Rorisang Kgosana
Premium Journalist
4 minute read
20 Jul 2021
6:33 pm

‘Bankrupt’ Tshwane Metro plans 50% budget cuts to balance books

Rorisang Kgosana

The city has to find a way to save R1 billion, but they say residents don't have to worry that this would impact service delivery.

Tshwane Mayor Randall Williams. Picture: Tracy Lee Stark

The tattered finances of the City of Tshwane have left the metro with no choice but to delay projects, put a pause on awarding new contracts, and cut operational spending by up to half to try and salvage R1 billion of revenue. Mayor Randall Williams had admitted earlier this year that the city was technically bankrupt, as its liabilities of about R14 billion exceeded its assets by R3 billion. To make matters worse, the metro was downgraded by rating agency Moody’s two weeks ago, with the international agency citing liquidity concerns. The four-notch downgrade from B1 to Caa2, ranking the...