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Prepared remarks by Alderman Cilliers Brink, Democratic Alliance (DA) Caucus Leader in the Tshwane Metro, on Item 2 of the agenda of the Tshwane municipal council meeting of 28 August 2025 (Group Finances Services Department: Approval of short-term debt facilities for the 2025/26 financial year).

The municipal council of the Tshwane Metro is being asked to approve a R800 million overdraft facility despite the City not having a funded budget or a credible funding plan. Without a council approved plan to address the deficit, the DA cannot help Tshwane to incur more debts.

Last month the Gauteng High Court set aside Tshwane’s so-called City Cleansing Levy. The City has since been refused leave to appeal. As a result, Tshwane will have an operating deficit of at least R500 million.

The DA opposed the City cleansing levy proposed by the ANC coalition in June this year. Aside from Tshwane residents already being overburdened, it was never clear if the tariff was structured to fund city cleansing. The DA’s suspicion, which has since been confirmed, is that the levy was an attempted quick fix to plug the budget deficit.

Even before the City Cleansing Levy was struck down, Tshwane had underperformed in nine (9) of the twelve months in the 2024/25 financial year - the months the ANC coalition were in charge. Missing the funding plan targets as from October 2024 to June 2025, Tshwane ended the previous financial year ending June with an effective deficit of R857 million.

If a municipality’s budget has a deficit, the council must adopt a funding plan — a set of measures to achieve a funded budget within a specified period. It was in terms of a funding plan in the past two financial years that Tshwane made difficult decisions aimed at improving the City’s financial position.

One of these decisions was to forgo council and staff salary increases in 2023/24, which achieved an immediate saving of R600 million that enabled a favourable payment arrangement with Eskom.

While the current budget does set out measures to improve funding, these measures are based on the false premise of Tshwane having a funded budget. The striking down of the City Cleansing Levy prompts the council to adopt a reviewed funding plan.

The DA cannot support a loan facility in terms of a budget that is no longer credible. Not only will the City be spending money it won’t collect. It will potentially be lending money it won’t be able to pay back.

We will be writing to National Treasury to ask their support in preparing a credible funding plan, as they did in previous years.

Issued by Ald Cilliers Brink - DA Tshwane Mayoral Candidate