WATCH: Three years to stabilise Tshwane finances, says MMC
MMC Peter Sutton says despite the recent excellent strides in collecting revenue, Tshwane is not out of the woods yet.
The Tshwane metro says it will take about three years to turn its finances around despite collecting around R9-billion from residents in the past four months.
Finance MMC Peter Sutton was discussing the financial distress the metro had found itself in leading to its struggles with paying its monthly Eskom bill.
“We will not be able to pay Eskom in full yet, because of our liquidity problems.”
Eskom billed the metro R1.6-billion for electricity consumption in August, due and payable in September.
The metro has collected over R3-billion in the last four months through its aggressive revenue collection strategy, Tshwane Ya time.
Sutton said despite the recent excellent strides in collecting revenue, Tshwane was not out of the woods yet.
Recently Tshwane mayor told Gauteng department of co-operative governance and traditional affairs (Cogta) MEC Lebogang Maile that Tshwane was in no serious financial predicament but it was in an ongoing dispute with Eskom.
He further blamed the national and provincial governments for the metro’s financial position, as the departments of the two owed it approximately R425-million collectively as of September 21.
Williams listed the following government departments or agencies as metro debtors:
– Mpumalanga economic growth agency owed over R175-million
– Gauteng department of infrastructure development owed over R109-million
– National department of public works owed over R59-million
– SA national defence force owed over R40-million
– Gauteng health department owed over R23-million
– Gauteng rural development department owed over R16-million
CoGTA communications director Lupi Ngcayisa confirmed that the metro had responded to Maile.
“The mayor of Tshwane did submit a response to the MEC’s request. The department is in the process of analysing the mayor’s response and, once done, will make a pronouncement in due course.”
Early this month, Maile had asked Williams to appraise him of its financial status within seven days.
In his letter, Maile had cited news reports that suggested the metro was in financial distress and unable to pay its creditors.
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