Human Settlements, Urban Planning and Cogta MEC Lebogang Maile has written a formal letter to City of Tshwane mayor Randall Williams requesting him to respond to reports the metro is experiencing serious financial problems.
Maile advised Williams “it has been widely reported in the media that the city is experiencing serious financial problems”.
Today, Maile said the media reports highlighted the city’s failure to pay the salaries of staff on time or at all for September, struggling to pay Eskom and as a result facing the possibility of disconnection of electricity services, and its fleet was grounded because the municipality allegedly had no money to pay service providers who supplied it with diesel.
“These reports suggest that the city is experiencing serious financial problems,” Maile said.
Maile told Williams that “if the MEC responsible for local government in a province becomes aware that there is a serious financial problem in a municipality, the MEC is, in terms of section 136(1) of the Local Government: Municipal Finance Management Act No 56 of 2003 (“the MFMA”), compelled to promptly, (a) consult the mayor of the municipality to determine the facts; (b) assess the seriousness of the situation and the municipality’s response to the situation; and (c) determine whether the situation justifies or requires an intervention in terms of section 139 of the Constitution”.
Maile said he deemed it prudent to consult Williams in accordance with the cited provisions of the act, and in the spirit of co-operative governance, requested that the mayor provide the MEC, within seven days of receipt of the MEC’s letter, with a response on whether the city was experiencing serious financial problems.
Maile said he remained committed to working together with all municipalities in the province and to provide the necessary support to municipalities in distress in accordance with the dictates of section 154 of the Constitution.
Williams confirmed receiving the letter from Maile, however, he questioned the MEC’s decision to place his request for information “in the media space”.
“Today I received written correspondence from Maile on a request for information on the current financial position within the city. I note the request and will be responding accordingly,” said Williams.
“It would be appropriate to remind the MEC that many of the issues faced by the city today are a direct result of the R4 billion deficit that was incurred when he unlawfully placed the city under administration in 2020,” he added.
“They took the previous surpluses from the years before and wrecked them. We have systematically been working to turn around the finances of the city ever since. This information and further details will be communicated to Maile in my formal response,” Williams said.