The ANC’s attempt to portray Executive Mayor Dr Nasiphi Moya as “anti-black business” is the height of hypocrisy.
The same ANC that now claims to be the defender of black-owned businesses is presiding over a financial strategy that leaves many SMMEs, many of which are black-owned, unpaid while prioritising Eskom repayments.
The City’s own financial records expose this. The latest creditor analysis shows that, while Eskom debt was reduced by R1.4 billion, trade creditors increased from R908 million to R1.44 billion, an increase of more than R530 million.
Moreover, the City’s budget report repeatedly acknowledges that invoices across numerous departments had not yet been captured or processed at the reporting date.
This means that the reported R1.44 billion owed to trade creditors almost certainly understates the true amount owed to SMMEs.
In an internal communication, the City’s Treasury confirms that there is a backlog of unpaid invoices and states that it is only clearing claims that are more than 90 days old, including claims from SMMEs that have been waiting for payment “for a long time”.
The City’s financial position has not fundamentally improved, it has merely shifted its cash-flow burden onto businesses that can least afford it.
In effect, Tshwane’s SMMEs have become the City’s interest-free line of credit.
The DA supports restoring Tshwane’s financial sustainability and recognises the importance of reducing the City’s Eskom debt. However, financial recovery cannot be built on the backs of small businesses.
For this reason, the DA’s mayoral candidate, Cilliers Brink, has made five pledges to the residents of Tshwane to ensure a City that can deliver services while creating a climate of economic growth, where businesses have the opportunity to expand rather than become the municipality’s cash cows.