Msimanga’s administration botches chance to make R2.1bn for Tshwane – report

Business Day has reported that a procedural error last week caused the City of Tshwane to cancel its first bond auction in five years, since it emerged it had not followed procedures set down by the Auditor-General (AG).

Owing to the alleged procedural bungle last Tuesday, the Auditor-General did not issue a letter of comfort, which would have allowed the DA-led municipality to go to market.

However, it’s understood the city will be trying again and should presumably get it right in round two.

Business Day reports that the city stood to alleviate some of its tough financial conditions with bids that amounted to R2.1 billion from 11 bidders, which would have gone towards capital expenditure. When Mayor Solly Msimanga took office, he allegedly inherited a budget deficit of R2 billion from the ANC administration. The DA has boasted that they have subsequently turned this around.

The paper reported that not all required documents had, however, been submitted to the AG on time last week, according to stipulations in the Municipal Finance Management Act.

The city said it was, however, buoyed by the positive market sentiment towards the city, with the chance to have made more than double what they’d originally hoped for.