Maverick News

Tshwane Mayor Nasiphi Moya in talks to settle R6.7bn Eskom debt

30 Oct 2024

New City of Tshwane Mayor Nasiphi Moya outlined her 100-day plan on Wednesday to improve the city’s finances, revitalise the economy and prioritise service delivery.

The cash-strapped City of Tshwane is in talks with Minister of Electricity, and Energy Kgosientsho Ramokgopa to settle its R6.7-billion Eskom debt matter, possibly out of court.

Executive Mayor of Tshwane Nasipho Moya revealed this on Wednesday, 30 October 2024 at Tshwane House where she unveiled a 100-day action plan that she believes will serve as a foundation for a “decisive” turnaround by the end of January 2025.

She said the capital was in a dire financial position, with a debt of R11-billion, more than half of it owed to Eskom.

Not only is the capital facing huge debt, but it has since 2023 been struggling to pay creditors such as Eskom and Rand Water. Its financial troubles were further crippled by a protracted municipal strike by workers demanding a 5.4% salary increase. It is also still struggling to render basic service delivery functions.

Residents in parts of Tshwane have been grappling with intermittent water supply and frequent electricity outages, largely due to ageing infrastructure prone to breakdowns. Some residents have gone without refuse collection for weeks, leaving their streets filthy.

Read more: Promises, Promises, Promises – Hammanskraal residents despair of political solutions in killer water crisis

“The city is unable to respond to service delivery queries within the established time frame, with over 23,000 open service requests at the end of September,” Moya said.

Among other issues, the 100-day plan aims to decrease the capital’s Eskom debt by R1.6-billion by January 2025.

The plan comes after Moya was elected as the first citizen of Tshwane on 9 October 2024 after going head-to-head with her predecessor and DA councillor, Cilliers Brink. Moya was elected with 122 votes while Brink managed 86.

Her election came after Brink was removed through an ANC-sponsored motion of no confidence that was supported by councillors from political parties including the ANC, ActionSA and EFF, which collectively hold more than 110 seats in the 214-seat council.

Those who supported Brink’s removal cited the DA’s alleged arrogance and lack of service delivery in less-affluent areas, citing a stark difference between services provided in suburbs versus townships.

Read more: ActionSA’s Tshwane mayor Nasiphi Moya commits to stability in metro her party calls ‘effectively bankrupt’

While outlining her administration’s plan, Moya alluded to this.

“The stark contrast between affluent Waterkloof and impoverished Winterveld is a matter I hold close to my heart. No one should witness the conditions some residents live in without feeling deeply troubled by such inequality,” she said.

Despite the city’s persistent financial troubles, Auditor-General Tsakani Maluleke commended it for improving its outcome from an adverse audit opinion to a qualified opinion by taking steps to implement prior-year audit recommendations.

Read more: Municipal audit results continue to decline — irregular, wasteful expenditure balloons to R7.4bn

Moya’s administration priorities for the first 100 days in office include:

Financial stability

Moya says to provide better services to all residents, a strong financial position is essential. Her administration has set its eyes on improving financial performance and presenting a fully funded budget by March 2025.

To achieve this, the city needs to improve revenue collection, which involves enhancing billing practices, increasing revenue collection efforts and strengthening the Tshwane Ya Tima programme, which focuses on disconnecting defaulting clients.

Moya announced that significant progress had been made in this regard.

“The city is on track to achieve a record R4-billion in monthly collections, aiming for R4.4-billion by the end of the financial year. This is up from an average of R3.5-billion per month in previous months.

“It is critical that we establish a culture of payment. Key to this is moving away from billing customers on estimates, and billing them on actual readings. Our target is to reach 95% actual readings within our first 100 days.

“As part of this strategy we will also be doing an analysis of the city’s debtors book of R28.3-billion to classify debt according to potential of recovery,” Moya said.

Economic revitalisation

Moya said that in the coming months, the city would introduce a strategy to revitalise the inner city and other economic areas by identifying city-owned and abandoned properties for private sector-led mixed-use developments, including affordable housing and student accommodation.

It has already identified the underutilised Tshwane Showgrounds as a facility that has the potential to become a world-class conference centre.

“Similarly, we have engaged the Gauteng Provincial Government on the issue of underutilised industrial areas such as Ekandustria, Babelegi, and Ga-Rankuwa, urging their intervention to reignite growth. These previously thriving industrial hubs now stand as shadows of their former selves, depriving local residents of much-needed job opportunities,” Moya said.

Infrastructure development

While the city’s budget restricted its ability to address all infrastructure issues right away, Moya said they would enhance capital project management. Priority would be placed on restarting suspended projects in townships and informal settlements.

“Our goal is to implement robust project management strategies so that by the end of the financial year, 100% of the capital budget is spent and no grant funding is returned due to under-expenditure.”

Daily Maverick has previously reported that Tshwane stands to have more than R600-million in conditional grants taken back by the National Treasury.

Read more in Daily Maverick: Short-changed — National Treasury threatens to halt more than a billion rand to Gauteng metros

Service delivery

“For too long, many residents have felt abandoned and neglected in terms of basic service delivery. The new administration is here to restore hope and provide equitable services. Once again, let me say that delivering quality basic services will not be a matter of politics, but of principle,” Moya said.

Our goal is to improve lighting in areas that have long been left in darkness. We are also putting measures in place to accelerate response times for water leaks and sewer blockages, aiming to address 90% of complaints within 48 hours, with a long-term target of 24 hours. These issues account for the majority of complaints received by the city.”

By-law enforcement and inner-city rejuvenation

With calls for the government and its institutions to enforce bylaws more strictly to prevent the sale of harmful food, following a rise in food-related illnesses and fatalities in the province, Moya said her administration intended to intensify spaza shop inspections in all seven regions, in partnership with law enforcement agencies and other stakeholders.

“Enforcement operations will also cover liquor licence compliance, street-vendor trading, and public amenities by-laws. We will also focus on waste management, illegal dumping, and policing derelict buildings,” Moya said.

“Over the longer term, our goal is to build a professional, responsive, and highly functional metro police unit that can ensure the safety and security of all. Ensuring a safe city is non-negotiable for Tshwane’s prosperity,” she added.

DA caucus leader Kwena Moloto largely welcomed Moya’s plans, some of which, he said, had been an extension of the previous DA-led multiparty government.

Moloto called on Moya to take leadership on the long-standing issue of Hammanskraal water and follow through with the plan devised by her predecessor. DM

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