Tsh­wane turns to sur­plus

Business Day - - NATIONAL - Claudi Mailovich Po­lit­i­cal Writer mailovichc@busi­nesslive.co.za

The City of Tsh­wane, ex­clud­ing the mu­nic­i­pal en­ti­ties, is no longer in deficit, mayor Solly Msi­manga says.

The metro’s unaudited fi­nan­cial state­ments at the end of the 2016-17 year showed it had a sur­plus of rev­enue over ex­pen­di­ture of R635m, he said.

When Msi­manga took over the reins, as ex­ec­u­tive mayor of the metro, it was in deficit of more than R2bn.

The city has an op­er­at­ing bud­get of R30bn for this fi­nan­cial year, with R3.9bn bud­geted for cap­i­tal ex­pen­di­ture.

Msi­manga said this was achieved by tight­en­ing fi­nan­cial con­trols over ex­pen­di­ture in line with the amounts ap­pro­pri­ated in the ap­proved bud­get for 2016-17. “We be­gan by op­ti­mis­ing pro­cure­ment pro­cesses to de­rive value for money, in­sti­tut­ing strin­gent bud­get con­trols and iden­ti­fy­ing and erad­i­cat­ing waste­ful ex­pen­di­ture,” he said.

Unau­tho­rised ex­pen­di­ture de­clined, from R1.6bn in 201516, to R634m in 2016-17.

The city spent R3.1bn out of the bud­geted R4.4bn of its cap­i­tal ex­pen­di­ture bud­get. It in­cluded R950m ear­marked for the pay­ment of as­sets re­lat­ing to the smart me­ter project. The pay­ment was put on hold pend­ing the out­come of the le­gal chal­lenge on the va­lid­ity of the orig­i­nal smart me­ter con­tract.

Mean­while, the city said on Thurs­day it had ap­proached the High Court in Pre­to­ria to set aside the Tsh­wane Broad­band con­tract with Tho­bela Tele­coms on the grounds that the pre­vi­ous ad­min­is­tra­tion had en­tered into the con­tract un­law­fully. The au­di­tor-gen­eral found in Novem­ber 2016 that the deal, worth R2.736bn, was ir­reg­u­lar. This find­ing prompted the ad­min­is­tra­tion to in­ves­ti­gate the pro­cure­ment of the deal.

Solly Msi­manga

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