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Today, during a Special Council meeting, a report on the mid-year budget assessment of the City of Tshwane as well as a report on the achievements of the City’s mid-year performance targets were presented to Council.
 
As GOOD we would like to congratulate the City at large for the improvements we are seeing in the financial status of the city.  
 
Following the poor audit outcome of the 2023/24 financial year under the DA, it is critical for the city to work together in this current 2024/25 year to improve our financial status with the AGSA and improve confidence with our residents, business and investors.  
 
GOOD is proud to be a part of the multi-party leadership team that is already achieving some of these key improvements.  In comparison to the city’s position last year, several positive signs of change have come through in the current mid-year reports.
 
Some key financial improvements are:
-           By the end of December 2024, the City of Tshwane’s spending was only 14% behind the target. This is a big improvement from the situation in December 2023, the previous financial year, when spending was 20% behind the target.
 
-           When we look at capital expenditure, the improvements are even more impressive. The city has achieved a 45% spend of its capex budget (spending plus commitments) by December 2024. This is a huge increase from the previous year, when just 16.9% of the budget had been spent by December 2023. Capex projects – our investments into critical infrastructure across the metro – are essential to achieving improved service delivery of water, electricity and road networks.
 
-           In the previous 2023/24 year, the City also reported a very large underspend of R4,6 billion on its operational budget. For the same period this year, this underspend has been reduced by more than one billion rand, down to R3,4 billion as at December 2024.
 
-           There is also good news for companies doing business with the City of Tshwane. In 2023/24, just 21% of creditors were paid within the terms as prescribed by Section 65(e) of the MFMA. This year, the percentage of creditors paid within the prescribed terms has more than doubled to 47%.
 
-           There is also evidence of greater financial stability and signs of longer-term fiscal responsibility.  In the previous year, debt to equity stood at more than 85%, but in our current financial year, the debt-to-equity ratio has been reduced to less than 65%. Furthermore, whilst in December 2023 Tshwane owed more than R6.2 billion for electricity bulk purchases, by December 2024 this amount has been reduced to less than R4,7 billion.  
 
The City must pay Eskom to ensure that the national energy generator can afford to service its fleet of power stations and maintain its distribution network.
 
As with the mid-year financial report, we are similarly optimistic about the evidence of improved performance recorded in the mid-year 2024/25 performance report.
 
The department I am responsible for, the Economic Development and Spatial Planning Department, has achieved ALL of its midyear targets.   This 100% achievement was made whilst the Department was also responding and reallocating its small pool of resources to comply with the President’s directive for the municipality to register its spaza shops and food handling businesses. I have thanked the team for their tremendous efforts.
 
For the City of Tshwane overall, the city achieved 59% of its mid-year targets. This is a significant improvement over the last financial year, when the City was only able to achieve 38% of its midyear targets.
 
In addition to the positive indicators of financial management and improved spending and performance that we are starting to see, it is also reassuring to know that the AG’s concerns regarding consequence management are also being addressed. The City reported in the Business Day yesterday that, courtesy of the Consequence Management Committee, 67 officials have been dismissed and another 31 officials were issued with final written warnings. Dozens of cases have also been referred to the city’s Financial Disciplinary board for further action.
 
The era of no consequences for non-compliance, for fraud and for waste is coming to an end. It is long overdue that we put the residents and wellbeing of this wonderful city first. They are the people that we work for and must deliver for.
 

Issued by Sarah Mabotsa, GOOD: City of Tshwane Councillor