Councillors, officials owe Tshwane R2m as metro’s debt soars to R20bn

The City of Tshwane has revealed that its R20 billion debtors book includes R2 million owed by councillors who do not pay their rates and services bills. Jacques Naude/African News Agency (ANA)

The City of Tshwane has revealed that its R20 billion debtors book includes R2 million owed by councillors who do not pay their rates and services bills. Jacques Naude/African News Agency (ANA)

Published Mar 28, 2023

Share

Pretoria - Councillors in the City of Tshwane collectively owe the metro more than R2 million for municipal rates and services.

According to the municipality, some of its officials were also in financial trouble for being in arrears.

The outstanding debt by councillors and municipal officials contributed to the City’s debtor’s book which has since risen to R20 billion.

This came to light after the City was granted an extension by the Gauteng Treasury to pass its adjustment budget.

The City missed its February 28 deadline for passing the adjustment budget owing to political battles for power by the ANC-EFF grouping and the multiparty coalition partners, which include the DA, ActionSA, FF Plus, IFP and ACDP.

The metro has been without a mayor or executive since Dr Murunwa Makwarela was sent packing for allegedly falsifying his insolvency clearance certificate. He had replaced Randall Williams, who resigned in February after allegedly falling out of favour with his caucus.

The City expressed appreciation for the decision to grant an extension for the tabling of the mid-year adjustment budget and adjusted service delivery and budget implementation plan to April 14.

Municipal spokesperson Selby Bokaba said: “Initially, the City’s application for an extension was granted until March 24. However, when it became apparent that the deadline would not be met, the City again wrote to the provincial treasury to request another extension.”

He said the province, in granting the extension, laid down strict timelines for the City to implement revenue measures against defaulters whose accounts were in arrears.

Among the defaulters were councillors and municipal officials who owe the city more than R2m.

Bokaba said the City debtor’s book had increased to a staggering R20bn.

“The City will implement stringent credit control measures to recoup monies it is owed. The treasury has instructed the City to table two budgets on April 14 – the mid-year adjustment budget and plan for the current financial year, together with the 2023/24 financial year budget,” he said.

For the City to comply with the deadline set by the provincial treasury, he said, it had to ensure that the executive mayor was urgently elected and the mayoral committee established for the budget report to be tabled for council approval.

“The implications of not tabling the adjustment budget are that the City cannot move funds to cover the shortfall on key service delivery areas such as waste collection, watchmen and rudimentary services, and any expenditure incurred will be unauthorised. Despite the challenges experienced in council in the recent past, the City has continued to render service delivery to its customers.

“The City remains confident that it will comply with the directives of the provincial treasury,” Bokaba said.

Pretoria News