ActionSA claims Tshwane municipality close to being insolvent
Prior to ActionSA’s withdrawal from the coalition that has been governing the capital since the 2021 local government elections, the party undertook a review process, which included assessing the city’s finances over the past three financial years.
Picture: Wikimedia Commons
JOHANNESBURG - ActionSA has raised concerns over theTshwane metro’s finances, with its own report stating that the capital city is close to being insolvent.
The party recently withdrew from the coalition governing the capital since the 2021 local government elections.
However, prior to their withdrawal, the party undertook a review process, which included assessing the city’s finances over the past three financial years.
A 15-page report of its findings was recently presented during a meeting of the party’s highest decision-making body, the Senate.
In a recent media briefing, Tshwane Mayor Cilliers Brink stated that the capital city was making an economic comeback and was on track to be cash positive by the end of the next financial year.
These assertions are in line with ActionSA’s review report.
The report states that revenue for the city has increased from R39 billion in 2021 to over R48 billion in 2024.
However, what is concerning for the city is that its expenditure has followed a similar trajectory.
ActionSA’s report said the city has consistently failed to meet its targets on capex projects, service delivery, and budget implementation performance.
The report also notes that the city’s debt-to-revenue ratio stands exactly at the National Treasury cap of 45%.