Tshwane’s poor collection rate compromises residents

By Adriana Randall MPL, DA Gauteng Shadow MEC for Finance:

The City Of Tshwane (CoT) has placed residents in danger by allowing revenue collection to drop to 79%, with cash reserves dwindling to less than one month savings, leaving the City open to complete shut-down should it face a crisis.

This was revealed by officials from National Treasury, who, upon the DA’s request, presented the most current financial statements on the three metros in Gauteng.

While the finance department in the COT has been reporting that its current collection rate is at 100%, National Treasury explained that this is an inaccurate reflection of collection as the city takes the approach of reporting their billing amounts as cash rather than liabilities.

National treasury also pointed out the following areas of concern:

  • The increasing number of consumer debt;
  • The risk of further depleting capital reserves; and
  • Unaffordable capital budgets.

As a result, National Treasury has ranked the CoT budget as unfunded.

Residents of Tshwane should not be placed in this precarious position which stems directly from poor financial controls and management.

CoT Manager, Jason Ngobeni, must provide an urgent turnabout strategy to arrest the poor collection rate in the metro before the situation is no longer tenable.