By Cllr Tshepiso Modiba
ActionSA Tshwane Caucus Spokesperson
ActionSA notes, with great concern, the exorbitant Unauthorized, Fruitless and Wasteful expenditure incurred for the 2023/24 financial year under the Brink administration.
Specifically:
• R3 billion in fruitless and wasteful expenditure; and
• R2.1 billion unauthorized expenditure.
Some of the biggest contributors to unauthorized expenditure can be attributed to overspending across several departments. Namely:
• Water and Sanitation R883.5 million overspent.
• Group Financial Services: R856 million overspent, with R1.3 billion wasted on debt impairment caused by deteriorating municipal revenue collection.
• Regional Operations: R366 million overspent, including excessive overtime and mismanagement of maintenance budgets.
• Shared Services: R40.5 million overspent, with millions squandered on mismanaged inventory and interest on overdue lease payments
The primary drivers of fruitless and wasteful expenditure are as follows:
• R599.7 million in interest payments to Eskom due to delayed payments.
• R214.2 million in interest payments to Rand Water, worsening Tshwane’s water supply crisis.
• R169.3 million in VAT interest, a clear indication of financial mismanagement and non-compliance.
These are not the actions of a financially responsible government. It now falls to the multiparty coalition government in Tshwane to wrangle the exorbitant waste and get spending under control.
To this end we are pleased that the current administration is, today, tabling a responsible Adjustments Budget.
ActionSA extends its gratitude to the multi-party government in Tshwane for presenting a responsible and considered 2024/25 budget adjustment. This significant achievement marks a crucial step towards sustained fiscal viability.
This will starkly contrast the out-of-control spending habits of the last administration.
This Adjustment Budget demonstrates a commitment to transparency and accountability, vital qualities needed to rebuild trust among residents in our local government.
By prioritizing essential services and ensuring that funds are allocated where they are most needed, the multi-party government is paving the way for improved service delivery across the City.
ActionSA acknowledges the collaborative efforts that led to this milestone, highlighting the importance of cooperation among various stakeholders to address the financial challenges faced by our City.
These proposed adjustments budget not only reflects the determination of the administration but also showcases a vision for thriving and prosperous Tshwane.
We are optimistic that the implementation of this budget will lead to tangible improvements in the lives of residents, ensuring that every individual has access to the necessary services they deserve.
As we look to the future, ActionSA remains committed to supporting initiatives that foster financial stability and service delivery in Tshwane.