City of Tshwane is on the verge of bankruptcy. This is according to Kevin Mileham, MP Democratic Alliance (DA) shadow minister of cooperative governance and traditional affairs in the provincial legislature.
Mileham said the DA is in possession of Tshwane metro’s financial statements for the 2013/14 financial year which highlights the city is on the verge of bankruptcy. Considering debts are not being collected, the DA projects the city will run out of operating cash.
“We have therefore written to the Portfolio Chairperson on Cooperative Governance and Traditional Affairs (COGTA), Richard Mdakane, requesting him to summon the Gauteng COGTA MEC, City of Tshwane Municipal Manager and Chief Financial Officer and the Provincial Auditor-General (PAG) of South Africa to National Parliament, to account for discrepancies in the City of Tshwane’s finances. We are very concerned about Tshwane’s financial status and therefore require its top echelon to appear in front of national government,” he said.
Selby Bokabe, spokesperson for the Tshwane metro said he was made aware of the DA statement on Tuesday. “Unfortunately we were in a two day meeting. I am waiting for a response from our finance department before I can comment on it,” he said.
Mileham said should the city’s top management refuse to adhere to their request, he will ask that the matter be referred to the portfolio committee to be placed on the agenda. “However, if it does not appear on the agenda, my next step will be to write directly to the Gauteng COGTA MEC and request the City of Tshwane to be placed under financial administration in terms of section 137 of the municipal financial management act. My colleagues in the Gauteng provincial legislature will also be doing the same thing I am doing.”
The DA statement highlighted a number of concerns, which they say implies the city was technically bankrupt, among others:
– The increase in unauthorised and irregular expenditure.
– A decreasing collection rate of municipal debts.
– Average settlement period of creditors being at 51 days and 104 days.
– A lack of reporting to council about irregular and unauthorised expenditure.
– Failure to recover illegal and irregular expenditure on ward committees.
– Failure to maintain an adequate municipal asset register.
– The expenditure of approximately R100 million on Tshwane House.
– The inability of the city to meet its financial obligations.
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