Issued by Fred Nel, DA Tshwane spokesperson on Public Accounts
The Democratic Alliance has confidentially learnt that the Tshwane Council’s cash flow headache has now reached crisis proportions.
“Our information from reliable sources is that the Council is struggling with its cash flow and that its officials are scratching their heads to find enough income to pay salaries at the end of the month” said Fred Nel the DA’s spokesperson on Public Accounts in the Tshwane Metro.
“We were aware that there were concerns about the Council’s cash flow last month when a turnaround strategy for its finances was submitted to Council, despite the Mayor assuring Council that there were no problems with the Council’s finances. Why would we need a turnaround strategy when there was nothing wrong with Council’s finances? The item was withdrawn from the agenda when the DA wanted to discuss the content of the report at the meeting.” said Nel.
The DA is concerned that the turnaround strategy seemingly followed by Council only concentrates on cutting expenses and freezing vacancies in the Council but ignores collecting money owed to the Council. The Council’s outstanding debtors amounts to an excess of R 3 billion.
“Current debt collection strategies are failing and the lack of political will to collect on outstanding debts is pushing the Council further into the red. We warned council in August already that this was going to happen but the ANC did not listen. If the DA was in control we would have concentrated in getting the money in instead of cutting expenses which could negatively affect service delivery.” said Nel.
The DA calls on the Mayor to ensure that a suitable and realistic turnaround and debt collection strategy is tabled at the next Council meeting in order to address this crisis. Although, by then it may already be too late.
“Our information from reliable sources is that the Council is struggling with its cash flow and that its officials are scratching their heads to find enough income to pay salaries at the end of the month” said Fred Nel the DA’s spokesperson on Public Accounts in the Tshwane Metro.
“We were aware that there were concerns about the Council’s cash flow last month when a turnaround strategy for its finances was submitted to Council, despite the Mayor assuring Council that there were no problems with the Council’s finances. Why would we need a turnaround strategy when there was nothing wrong with Council’s finances? The item was withdrawn from the agenda when the DA wanted to discuss the content of the report at the meeting.” said Nel.
The DA is concerned that the turnaround strategy seemingly followed by Council only concentrates on cutting expenses and freezing vacancies in the Council but ignores collecting money owed to the Council. The Council’s outstanding debtors amounts to an excess of R 3 billion.
“Current debt collection strategies are failing and the lack of political will to collect on outstanding debts is pushing the Council further into the red. We warned council in August already that this was going to happen but the ANC did not listen. If the DA was in control we would have concentrated in getting the money in instead of cutting expenses which could negatively affect service delivery.” said Nel.
The DA calls on the Mayor to ensure that a suitable and realistic turnaround and debt collection strategy is tabled at the next Council meeting in order to address this crisis. Although, by then it may already be too late.
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