Pretoria Sakekamer demands reforms after Adjustment Budget 2024/25

The Pretoria Sakekamer has called on the metro to implement urgent reforms in financial management, service delivery, and regulatory efficiency to restore investor confidence and ensure a stable economic environment.

The organisation is not in favour of the metro’s Adjustment Budget 2024/25 and would only support savings and productivity improvements to create a better city.

Fergus Ferguson, chairperson of the organisation, told Rekord that economic growth and job creation are the only remedies for a better Pretoria.

“We want to see reform and boots on the ground, rather than ribbon-cutting and socialising for officials to be popular,” emphasised Ferguson.

He commented on the Adjustment Budget 2024/25 that was tabled and approved at a time when mid-year expenditure according to the mayor, Dr. Nasiphi Moya, stands at R22.1 billion, 14% below the year-to-date budget.

The total revenue of the adjusted budget is R49 251 804 653, with the total expenditure of R49 022 796 666.

The Adjustment Budget has a total capital budget of R2.3-billion.

Ferguson said it is a concern that reducing water losses is not a priority to the metro in the Adjusted Budget for 2024/2025.

“The Auditor-General and the chairman of the Audit Committee have indicated that repairs and maintenance of infrastructure must be a priority and advised money spent on these repairs will make up for it within six months through savings on future problems around infrastructure. Nevertheless, it was accepted in the Adjustment Budget 2024/25 that the replacement of water pipes should be reduced,” said Ferguson.

It is also worrying to him and the members that there is an under-recovery of R655-million from October 2024 to the end of January 2025

“The current executive mayor is slipping backwards at an increasing rate while credibility in the current management is at an all-time low,” said Ferguson.

Underrecovery on a budget means that the actual revenue collected is less than what was originally budgeted or expected, resulting in a shortfall or loss of income compared to the planned amount.

“This is alarming. Despite this, contracted services are being increased by R603-million. This means a negative impact of R1 258-billion on the budget. The impact of interest should therefore be adjusted upwards,” said Ferguson.

He made a few recommendations about how the council and metro could go ahead on their way to financial rescue.

“The business community recognises that there were no permanently employed Section 56 managers until the end of the first quarter, which affected decision-making and service delivery. However, Pretoria Sakekamer commends the city manager and his team for proactively addressing financial governance issues. Unlike previous years, all irregular expenditure for the financial year was voluntarily identified, declared, and addressed rather than being uncovered during the audit process.”

He believes that communities can take control of basic services such as safety, pothole repairs, park maintenance and other permissible services through community upliftment precinct structures and that those communities can have a significant impact on those structures through technology and other mechanisms.

“Instead of writing off large amounts as uncollectible, a tangible benefit can be granted to the community upliftment precincts by applying a special category of tax for participants.”

He stressed that significant challenges remain that directly impact businesses operating in the metro.

“Despite some improvements, inconsistent electricity and water supply, deteriorating roads and inefficient waste collection remain major obstacles for businesses in Pretoria. Frequent power outages and water supply disruptions threaten operations, increase costs, and discourage investment. We urge the council to prioritise infrastructure maintenance and investment to ensure a reliable business operating environment.”

While he acknowledged the metro’s efforts to attract investment, he feels more direct support is needed for businesses.

He called for tax incentives to encourage job creation, expanded skills development programmes aligned with industry needs, and greater access to municipal procurement opportunities for small businesses.

“We remain committed to working with the Council and metro to drive economic recovery and ensure a thriving business environment. However, urgent action is required to stabilise the municipality’s finances, improve service delivery, and create a regulatory framework that enables business growth. We urge the Council to act decisively in implementing these necessary reforms. Without immediate and sustained improvements, businesses will continue to face uncertainty, limiting economic expansion and job creation in Pretoria.”

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