JOHANNESBURG - The City of Tshwane has announced what it calls a bold five-point plan to claw back the embattled municipality from the brink of financial ruin.
The capital city’s finances are in dire straits as it continues to sink deeper into debt.
Lower revenue collection and higher expenses are among the biggest culprits for the city’s deteriorating finances.
The City of Tshwane says its debtor's book is sitting on R23.3 billion in money owed to the municipality.
The massive debt owed to it means the city has also fallen behind on its electricity bill, and has also failed to pay service providers on time.
The cost of the city’s poor finances has put millions of its residents at risk of shoddy service delivery.
But Tshwane Mayor Cilliers Brink said his latest recovery plan could turn the city’s finances around in six months.
“I am under no illusion that the full R23.3 billion is collectable. Some of that might be old and uncollectable, but if you look at that the top thousand arrear consumers that owe us money, that already represents R6 billion - and if that is collectable, then it is certainly collectable in the next six months.”
In addition to credit control measures and improved debt collection, Brink said his strategy also included reducing bulk expenses.