The Democratic Alliance (DA) calls on Councillor Eugene Modise, the newly elected Deputy Executive Mayor and ANC member of the mayoral committee for finance in the City of Tshwane, to pay his huge overdue municipal debt of R690 000 as at 31 March 2024.
This, or a payment arrangement with the municipality, is the least that the Finance MMC can do considering Tshwane’s constrained finances.
Yesterday, I met with councillor Modise to do a handover report in respect of the Group Finance Department to enable him to fulfill his work as member of the mayoral committee for the portfolio concerned.
The key to improving service delivery and the rollout of infrastructure in the City of Tshwane is to improve the city’s financial position. This requires the continuation of the work as outlined in the Mayoral Charter on Financial Rescue as well as the Budget Funding Plan.
The strategy is, in essence, to rebuild key aspects of the revenue value chain, to improve collections, as well as addressing the more structural problems such as an outdated property valuation roll, electricity tariffs which are not cost reflective, and trading services which do not yield a surplus. As the City’s cashflow improves, which it has under the strategy, so will the credibility of our representations to Eskom. This will place the City in a favourable position to negotiate a debt payment plan which includes the write-off of interest.
The most difficult, and unpopular aspect of Tshwane’s financial recovery is vigorous credit control (including Tshwane ya Tima) as well as the disconnection of illegal water and electricity connections. Credit control must be applied equitably. Of course more effort must be expended by the City where there is a credible prospect of success, and that why the Mayoral Charter has placed emphasis on the top 500-1000 consumers. But without an overall culture of paying for consumption beyond Tshwane’s generous basket of free basic services, the City will not achieve financial rescue.
Modise has been set up for success by the efforts put in place by the previous DA-led coalition and although the unaudited financial statements of the City for 2023/24 show significant financial improvement, and depending on the management of the audit process, the City is likely to attain an unqualified audit, the City’s financial recovery still needs very careful and diligent work. Without a culture of payment the City will be financially unsustainable in the medium term and it is essential that members of the Mayoral Committee not owe arrear debt to the City, or at least if they do, that they make payment arrangements. Leaders must set the example.