By: Sello Theletsane
The Democratic Alliance has for years boasted about how it prides itself on excellent governance standards, guided by the values of accountability and transparency. However the party’s track record since taking over three Gauteng metros: City of Joburg, Tshwane, and Ekurhuleni after last year’s local government elections suggests the direct opposite.
Africa News Global can reveal that despite collecting billions in municipal rates from ratepayers, and just months after receiving billions of rands in grants from National Treasury, the three metros run by DA-led coalitions are on the verge of financial collapse.
Sources said the DA could not blame any of its coalition partners since all finance portfolios in the three metros are in the hands of its members of the mayoral committee (MMCs). Sources attributed the imminent bankruptcy facing the three metros purely to maladministration and bad financial management by the DA.
In Joburg, the city has not been able to pay service providers since July as a result of the dire financial crisis it faces. Insiders have told Africa News Global that the financial situation was dire mostly due to City Power budgeting model. The sources said this was aggravated by the DA’s rejection of an advice from the City’s Treasury Department to rebase budgets.
Sources added that to urgently address the crisis, a turnaround strategy was needed to address entities of the city including City Power, Johannesburg Development Agency (JDA), Johannesburg Housing Company (JOSHCO), Metrobus, and Johannesburg Property Company (JPC). “It’s their funding model that is highly problematic,” said the source.
Tshwane is also facing a financial crisis of its own. Recently, Eskom threatened to disconnect its electricity supply to the city over its R1.6-billion debt. This after the city had only paid R68-million, which did little to dent the massive outstanding balance on its electricity account,” Eskom said.
The threat of power disconnection by Eskom was averted after the city coughed up. However, the ANC in Tshwane is not convinced that the city has fully settled its outstanding Eskom bill. It has accused Tshwane mayor Randall Williams of lying to the public and has demanded that he produce proof of payment and the exact date when the Eskom bill was settled.
BREAKING NEWS – Residents of Tshwane need Eskom proof of payment of R1.622 Billion for August 2022 bill or we're switched off!
The Mayor misled and lied to the public about the Eskom payment settlement.
Questions:
Produce proof of payment, how much was paid and when?Simple!
— Kgoši Maepa (@kgosi_maepa) September 27, 2022
This week, Tshwane, which pays its more than 25 000 employees’ salaries on the 26th of every month, failed to pay them on time. While the city blamed “banking glitch” on the non-payment of employees’ salaries on time, insiders attributed this to the current financial crisis the city is facing.
BREAKING NEWS – Tshwane Mayor to face PERJURY charges, for "Blue Lies" that he paid ESKOM!
Randall Williams lied to residents about settlement to ESKOM for August bill R1.622 B, I challange him to produce evidence of payment or face charges of PERJURY. He has until 4pm tomorrow!
— Kgoši Maepa (@kgosi_maepa) September 28, 2022
The situation in Ekurhuleni is equally dire. Sources have told Africa News Global that the city has issued a moratorium, stopping the implementation of all new projects, implying that the city is no longer able to render much-needed services to millions of residents of Ekurhuleni.
Africa News Global sent detailed questions to Gauteng DA leader Solly Msimanga whose only response was: “There are mayoral spokespersons in those municipalities you can contact and ask the questions.”
This is what I’m everytime saying that, white people and money is the same Whatsapp group