Tshwane mayor Nasiphi Moya tables first self-funded budget since 2022

Tshwane mayor Nasiphi Moya says the city's finances are on the mend.

This comes after she tabled the city's fully funded budget, hailing it as one of the key milestones achieved by her administration since coming into office 175 days ago. This is a first for the capital city in three years, with the last funded budget having been tabled in 2021/22.

Moya believes this is a key step towards securing the city's financial stability and ensuring consistent and reliable service delivery.

“The multiparty coalition government tabled a credible, fully funded draft budget to council for public consultation in March this year. Total grant allocations for 2025/26 amount to R7.4bn, comprising of R5.5bn for operational grants, R2bn for capital infrastructure and R152m through the new urban development financing grant,” she said.

The mayor revealed R2bn in capital grants and R430.5m in internally generated revenue and donations as the city's funding sources for the financial year.

“It is important to note that this budget has been fully funded without relying on borrowing — avoiding any additional debt that would worsen the city’s already strained financial position.

“While no borrowing is planned for the 2025/26 financial year, this may be reconsidered in future years, subject to the city’s financial recovery and improved debt capacity.”

Moya said this was just one of the strides taken by her administration to drive their coalition's core priorities, which are focused on:

• financial stability;
• economic development; and
• improved, equitable service delivery.

“As part of our government’s commitment to restoring Tshwane’s financial health, addressing historical debt remains a key priority,” she said.

Part of the highlights include the city's payment of more than R1bn towards its Eskom debt, bringing the bill to R5.66bn. “This takes place just three months after concluding a historic payment agreement with Eskom. This progress reflects our determination to meet our obligations and secure energy stability for our residents.”

Another financial headache for the capital was the R4.7bn VAT debt linked to the cancelled PEU smart meter contract. Despite it being entered into by previous administrations, the contract was highly controversial and financially burdensome. While the city successfully exited the contract, Moya reported it was left with a significant tax liability.

“We have now made a final payment of R128m, clearing this debt in full. Sars has formally acknowledged the settlement. This marks a major milestone in closing a difficult chapter in the city’s financial history and demonstrates the multiparty coalition government’s resolve to clean up the past and build a sustainable future.”

In stabilising the capital's coffers, the mayor detailed how the administration had to take a look at its debtors' book and address historical debt. She said the city's debt has been reduced by 13.19% since February and is now R25.69bn.

“This progress has been made possible by intensified revenue collection efforts, including the Tshwane Ya Tima campaign and the Debt Relief Scheme approved by council. These efforts are helping us recover what is due to the city, while also giving much-needed relief to residents.

“A total of R2.42bn has been written off registered indigent accounts, with R1.83bn written off from more than 31,500 inactive accounts.”

The mayor and her executive will be approaching council on Thursday to seek an extension of the debt relief scheme by a further three months to allow for more residents and businesses to benefit from the offering.

Moya detailed the establishment of a monthly executive audit tracking committee to monitor the city's progress in its efforts to claw back from the adverse audit findings made by the auditor-general (AG) last year.

“In our efforts to achieve an unqualified audit, which remains a priority for this administration we appointed the AG to conduct a pre-audit and in doing so have furnished them with the files which were submitted on March 31.

According to the mayor, consequence management, which was highlighted by the AG, is being addressed and progress is being made. “Two officials have been arrested by the police for fraud, eight companies are in the process of blacklisting and an electrician in the energy and electricity department has been dismissed.

“Group financial services will continue to monitor the progress through the Circular 113 Audit Action Plan meetings held weekly.”

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