Tshwane in financial distress with a loss of R4.4bn
The outgoing administrators of the City of Tshwane had anticipated a surplus between R1.3 billion to R1.5 billion have failed to deliver. Instead, they left the metro with a deficit of R4.4 billion.
Randall Williams, the new executive mayor has criticized the former administrators for wasting R284 million surplus that was left by the DA-led administration before the council was dissolved in March.
The Local Government MEC Lebogang Maile said the City’s financial performance has improved drastically.
However, the DA disagrees as they claimed the administrators’ salaries have increased to R10 million. Maile refuted the claims and estimated the administrators’ salaries to be about R7.5 million.
Williams, the new mayor, described the metro’s financial situation as “alarming” and in a truly bad state, and also wonders how a huge deficit in the metro could occur in three months, which is a short space of time.
“A number of core indicators show a deeply troubling financial reality that my administration will need to urgently address to get the city back on track.” Williams said.
The new mayor has committed to investigating the status of the deficit and he is committed to providing monthly feedback on the status of Tshwane’s financial position.
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