Cllr Jacqui Uys – DA Tshwane Spokesperson on Finance
By Jacqui Uys
DA Tshwane Spokesperson for Finance
The Democratic Alliance (DA) has learned that the ANC Government in the City of Tshwane almost did not have enough money to pay its employees on payday.
Information available to the DA indicates that the City might only have had sufficient cash available in its bank account to process payroll by late afternoon on the day salaries were meant to be released.
If this was the case it confirms the DAs warnings about the citys worsening financial situation.
This latest development is consistent with the DAs warnings that Tshwane is rapidly running out of cash despite repeated assurances from the ANC administration that Tshwane has a funded budget.
Internal city reporting indicates that as at 15 June, the City was approximately R3 billion below the revenue collection targets set out in its Budget Funding Plan.
This significant under-collection, combined with decisions such as agreeing to pay unaffordable salary increases has placed immense pressure on the City’s cash resources and is now putting the livelihoods of employees at risk.
The cash constraints are also evident in the City’s treatment of creditors.
Suppliers whose invoices have already been approved for payment are increasingly being pushed to the back of the queue.
Equally alarming is the continued deterioration of the City’s debtor’s book, which has now grown to approximately R32 billion—an increase of R12 billion in just one year.
This points to a continued failure to collect revenue effectively and further weakens the City’s financial position.
The ANC administration continues to claim that Tshwane has a funded budget.
However, a funded budget on paper means very little when it is not supported by sufficient cash to meet the City’s day-to-day obligations.
Cash flow, not accounting assumptions, determines whether salaries can be paid, creditors honoured and services delivered.
The DA is committed to hold this government to account, but call on residents to register to vote so that a DA government led by Cilliers Brink can help you take back your city.
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