Tshwane's R777m budget adjustment sparks controversy over security and water contracts

The City of Tshwane's multiparty government has successfully passed an adjustment budget for the 2024/2025 financial year amid criticisms by the DA that the budget favours water tankering contractors and security company owners doing business with the metro.

This took place during an ordinary council sitting at Tshwane House on Thursday. 

The criticism comes after the DA raised concerns this week about Deputy Mayor Eugene Modise's past ties to a security company that currently has contracts with the municipality. 

Modise, who doubles as Finance MMC, has since resigned from a company called Triotic Protection Services.

The company was awarded the security tender in the 2016/2017 financial year and it is under the ownership of Modise’s mother, Nelly Modise, and its director is Neo Mafodi, who “is allegedly the mother of Modise's child”.

During the council sitting, the DA strongly objected to the proposed adjustment budget, specifically taking issue with the massive 62% increase in spending on water tankers. 

According to the party, the hike would add a substantial R242 million to the original budget of R378m.

DA caucus leader Cilliers Brink said the Hammanskraal water project was devised to get clean water in people’s taps and reduce reliance on water tankers.

"If that project is completed in this municipal financial year, as per schedule, then Tshwane will save R60 million on water tankering in the next financial year,” he said.

The multiparty government, comprising ANC, EFF, ActionSA, ACDP, AIC, DOP, PA, PAC, ATM, and GOOD, also came under criticism for its plan to increase spending on watchman security services by a staggering 103%. 

The proposed increase, Brink said, would add R315m to the initial budget of R307m.

He suggested that the government would rather budget R100m of the R315m on security technology like cameras, motion detectors, and control rooms to link armed response teams with stationary guards.

Tshwane Mayor Nasiphi Moya accused the DA of misleading the residents by stating that there was suddenly corruption in the municipality after her administration decided to do something about the security tender.

“I am repeating what I said because it is about us; it is the residents that have been misled - that I am the face of corruption for a security tender that has been coming for years, and no one was doing something about it. And now that we are acting on it, all of a sudden there is corruption,” she said.

She said the city lost almost billions of rand due to security that was withdrawn from critical municipal infrastructure during the DA-led administration.

“Most councillors here know how much they suffer because security has not been a priority by the previous administration,” she said.

Moya came out swinging against the DA, urging them to distance themselves from ActionSA's policy on insourcing cleaners and security guards.

She also took aim at the DA's past administration, revealing that her team discovered a staggering 10 000 unbilled municipal accounts in the waste department. 

She questioned why the account holders were allowed to skip their debts, highlighting the need for greater accountability and transparency.

In a joint media statement, the multiparty government celebrated a significant boost in revenue, with a total increase of R777.5m, representing a 2% rise.

The upward trend is attributed to several key factors, including water service charges, which increased by R160.5m (3%) due to improved billing and revenue collection and interest earned from receivables, which surged by R437.2m (33%) due to strengthened credit control measures.

The coalition partners said property rates increased by R64.9m (1%), reflecting a stable tax base. 

However, fines, penalties, and forfeits declined by R71m (32%), requiring a review of enforcement strategies.

rapula.moatshe@inl.co.za