WATCH: Tshwane’s finances are far from embarrassing, claims mayor

A parliamentary committee has maintained that Tshwane is wasting money it spends 2% of its budget on maintenance against the national norm of 8% which sees huge water and electricity losses which could be resolved if investments were made to the infrastructure.

Tshwane mayor Cilliers Brink has refuted claims that the finances of the Capital City are far from their worst as asserted by a parliamentary committee.

Brink renounced the claims during a so-called wild-cat strike in which municipal workers are demanding increases the metro maintains it is in no position to grant.

The increases according to Brink will cost around R600-million.

This has led to havoc in the metro as service delivery has been delayed and about four staff members criminally charged for public violence and about 14 people were arrested outside Tshwane House on July 26 as the South African municipal workers union (Samwu) protest gains momentum.

 

“It is certainly not true that we are the worst metro in our estimation. What is true is that the finances are in a terrible state.

“The city manager and I are on a rescue mission and we would like to take hands with workers to identify problems of corruption and abuse.”

Brink said a funding plan was presented to the National Treasury as the metro sat with an unfunded budget.

He said the metro was trying to prevent a situation where pension contributions, other benefits and salaries could not be paid in future.

Brink was addressing unions and the media over the cooperative governance and traditional affairs (Cogta) committee claims and the city’s decision for 0% salary increases to workers.

WATCH:

 

The select committee on Cogta, water and sanitation and human settlements upheld this week that Tshwane needed to begin to implement its financial recovery plan as its coffers were “embarrassing”.

Committee chairperson China Dodovu said his committee was concerned with the lack of tangible progress in implementing the audit action plan.

“Tshwane’s embarrassing financial affairs require immediate resolution.”

Dodovu said its perspective on Tshwane was that the metro lacked financial management.

He cited concerns over the lack of tangible progress in implementing the audit action plan, which is necessary to address the negative areas of the audit.

The committee highlighted that the cashflow challenges faced by Tshwane could be resolved if residents pay for services.

“The committee is concerned about the low investment in infrastructure maintenance, which increases the risk of poor service delivery and losses. The city spends 2% of its budget on maintenance against the national norm of 8%.

This is concerning in the context of the huge water and electricity losses, which could be remedied by maintaining bulk infrastructure that will ensure that residents receive reliable water, roads and electricity.

Tshwane requires urgent action to resolve… while the committee noted the city’s plans to improve its dire financial position, the committee emphasised the necessity of effective implementation. However, the risk to achieving this is the lack of capacity and skills, especially in strategic roles within the city, the committee,” said Dodovu.

The committee was also concerned about the city’s overreliance on consultants and called for enhanced internal capacity to save money.

“While the committee acknowledge that in some instances consultants are necessary, it cautioned against abuse.”

The committee was concluding its week-long oversight on municipalities in Gauteng and called for a paradigm shift within the local sphere of government if challenges facing the sector are to be overcome.

“We must be frank that the main challenge within the local sphere of government is the lack of appetite to implement effective consequence management, which then encourages a self-seeking culture of corruption and undermining of service delivery,” said Dodovu.

He cited that Tshwane had to get its affairs in order especially as it was struggling to fill critical vacant positions, including the chief financial officer, which will be essential in implementing its plans.

“While the city assured the committee that recruitment is at an advanced stage, the committee said speed is required to finalise appointments and fill vacancies with competent staff.”

“The committee welcomed the commitment from the city that recommendations of candidates to council might be made by August 2023.”

Poor service is order of the day at Jack Hindon clinic in the north, say residents

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