The City of Tshwane has strongly rejected claims that it is facing financial distress or that it came close to being unable to meet its payroll obligations, insisting that its finances remain stable and properly managed.
In a statement issued by the Deputy Executive Mayor and MMC for Finance, Cllr Eugene Modise, the City described recent allegations by the Democratic Alliance (DA) as false and misleading. The City said there was never any point at which it was unable, or at risk of being unable, to pay employee salaries on time.
According to the municipality, salary payments are managed through established treasury processes that ensure payroll is planned well in advance and executed without delays. The City further stated that after employee salaries were processed, it still maintained a positive bank balance of approximately R1.8 billion, which it says contradicts suggestions of a cash shortage.
The City also dismissed claims that it was significantly underperforming on revenue collection. It said that as of 26 June 2026, it had already collected more than R3.6 billion for the month, exceeding its monthly revenue target as set out in the City’s funded budget. It added that year-to-date revenue collection stood at approximately 98% of projections in its Budget Funding Plan.
Municipal officials further argued that this performance reflects consistency in revenue management and does not support claims of a multi-billion rand shortfall. They said the figures cited by the opposition were inaccurate and did not reflect the City’s actual financial position.
The City also highlighted what it described as continued financial stability through its ability to meet major obligations. It pointed to the successful settlement of a R1 billion bullet loan during June and said it remains up to date with its Eskom debt repayment arrangements.
In addition, Tshwane said its capital expenditure performance has improved, contributing to National Treasury allocating an additional R300 million to the municipality. It also reaffirmed that its budget has been assessed and classified as a funded budget in terms of the Municipal Finance Management Act, following a technical evaluation by National Treasury.
The City further stated that its debtors’ book is beginning to show improvement due to ongoing revenue enhancement and debt collection interventions.
While acknowledging that public oversight of municipal finances is legitimate, the City warned against what it described as the misrepresentation of financial information for political purposes. It said inaccurate claims risk creating unnecessary panic among residents, employees, and investors.
Tshwane maintained that its financial position continues to improve and that it remains committed to disciplined financial management, service delivery, and long-term fiscal stability.
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