Metro grows cash reserves in first 100 Days in Office of new regime
The report card of the multi-party coalition’s first 100 days in office shows some losses and some gains, with residents benefiting when it comes to the metro having more cash in the bank and paying their debt to Eskom timeously.
Tshwane mayor Dr Nasiphi Moya says the metro’s cash reserves in her 100 days in office had grown to R368 million by January.
“The financial recovery of the metro will not be achieved overnight, but the progress we have made in the first 100 days demonstrates that we are on the right path.”
Moya pointed this out during her report back on the progress of the multi-party coalition government in its first 100 days in office.
“Restoring the city’s financial stability has been our top priority, as no municipality can effectively deliver services without the necessary financial resources. Central to our financial recovery has been improving revenue collection. We set ourselves an ambitious target of collecting R4-billion per month. While we have not yet reached this figure, we have consistently achieved an average monthly revenue collection of R3,3-billion.”
Moya said since taking office, the metro secured an agreement to ring-fence the historic Eskom debt of R6,76-billion.
She was pleased to report that the metro has successfully honoured this agreement and that the debt has been reduced from R6,76-billion to R6,1-billion.
It was also gratifying to Moya that the one target they did make was that of maintaining at least R50-million in cash reserves per month.
Referring to the cash reserves of R368-million, she said: “This financial cushion is critical in ensuring that we have contingency funds to respond to unforeseen challenges.”
She explained that managing the metro’s debtors’ book also remained a priority.
Over the past three months, the metro issued 242 406 final notices for outstanding debt, which generated R285-million in cash.
She said that the Auditor-General flagged in his report that regarding the metro’s finances, a lack of consequence management is a concern.
Moya reported that various ongoing forensic investigations and disciplinary actions have been done. A total of 180 forensic investigations have been concluded, including some cases where disciplinary action was recommended against employees.
One of the key deliverables of the 100 Day Action Plan has been the development of a comprehensive economic revitalisation strategy.
Moya reported several key interventions on this deliverable, such as the launch of a VIP service line for the city’s top 200 business clients and reducing the turnaround time for building plan approvals.
She referred to one of the plan’s key priorities, being the issue of abandoned and hijacked buildings, where repurposing of so-called “bad” buildings has become a key focus.
One such example is the recent handover of Schubart Park to the Tsoseletso Consortium, which has committed over R1-billion to redevelop the site into a vibrant mixed-use development.
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