Tshwane’s announcement that it has achieved a funded budget for the first time in years has drawn sharp criticism from opposition parties, who say the metro’s finances are far from stable.

Member of the Mayoral Committee (MMC) for Finance, Eugene Modise, said the financial turnaround since 2024 marks a ‘move from crisis to cautious stability’.

“When we took office in October 2024, Tshwane was in a dire financial position,” he said.

“For four consecutive years, the city had operated with an unfunded budget, limited cash reserves, and mounting debt to Eskom.”

According to Modise, their cash and cash equivalents have grown from R835-million to R1.9-billion, giving the metro a much-needed buffer.

He explained they have also achieved a surplus of R1.9-billion in the first quarter of this financial year.

Modise added that the metro reduced its Eskom debt by R1.1-billion, fully settled a R4.6-billion VAT liability, and improved its billing accuracy to 99%.

“These are major milestones that have restored confidence among creditors and residents alike,” Modise said.

However, opposition councillors have cast doubt on these claims, suggesting that the metro’s financial stability may be more apparent than real.

Despite the criticism, Modise insists that Tshwane’s financial turnaround is genuine, though still fragile.

“Our cash position is still thin, and revenue recovery is not yet where it needs to be,” Modise said.

“But we are committed to building a stronger, more resilient financial foundation for the years ahead.”

Freedom Front Plus councillor Mark Surgeon said it is difficult to verify the metro’s claims without full transparency.

“Although they claim the budget is fully funded, that doesn’t necessarily mean everything is going well,” said Surgeon.

“It could mean they’re cutting costs elsewhere just to balance the books. For months earlier this year, several departments weren’t processing cost orders, meaning little to no work was done.”

He alleged that some contracted companies in wastewater management received no-cost orders for about three months, suggesting maintenance work was halted during that time.

“There was very little expenditure, and that’s one way to make your budget look balanced,” Surgeon said.

Democratic Alliance caucus leader Jacqui Uys also dismissed Modise’s report, saying the numbers were misleading.

“A budget that looks good on paper means nothing if you start R857-million in the red from the previous year,” Uys said.

She said the reduction in Eskom debt was not the result of sound financial management, but rather a debt relief agreement reached under former DA mayor Cilliers Brink.

“The Eskom debt reduction was possible because of an agreement to write off interest, made possible after Brink endured a two-month violent strike that ultimately saved the city R600-million,” she said.

Uys also questioned the metro’s reported increase in cash reserves.

“Of course, you will have money in the bank if you don’t pay your creditors,” she said. “Money in the bank means nothing if you owe R9-billion to suppliers.”

Over the claim that the metro’s debtors’ book dropped from R35-billion to R27-billion, Uys said that’s just not true.

According to Uys, when the DA left office, the debtors’ book was already at R27-billion.

“The ANC has since written off billions in arrears debt through incentive programmes, but the total hasn’t moved.”

She also took issue with the metro’s claim of improved revenue collection.

“Under the DA, revenue collection stood at 90%. It’s now down to 82%, which is a decline, not an achievement,” she said.

Uys further criticised the metro’s handling of irregular expenditure.

“R14.4-billion in irregular expenditure is being investigated, but that means nothing if the reports don’t reach council for recovery and accountability,” she said.

“And as for the R86-billion in investment pledges, let’s celebrate when they’re realised, not when they’re promised.”

As the metro prepares for the 2025/26 financial year, the debate over whether Tshwane’s finances are truly stabilising or merely being presented that way is far from settled.

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