The Democratic Alliance (DA) has alleged that the City of Tshwane is placing financial pressure on small, medium and micro enterprises (SMMEs) while prioritising the repayment of its debt to Eskom.
DA Tshwane Spokesperson for Finance Jacqui Uys says the African National Congress (ANC) is being hypocritical by accusing Executive Mayor Dr Nasiphi Moya of being against black owned businesses. She argues that many of the businesses affected by the City’s unpaid invoices are black owned SMMEs.
According to the DA, the City reduced its Eskom debt by R1.4 billion, but its trade creditors increased from R908 million to R1.44 billion. Uys says this represents an increase of more than R530 million in money owed to businesses providing goods and services to the municipality.
The DA further alleges that the actual amount owed could be higher because some invoices had not yet been captured or processed when the financial figures were compiled. Uys says the City’s Treasury has also acknowledged a backlog of unpaid invoices and is prioritising claims that are more than 90 days overdue.
The DA says it supports efforts to improve Tshwane’s finances and reduce Eskom debt, but argues that this should not come at the expense of small businesses. The party says its mayoral candidate, Cilliers Brink, has made five commitments aimed at improving service delivery while creating a more favourable environment for businesses to grow.
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