City of Tshwane squeezed to pay salaries – DA
· Citizen
The Tshwane DA is accusing the coalition in the city of nearly missing its employees’ pay day.
DA spokesperson for finance Jacqui Uys said the city came dangerously close to not making payroll this past month.
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DA accuses Tshwane coalition of near payroll crisis
“Information available to the DA indicates the city might only have had sufficient cash available in its bank account to process payroll by late afternoon on the day salaries were meant to be released. If this was the case, it confirms the DA’s warnings about the worsening financial situation.”
Uys said internal city reporting indicates that as at 15 June, the city was about R3 billion below the revenue collection targets set out in its budget funding plan.
“This significant under-collection, combined with decisions such as agreeing to pay unaffordable salary increases, has placed immense pressure on the city’s cash resources and is now putting the livelihoods of employees at risk,” she added.
Uys said the cash constraints are also evident in the treatment of creditors. Suppliers whose invoices have already been approved for payment are being pushed to the back of the queue.
However, MMC for finance Eugene Modise dismissed the claims about the city’s financial position.
“These claims are false and appear to form part of a desperate attempt to undermine the financial progress achieved by the current multiparty coalition government.
Finance MMC denies claims
“At no stage was the city unable, or likely to be unable, to meet its payroll obligations.
“Salaries are planned well in advance through established Treasury management processes to ensure employees are paid on time.”
Modise said after paying employee salaries, the city still maintained a positive bank balance of approximately R1.8 billion.
“The suggestion that the city came dangerously close to not making payroll is therefore demonstrably false,” he added.
Modise said the claims regarding the city’s revenue performance were equally misleading.
“As at 26 June, with revenue collection still continuing until the close of business on the final working day of the month, the city had collected more than R3.6 billion for June, surpassing the monthly target contained in the city’s funded budget.”
Modise says city collected R3.6 billion and debts declining
On a year-to-date basis, the city has collected about 98% of the revenue projected in its budget funding plan.
“This is broadly consistent with the city’s collection performance over the corresponding period in the previous financial year and bears no resemblance whatsoever to the fictitious R3 billion shortfalls claimed by the opposition,” he said.
“The city’s financial position is further demonstrated by its continued ability to honour major financial commitments,” Modise added.
He said the opposition ignores this fact because it was unable to achieve a funded budget throughout its term in office.
“Having failed to do so for four consecutive years, it now seeks to discredit an administration that has restored the city’s finances to the point where it has achieved one funded budget and is progressing towards a second.
“The city’s debtors’ book has also begun to decline.”