The Democratic Alliance (DA) in Tshwane has alleged that the City of Tshwane came dangerously close to being unable to pay employees on time due to severe cash flow constraints.
According to the party, information available to it suggests the City only had enough money in its bank account to process employee salaries late in the afternoon on payday. The DA says if this is accurate, it reflects the worsening financial position of the municipality despite assurances from the ANC-led administration that the City’s budget remains fully funded.
The DA further claims that internal municipal reporting indicates that, as of 15 June, the City had collected approximately R3 billion less in revenue than projected in its Budget Funding Plan. The party argues that the revenue shortfall, together with decisions such as approving salary increases it considers unaffordable, has placed significant pressure on the City’s cash reserves.
The opposition party also raised concerns over payments to service providers, alleging that suppliers with approved invoices are increasingly experiencing delays as the City prioritises limited available funds.
In addition, the DA says the City’s debtors’ book has grown to approximately R32 billion, an increase of around R12 billion over the past year. It argues that the rising debt reflects ongoing challenges in revenue collection and further weakens the municipality’s financial position.
While the ANC-led administration maintains that Tshwane has a funded budget, the DA contends that a budget on paper does not guarantee sufficient cash to meet daily financial obligations, including paying salaries, settling creditors and maintaining service delivery.
The DA says it will continue to hold the City’s leadership accountable over its financial management and has urged residents to participate in future elections as the party seeks to regain control of the municipality.
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