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- Tshwane’s newly elected mayor, Randall Williams, announced a series of measures and budget cuts Thursday to stem the financial crisis facing the city.
- These measures included canceling all catering services for Tshwane council meetings and restricting international travel.
- Williams also gave a 10-point service delivery intervention plan.
Newly elected Tshwane Mayor Randall Williams has announced measures to curb spending, including cutting lunches for council meetings.
Less than a week after being elected mayor after Tshwane was placed under administration and the council dissolved earlier this year, Williams sought to take drastic measures as the city’s finances were in crisis.
“For more than seven months, the City had no political leadership or oversight over core operations,” Williams said during a news conference Thursday, where he elected the new mayor committee.
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“During the last few days I have been immersed in receiving information on all matters related to the current operational status quo in the City.”
“What I have found has been disturbing.”
Williams said that under the management team, appointed by the Gauteng provincial government after the city was put under administration, Tshwane’s financial situation had suffered immeasurably.
He said the tenure of the administrators was a “total disaster” when looking at the financial statements.
City finances
“In March, when we were removed, we had a surplus, according to the CFO and Acting City Manager, of R284 million; three months later, at the end of June, it turned into a R4.4 billion deficit,” Williams said. . .
The mayor also said that the debtor book had increased by more than R5 billion, which was ironic because the removal of the city’s district attorney was partly due to financial mismanagement.
“One of the examples they gave in court as an example of financial mismanagement was our debtor book. They said our debtor book was completely out of control and we couldn’t manage it.”
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“In March, when we were removed from office, the debtor book was R13 billion, so they said they needed to take over the administration of the City in order to implement a financial recovery plan.”
Seven months later, the debtor book was now at R18 billion.
“The overall credit status of the city has seriously weakened after being downgraded.
“Operationally, the city is also limping.”
Williams did not comment on whether Covid-19 played a role in the spending, but said that Finance MMC Marie-Louise Fourie would be looking into the shortfall to see where the money was spent.
Budget cuts and other measures announced
Williams said that in order to stabilize the City’s finances, budgets had been cut across all departments in order to provide basic front-line services.
Catering spending in the city would also cease and free lunches are gone, the mayor said.
“No matter the length of the meeting or the formality of the engagement, the City will not buy food.
“The events and conferences will have their budgets reduced and channeled towards the provision of basic services. Whenever possible, all these commitments will take place at Tshwane House or online.”
Williams added that all international travel would be restricted and that spending on consumables such as stationery and printing would be strictly controlled so that only basic and necessary items would be purchased.
“Travel abroad will only be considered when funded by external partners or donors.”
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These budgets would be revised with the intention of allocating the funds to direct them to the provision of basic services.
Williams said he also wanted to improve project management in the city by developing a strong internal capacity to ensure city projects are completed.
As a result, spending on consulting and contracted services would be significantly reduced.
“I also intend to squeeze every last drop of City savings that I can, so that we can restore financial stability.”
“It will begin with a scrutiny of all expenses that have been made in the last seven months, along with the implementation and monitoring of a financial recovery strategy.”
Williams also announced a 10-point service delivery intervention plan that will be presented to city top management.
This plan included:
1. Prioritization of the electricity grid and water infrastructure
2. Implementation of a solid Covid-19 management strategy
3. Create a reliable waste and waste disposal service
4. Provide strict financial management and oversight
5. Improvement of the city’s emergency and security services
6. Promote employment and economic growth in the city.
7. Support for the vulnerable and social assistance
8. Accelerate development by cutting red tape
9. Reduction of expansive financial costs in city processes
10. Maintain and expand road infrastructure.
Williams also ordered that there be a complete withdrawal of staff, as City employees working from home during the Covid-19 shutdown had hindered service delivery.
“This instruction has been executed and I have already seen staff return to the City,” Williams said.
“Aside from staff with serious illness and comorbidities, I want all Tshwane City staff in their offices to serve the residents of this city.
“All senior managers will be responsible for making sure their staff are on the job, are accountable, and are fulfilling their duties.
“It is time for the capital city to function again.”
