New Tshwane mayor warns of bankruptcy as he appoints MMCs
Updated | By Gaopalelwe Phalaetsile
The City of Tshwane is facing a deficit of R4.4 billion and is R5 billion in debt, according to its newly appointed mayor Randall Williams.
Williams made the revelation on Thursday during the instruction of the members of his mayoral team.
“You might have read the city’s financials are in crisis. A ballooning deficit of R4.4 billion has been inherited from the last financial year. Collection rates are down, the debtor's book has increased by over R5 billion since the DA was removed in March this year. The overall credit status of the city has been severely weakened after being downgraded," he said.
Williams said there is an economic recovery plan which needs to be refined and which will include severe cost-cutting measures.
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"I believe that a city needs to live within its means and it’s important that we don't bankrupt the city. The city has negative finances and we need to recover from that. If this situation continues at the end of this financial year this city will be bankrupt," added Williams.
Marie-Lisa Fourie has been repointed as MMC for Finance and will lead the recovery plan.
The team also includes Bruce Lee, who the new MMC for Economic Development and Spatial Planning.
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