‘Auction unlikely to shift financial needle’ – DA
Criticism from the DA says the move will not solve Tshwane’s worsening financial crisis despite assurances to the contrary from metro leadership.
The planned auction of more than 800 city fleet vehicles has sparked political debate, with DA Tshwane caucus leader Cilliers Brink questioning whether the move will make any real difference to the metro’s worsening financial position.
Brink said that municipalities regularly dispose of old assets that have already been written off, and warned that the sale of vehicles should not be presented as new income.
“Municipalities regularly auction off old assets that have already been written off by amortisation. That’s not revenue, just like selling your own car doesn’t increase your salary,” he said.
According to Brink, the real issue lies in the metro’s financial obligations following an announcement by ANC deputy mayor Eugene Modise that the metro would pay backdated salary increases regardless of affordability.
He believes this decision has placed the metro under severe pressure, with R1.5-billion needed to fund the backpay portion before June.
Brink added that the city manager has reportedly offered unions a settlement of R777-million and that internal budget preparations are urging group heads to reduce spending by between 5% and 10% to meet this obligation.
“These cuts are likely to affect frontline service delivery, including water and electricity restorations and routine maintenance,” said Brink.
He also raised concern about rising operational costs, saying spending on water tankers has increased by 455% in the past financial year, despite those funds being better suited for long-term infrastructure investment.
Against this background, he said the auction of 800 vehicles is unlikely to shift the financial needle, particularly if the metro still owes money to mechanics who service the fleet.
“I suspect it’s a story to try to distract from the real one: the nation’s capital is financially underwater,” Brink said.
In comparison, Mayor Dr Nasiphi Moya states that the decision to auction the vehicles is based on sound financial and operational considerations.
She said the metro identified more than 800 vehicles that have become too expensive to keep and maintain, making it financially prudent to dispose of them rather than leave them standing idle at municipal depots.
“We have identified over 800 fleet vehicles that belong to the city that we will place on auction to generate revenue,” said Moya.
She added that the online auction is scheduled for February and will allow the vehicles to enter the second-hand market.
MMC for Corporate and Shared Services Kholofelo Morodi said the auction forms part of a broader strategy to strengthen asset management and improve service delivery efficiency.
She explained that most of the vehicles earmarked for disposal are aged, high-mileage units that have exceeded their optimal economic life cycle.
“Many of the vehicles are no longer operational or require frequent and costly repairs, making them unreliable for service delivery,” said Morodi.
She added that removing these vehicles from the active fleet will reduce downtime caused by breakdowns and improve overall fleet availability for frontline services.
Morodi assured residents that municipal operations will not be negatively affected, as most of the vehicles identified for disposal have already been replaced through a fleet strategy implemented over the past six financial years.
She said replacement vehicles are selected to be cost-effective, fuel-efficient and fit for purpose, with warranties and maintenance plans that reduce long-term operating expenses.
The final value of the vehicles will be determined by an appointed auctioneer based on their condition and market demand, with figures to be confirmed once valuations are completed.
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