City of Tshwane deputy mayor and MMC for finance Eugene Modise photo by Dimakatso Modipa
By Cllr Eugene Modise
Tshwane Deputy Executive Mayor & Finance MMC
We have noted a misleading statement by the opposition falsely suggesting that the
City of Tshwane was unable, or at risk of being unable, to pay its employees’
salaries.
These claims are categorically false and appear to form part of a desperate attempt
to undermine the financial progress achieved by the current Multi-Party Coalition Government.
The facts speak for themselves.
At no stage was the City unable, or likely to be unable, to meet its payroll obligations.
Salaries are planned well in advance through established treasury management
processes to ensure that employees are paid on time.
After paying employee salaries, the City still maintained a positive bank balance of
approximately R1.8 billion.
The suggestion that the City “came dangerously close to not making payroll” is therefore demonstrably false.
Equally misleading are the claims regarding the City’s revenue performance.
As at 26 June 2026, with revenue collection still continuing until the close of business on the final working day of the month, the City had already collected more than R3.6 billion for June, surpassing the monthly target contained in the City’s Funded Budget.
On a year-to-date basis, the City has collected approximately 98% of the revenue
projected in its Budget Funding Plan.
This is broadly consistent with the City’s collection performance over the corresponding period in the previous financial year and bears no resemblance whatsoever to the fictitious R3 billion shortfall claimed by the opposition.
The City’s financial position is further demonstrated by its continued ability to honour major financial commitments.
During June, the City successfully settled a R1 billion bullet loan when it fell due and remains fully up to date with its obligations under the Eskom debt repayment
agreement.
These are significant financial commitments that reflect disciplined financial management and prudent treasury planning.
The City’s financial recovery is also evident in its improved capital expenditure
performance, which resulted in National Treasury allocating an additional R300
million to the City.
This is not a political opinion.
It is recognition of improved financial
and capital programme performance.
Similarly, the City’s Budget has been assessed by National Treasury against the
stringent requirements of the Municipal Finance Management Act and has been
classified as a funded budget.
This is the outcome of a rigorous technical
assessment undertaken by experienced financial professionals against nationally
prescribed standards.
The opposition conveniently ignores this fact because it was unable to achieve a
funded budget throughout its term in office.
Having failed to do so for four consecutive years, it now seeks to discredit an administration that has restored the City’s finances to the point where it has achieved one funded budget and is confidently progressing towards a second.
The City’s debtors’ book has also begun to decline as a result of focused revenue
enhancement and debt collection interventions, further strengthening the City’s long-term financial sustainability.
The opposition is entitled to scrutinise the City’s finances.
It is not entitled to misrepresent them.
There is a significant difference between robust political oversight and deliberately
distorting financial information to create unnecessary panic among employees, residents, businesses and investors.
Public confidence in the Capital City’s finances should never become collateral damage in an election campaign.
The Multi-Party Coalition Government inherited serious financial challenges.
Through disciplined financial management, improved revenue collection, stronger expenditure controls and responsible governance, the City continues to strengthen its financial position while honouring its obligations and restoring long-term financial sustainability.
The residents of Tshwane deserve an honest debate based on facts.
They do not deserve fabricated financial crises, misleading figures or political fearmongering designed to distract from the City’s measurable financial progress.
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