Metro emphasises accountability as financial irregularities put city under spotlight

The Tshwane metro says it is taking firm steps to rebuild public trust and strengthen investor confidence.

According to the metro, it has submitted its unaudited Annual Financial Statements (AFS) for the year ending June 30 to the Auditor-General of South Africa.

The submission was made on August 30.

It comes at a time when the metro’s financial management is under the spotlight, following revelations of R336-million in irregular expenditure in the fourth quarter of the 2024/25 financial year.

Deputy mayor Eugene Modise said the metro’s commitment to transparency was non-negotiable.

“This submission is more than a technical compliance exercise. It is a clear demonstration of our commitment to responsible governance, fiscal discipline, and public trust,” Modise explained.

He said the unaudited AFS provides a full account of the metro’s financial health, including a statement of the city’s financial position, performance, cash flow, and budget comparisons.

Modise stated that statements were prepared in line with the South African Standards of Generally Recognised Accounting Practice, as well as the Municipal Finance Management Act (MFMA) and the Division of Revenue Act.

He added that this process was vital not only to meet legal requirements but also to show residents and investors how resources were being managed.

“Every rand we receive must serve a purpose, whether in advancing service delivery, stimulating inclusive economic growth, or building a financially sustainable municipality,” he said.

The AFS have also been made accessible through the National Treasury’s website, allowing residents, ratepayers, and stakeholders to scrutinise the metro’s financial position.

“By making this information public, we are reinforcing accountability. It is about proving to residents that we remain transparent and dedicated to the highest standards of governance,” Modise added.

The Auditor-General will now conduct an independent audit of the statements before final audited financials are published later this year.

Modise said the process was crucial to maintaining credibility.

“The independent review ensures objectivity, trustworthiness, and credibility in municipal financial reporting.

“It shows that Tshwane is ready to embrace both challenges and opportunities with integrity, responsibility, and vision,” he said.

Despite these assurances, opposition parties in council have warned that recent revelations of irregular expenditure undermine the metro’s credibility.

A council report tabled earlier this year showed tenders worth R336-million across several departments, including Group Property Management, Roads and Transport, Water and Sanitation, Group Legal Services, and the TMPD.

According to opposition parties, the tenders were extended without following proper procedures.

Freedom Front Plus finance spokesperson, Mark Surgeon, described the findings as alarming, saying they highlighted systemic failures in Tshwane’s financial management.

“Municipal officials are not following the requirements set out in the MFMA when appointing tenders.

“Vital steps are being missed, and information is being excluded from tender documents,” Surgeon said.

He warned that the irregularities not only pointed to corruption, but also directly threatened service delivery.

“This frequently leads to failed contracts, cost overruns, and residents receiving fewer services while paying more. The administration, which manages bid adjudication from start to finish, must be held accountable,” he added.

Surgeon said the council was often only informed of discrepancies after financial damage had already occurred.

“When officials ignore procedures, corruption is more likely. Information that can incriminate officials or connected contractors is often deliberately left out,” he said.

The Democratic Alliance echoed these concerns, pointing specifically to R170-million in irregular expenditure linked to a tender for security services.

DA finance spokesperson, Jacqui Uys, alleged that Triotic Protection Services, the company that benefited from the extended tender, was connected to a senior metro official.

“Concerns regarding this tender were raised earlier in council by the DA. We also lodged a complaint with the Auditor-General after discovering that the extension was not properly declared,” Uys said.

She added that while her party welcomed the declaration and investigation of the irregular expenditure, the episode highlighted a recurring problem.

“It is once again indicative of the nature of this ANC-led administration, where matters are hidden and not treated procedurally until they are forced into the public eye,” she said.

Opposition parties have called for stronger political oversight and accountability, warning that Tshwane’s financial system will remain vulnerable without significant reform.

“If officials can continually get away with failing to follow the MFMA, the city will never resolve these systemic problems. Corrupt or incompetent officials must be held accountable,” Surgeon stressed.

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