‘No Tshwane grant crisis’ – Tshwane mayor Brink

City of Tshwane mayor Cilliers Brink says he isn’t going anywhere and it is untrue that R2.6 billion in grants had been withdrawn from the city by national government.

This follows Treasury deputy director-general Malijeng Ngqaleni’s proposal that a portion of the 2023-24 allocation to Tshwane be stopped earlier this week.

Resignation rumours

Former ANC chair in Tshwane Kgoši Maepa posted on X that Brink would be resigning after he apparently attended a Democratic Alliance (DA) interview for selection of members of parliament for the 2024 elections.

Thereafter, Gauteng premier Panyaza Lesufi called for an intervention in the financially troubled city.

Brink said this did not happen and the city was asked by National Treasury to account for a much smaller unspent portion of capital grants.

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“Attached to the post was a letter by the National Treasury to the city, which it would seem very few commenting on the issue bothered to read. The letter does not say that the city would forfeit more than R2 billion.

“The letter does call on the city to account for the unspent portion of these grants and to explain why some of this money (about R635 million) should not revert to the national fiscus,” he said.

Brink said spending the city’s full capital budget was essential to improving infrastructure for service delivery, especially to the poor.

He added that some of the delays in the capital projects were caused by last year’s unlawful strike and as a result of tighter controls, which was a necessary response to the Auditor-General.

“Regardless of Lesufi’s election jitters, the City of Tshwane and our new top management team are committed to spending our full capital budget and ensuring that we get maximum value for people’s money,” he said.

Tshwane not only municipality to recieve letter

DA Tshwane caucus spokesperson Kwena Moloto said Tshwane was not the only municipality to receive a letter like this from National Treasury.

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“It is true that National Treasury has written a letter of intent to the city regarding the underspending of grant funding in the 2023-2024 financial year.

“It is, however, a blatant lie by the ANC to suggest that R2.6 billion in grant funding would be returned to national government. The amount is closer to R650 million,” he said.

“It is true that Tshwane has underspent several grants so far in this financial year.

“However, this is as a result of the introduction of tighter controls to curb corruption and fruitless and wasteful expenditure in the city,” he added.

Joburg and Ekurhuleni also received similar letters

Moloto said in Gauteng, the cities of Joburg and Ekurhuleni also received similar letters.

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“However, conveniently for Lesufi and the ANC, the only letter to be leaked was Tshwane’s.

“The campaign season is upon us and the ANC’s desperation can be seen through their attempts at cheap political point-scoring,” he said.

Tshwane Economic Freedom Fighters (EFF) caucus leader Obakeng Ramabodu said the EFF was dismayed that the coalition’s financial mismanagement had prompted National Treasury to consider withholding grants from the municipality.

“The cessation of these financial resources suggests Tshwane will face a significant shortfall in urban development funding.

“This will adversely affect transport subsidies.

“The opportunity to enhance over 200 informal settlements and better the lives of residents will be missed,” he said.