The metro is having trouble staying afloat due to financial issues revealed by the City of Tshwane.
The largest source of unauthorised spending in Gauteng is Metro.
The metro was downgraded by Moody’s last year and is currently managed by the Democratic Alliance (DA) in a coalition with the government. According to the City of Tshwane, it is struggling financially.
One aspect of this is the inability to pay service providers. Beginning in July, the Auditor-General noted that the metro had the worst performance in Gauteng and that it contributed the most irregular expenditure—R2.7 billion—to the province.
The City neglected to make payments to Tshwane Bus Rapid Transport for five months; the company was owed more than R100 million. Eskom, a power company in trouble, received R840 million from it after months of default.
After not being paid, tax collectors and security personnel recently demonstrated in front of the City of Tshwane’s administrative offices, according to SABC News.
There are “serious liquidity challenges,” according to Finance MMC.
According to Peter Sutton, finance MMC for the City of Tshwane, the situation is difficult and there are “serious liquidity challenges.”
“We are in a difficult situation, and it has to do with both the administrative procedure and the impact COVID disaster management had on people.
We are currently facing significant liquidity issues; we are struggling with collection; our payment levels are far below what they should be; and we are not recouping our costs.
The City of Tshwane is currently under a lot of stress due to a high debtors book that the AG has identified as well as other issues, according to Sutton.
Finally, City of Tshwane pays the enormous R876 million owed to Eskom.
As of 17 June 2022, the City of Tshwane Municipality’s debt to Eskom was supposedly due and payable.
It was previously stated that this debt had been settled for R876 million.
Eskom turned down the City’s invitation to enter into payment settlement agreements this week, thus the payment is the result.
According to Daphne Mokwena, Senior Manager for Customer Services at Eskom in Gauteng, the company appreciates the City of Tshwane’s payment and has faith in the city to honour future obligations.
Randall Williams, the executive mayor of City of Tshwane, tweeted in response to Eskom’s statement that residents would prefer to hear that the lights are back on.