City of Tshwane refutes claims of underspending

City of Tshwane refutes claims of underspending

The City of Tshwane on Friday denied reports that it failed to spend all of its conditional grants and subsidies.

Cilliers Brinks

On Thursday, the executive tabled a budget report detailing the municipality’s expenditure up until the end of March.

 

According to reports, the expenditure from the capital budget as of 28 June was R1.6 billion, or 83.5% of the total adjusted budget of R2 billion.

 

However, city spokesperson Selby Bokaba refuted the claim, saying the report tabled in council on Thursday covered the period until 31 March. 

 

Bokaba said the municipality’s financial year runs until the end of June.

 

"The report stated that the city had underspent its grants and subsidies funds by R1.5 billion by 31 March 2024, however, the report did not incorporate expenditure incurred in the fourth quarter – from April to June 2024.

 

"The total expenditure, including commitments (funds where purchase orders have been issued and awaiting delivery), is R1.8 billion, which translates to 92,9%.

 

"Expenditure on the capital budget started slowly from the beginning of the current financial year due to tighter controls that have been implemented aimed at ensuring better value, fixing the financial leaks and to comply with the findings of the auditor-general," he added.

 

In March, the auditor-general said the city obtained a qualified audit opinion, painting a fairly rosy picture of the state of governance in the municipality.

 

In February, the city requested the National Treasury not to cut R629 million in funding after it failed to spend money earmarked for urban development, public transport improvement and upgrading informal settlements.


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