'Broke' Tshwane wants R1bn

05 June 2014 - 02:00 By Kingdom Mabuza
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City of Tshwane. File photo
City of Tshwane. File photo
Image: SUPPLIED

The City of Tshwane is in the red and is battling to fulfil its obligations such as service delivery and settling debt.

The Times has reliably learned that the capital city has asked the Gauteng government's department of human settlements and local government for R1-billion.

Recent reports said the city's water and electricity arrears, and its debt for the financial year that ended in June last year, amounted to R4.7-billion.

But human settlements and local government spokesman Motsamai Motlhaolwa has denied that Tshwane has asked the province for a bailout.

He said the R1-billion will be used to help pay the costs the metro incurred in incorporating the Metsweding municipalities.

"The city, as such, is not asking for a bailout," said Motlhaolwa.

Tshwane merged with Metsweding and its two municipalities, Nokeng Tsa Taemane and Kungwini, in 2011.

The merger has put huge strain on the city's finances because it took over the debt of the municipalities.

The city has struggled for years to balance its books and has said it will need provincial help to meet rising social expectations.

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