Media statement 2 December 2024
Cllr Nasiphi Moya
Executive Mayor of Tshwane
Good morning, members of the media, residents of Tshwane and stakeholders.
Thank you for joining me today as we provide updates on several key issues that are critical to the recovery and stabilisation of our City. Our administration is committed to transparency and accountability, and today’s briefing reflects our dedication to keeping you informed.
Eskom debt settlement: A step towards financial recovery
I am pleased to announce that the City of Tshwane has reached a landmark agreement with Eskom to settle the R6,67 billion historical debt owed to the utility. This agreement, formalised as a court order on 26 November 2024, is a significant milestone in our journey to financial recovery and stability.
The arrangement outlines a structured repayment plan spanning five years, with the first payment of R400 million scheduled for December 2024. Additionally, the City has already paid R425 million for arrears for October 2024. A critical condition of this agreement is the timely payment of current accounts within 30 days of billing.
This settlement signals a turning point, ending years of costly litigation and redirecting our focus toward improving service delivery and enhancing revenue collection systems. My administration is fully committed to honouring this arrangement in full. We will adopt stronger financial governance practices to ensure this never happens again, safeguarding the City’s resources and financial health.
Labour Court update: Balancing fairness and financial sustainability
The City has been navigating significant financial challenges that necessitate tough decisions regarding wage increases under the South African Local Government Association Collective Agreement.
On 21 and 22 November 2024, we appeared before the Labour Court to review decisions by the panellist dismissing our applications for exemption from the 3,5% and 5,4% wage increases for the first and third years of the agreement, respectively. We believe these decisions overlooked the City’s financial constraints and broader implications for service delivery.
For the 3,5% wage increase, we seek a fresh evaluation by a new panellist. For the 5,4% increase, we have asked the Labour Court to substitute the panellist’s decision, considering the available evidence. These matters remain under judicial consideration, and we are optimistic that the Court will recognise the City’s unique financial challenges. Judgment was reserved in both matters.
We remain open to engaging with unions and other stakeholders to explore sustainable solutions. However, our primary responsibility is to ensure financial stability while fulfilling our commitments to residents.
Hammanskraal water access: Restoring dignity through clean water
Ensuring clean, potable water for the residents of Hammanskraal remains a top priority for this administration. For decades, residents have endured unsafe water conditions, an unacceptable reality that we are determined to change.
Our administration has already taken significant steps to address this crisis. Council recently approved a decision to write off R600 million in water-related debt, relieving Hammanskraal residents of the financial burden of paying for water they could not safely consume. This is a vital step towards restoring dignity and fairness.
On the operational front, progress is underway with the commissioning of the Magalies Water Package Plant, a crucial component of our efforts to supply clean water to the region. Key developments include the following:
• Installation of valves to separate areas where contaminated water from Temba Plant and Klipdrift Plant were mixing.
• Systematic flushing and scouring of pipelines to improve water quality. Approximately 80% of the area has been flushed, with only Kekana Gardens still in progress due to the current insufficient water supply by Magalies.
• Regular water quality testing to ensure compliance with SANS 241:2015 standards.
Our collaboration with Magalies Water and the Department of Water and Sanitation continues to be instrumental in these efforts. We remain committed to providing updates and ensuring that this critical project stays on track to deliver tangible results for the people of Hammanskraal.
Spaza shop regulation: Safeguarding public health and economic order
In the wake of recent foodborne illness outbreaks linked to unsafe practices in spaza shops, the City has intensified its efforts to regulate this sector and protect public health.
On 25 November 2024, we activated the Disaster Operations Centre to coordinate a multisectoral response. Thus far, we have inspected over 400 spaza shops, issued fines and shut down non-compliant operations. These efforts highlight our commitment to ensuring that residents have access to safe and healthy food options.
To strengthen these interventions, the City has introduced an online registration portal for spaza shops, streamlining compliance processes and enhancing oversight. Additionally, a draft Informal Trading and Township Economy By-law has been approved by Council for public consultation. This by-law proposes stricter licencing requirements, enforces health and safety standards, and outlines penalties for non-compliance.
We encourage all stakeholders to participate actively in the public consultation process. Your input will help us shape policies that reflect community needs and priorities. This administration is dedicated to balancing enforcement with empowerment, supporting informal traders while safeguarding public health.
Looking ahead: Building a resilient and inclusive Tshwane
As we approach the midpoint of our 100-day Plan, I am inspired by the progress we are making, but I am also aware of the work that lies ahead. From financial recovery to equitable service delivery, my administration is committed to building a Tshwane that works for all its residents.
This is a journey of transformation, and it requires the collective effort of the government, businesses and communities. Together, we can achieve our vision of a financially stable, well-governed and inclusive city that serves its residents with dignity and fairness.
Thank you, and I am happy to take your questions.
Enquiries:
Zintle Mahlati
zintlema@tshwane.gov.za