COSATU Gauteng condemns the City of Tshwane’s reckless management of finances 

08 February 2024

The Congress of South African Trade Unions (COSATU) in Gauteng condemns the City of Tshwane’s worsening financial crisis. The city’s escalating debt, currently standing at almost R3.9 billion owed to Eskom, raises serious concerns about its ability to meet its financial obligations and deliver essential services to the residents.

Furthermore, the recent revelation from the Johannesburg Stock Exchange (JSE) that the City of Tshwane failed to meet the deadline for submitting its financial statements in relation to the trade in Tshwane bond is worrisome and has a potential of impacting negatively towards the investors’ confidence.

In addition, the Auditor General’s (AG) report highlighting the City of Tshwane’s disregard for advice to rectify financial statements is deeply troubling. Ignoring such counsel not only puts the city at risk but also raises questions about the commitment to sound financial governance. The use of the term ‘rubbish’ to describe financial statements is indicative of a concerning lack of seriousness and responsibility in managing public funds.

The mounting debt not only poses a significant risk to the municipality’s ability to conduct business but also jeopardizes the timely payment to service providers. This situation could have severe repercussions, as service providers may find themselves waiting for payments that may not materialize, potentially leading to disruptions in the delivery of basic and essential services to the community.

The arrogance by the City of Tshwane and its mayor is adversely affecting service delivery particularly in working class areas.  It is also unsettling that an indebted city could appoint the Deputy Mayor as a sweetener to their coalition partners, yet they fail to exercise the same with workers and service providers.

COSATU Gauteng calls on the City of Tshwane to urgently address its financial challenges, engage with relevant stakeholders, and take immediate steps to rectify its financial mismanagement. Transparency and accountability must be prioritized to restore the trust of both residents and businesses in the city’s governance.

The residents of Tshwane deserve reliable and efficient service delivery and the City has failed dismally. For these reasons we are calling for the disbandment of the City of Tshwane municipality and call for elections within the next three months.

Issued by COSATU Gauteng

Provincial Chairperson (Amos Monyela): 079 493 5002

Provincial Secretary (Louisah Modikwe): 066 182 2402 / 0822972659