City of Tshwane operating on R4.4 billion deficit, says mayor.

Newly elected City of Tshwane executive mayor Randall Williams revealed on Tuesday 3 November 2020 that the City of Tshwane’s finances are in crisis.

In a statement, Williams said he had spent the past 4 days since taking office with staff trying to establish the financial standing of the city since being placed under administration.

“ On Monday 2 November I spent my afternoon in a working session with the Acting City Manager and the Chief Financial Officer to engage on the state of the City’s finances. The situation that I discovered is truly alarmin,” said  Williams.

City of Tshwane Executive mayor Randall Williams

Williams revealed that the operating balance showed a significant decline in an exceptionally short space of time. He stated that at the end of the 2018/19 financial year, when the DA was in government, the City had a surplus of R545 million. Then Between July 2019 and March 2020 just before the city council was dissolved, there was a surplus of R284 million.

He said the situation has however changed drastically.

“Having now scrutinized the pre-audited financial results for the 2019/20 financial year, I have learnt that this surplus has been completely eroded and the City is now operating a significant deficit of R4.4 billion.” he said

City of Tshwane Executive mayor Randall Williams

According to the figures that would mean the team of administrators lead by Mpho Nawa spent the surplus that they found along with an additional R4.4 billion. The administrators were brought in after the March 2020 dissolution of the city council by the Gauteng provincial government in terms on Section 139(1)(c).

Yesterday during a media briefing Gauteng Co-operative governance MEC Lebogang Maile thanked the administrators which have since been withdrawn from the city, stating that they hand done outstanding work. Maile went on to outline their achievements namely:

• The restoration of water in needy areas, including disinfection of informal settlements and public spaces;
• Chemical toilets provided to overall 277 informal settlements housing
• Potable water supply to overall 227 informal settlements through 1061 water tanks supplied by 273 mobile water tankers;
• The process to electrify informal settlements which is underway;
• Public transport challenges in Mamelodi and other affected areas which has been resolved;
• Water quality challenge in Hamanskraal which is being addressed in a multi-pronged approach;
• Service delivery experience by 3,5 million citizens of the city through numerous initiatives brought in by the Administrators;

The MEC also announced that the provincial government would not be appealing the Supreme Court of Appeal (SCA) judgment dismissing their application. The Gauteng government had sought to suspend the enforcement of a June order granted in favour of the DA. The June enforcement order was preceded by an April ruling declaring the decision to dissolve the council unlawful. The provincial government petitioned the Constitutional Court on the application of section 139(1)(c) and is awaiting that outcome.