City of Tshwane’s financial woes could soon be even more catastrophic

Reading Time: 2 minutes

The City of Tshwane’s financial woes could soon be even more catastrophic despite the rescue plan tabled earlier this week. National Treasury might revoke some of Tshwane’s Capital funding if the municipality doesn’t motivate why it’s been underspending on its development grants. If the funds are revoked, this could further cripple service delivery.

Briefing the media in Pretoria, the ANC in the Capital City says it wants heads to roll for the underspending of grants while service delivery is severely impacted. Tshwane has only spent 40% of its over R2,6 billion of grant funding meant for pressing service delivery needs.

Tshwane’s City Manager, Johann Mettler has until Friday to convince Treasury not to revoke the much-needed funding for the municipality. They might forfeit millions due to underperformance and noncompliance.

The ANC in Tshwane held a media briefing, accusing the DA-led Coalition of collapsing the city by its failure to spend the grants, on much-needed services like fixing the water infrastructure in areas like Ikageng where residents have not had water for over five years.

The party says the recent municipal workers’ strike cannot be used as an excuse for the DA-led Coalition not to roll out the service delivery projects.

On the other hand, the DA is adamant that they will put up good motivation to save the needed funds.

“Money will be spent before 30 June this year,” says Kwena Moloto, DA Tshwane caucus spokesperson.

The grants are meant to help with infrastructure projects, to resolve the water crises, fix potholes, and to clean communities, especially townships.

“We will come up with strategies to push for accountability,” says George Matjila, ANC Regional Secretary.

Despite funds being available, dozens of projects have been delayed or completely halted in particularly the townships. The Tshwane deputy mayor has recently started to revive the neglected projects, but the ANC says this is all about electioneering.

The ANC in Tshwane is also accusing the DA-led coalition of deliberately delaying the much-needed capital project, that would’ve mostly benefitted townships, where the ANC hold on the majority of wards. The party says it was a carefully calculated move to only start the projects before the elections.