

Attached to the post was a letter by the National Treasury to the City, which it would seem very few commenting on the issue bothered to read. The letter does not say that the City would forfeit in excess of R2 billion. The letter does call on the City to account for the unspent portion of these grants, and to explain why some of this money (about R635 million) should not revert back to the national fiscus.

To be sure, we take this risk very seriously as we know that the national government is in a similar position as the City – in serious financial trouble and is looking to claw back money from municipalities ahead of the Finance Minister’s budget speech.

We will give a full account of our situation to the National Treasury and outline plans to spend our full capital allocation. This response is due by the end of the week, along with many other municipalities’ responses (although, of course, only the letter to the City of Tshwane was leaked).

We know that spending our full capital budget is essential to improving infrastructure for service delivery, especially to the poor. We are equally adamant that this spending must procure value for people’s money, and not incur irregular, fruitless and wasteful expenditure.

Some of the delays on our capital projects have been occasioned by last year’s unlawful strike. At the time, Premier Lesufi was nowhere to the found to assist the City, although our expectations were low from the outset.

Other delays are the result of tighter controls, a necessary response to the Auditor-General. These controls are aimed at avoiding the waste of public money, including the payment of invoices that are not justified by the work done.

Fixing a broken system often causes delays, but it does not mean infrastructure projects will not be concluded. The irony is that Lesufi had a hand in breaking the system we are now fixing. Much of the damage inflicted on the City of Tshwane happened on the watch of the Gauteng Provincial Government. Lesufi was part of the Provincial Executive that dissolved the City Council in 2020 for ulterior political purposes and then presided over a R4,6 billion budget deficit in the City.

As candidate for re-election as Premier, Lesufi now wants to benefit from the injury he inflicted. Regardless of Lesufi’s election jitters, the City of Tshwane and our new top management team are committed to spending our full capital budget, and ensuring that we get maximum value for people’s money.

Media enquiries:

Sipho Stuurman

(siphost@tshwane.gov.za)

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