Anyone elected to public office and tasked with the business of managing financial resources would do well to remember the straightforward and profoundly true words of Margaret Thatcher: “There is no such thing as public money; there is only taxpayers' money.” As the MMC for Finance in our country’s capital city, this is a maxim that follows me everywhere I go.
When the financial management of a government goes wrong, the results are almost immediately tangible. Service delivery suffers or collapses, safety and security fail, business confidence sinks, jobs, homes and businesses become places of risk rather than opportunity and the potential of talents and skills recede. But when the financial management of a government recovers after chaos and instability, the results are perhaps too often a bit vague or a bit slow in having a visible impact.
There is not much headline-grabbing fanfare and political prestige in fixing, step by step, the fundamental stability of a city’s finances. Yet, in local government, as with a household or a business, if the money is not coming in, and the money coming is not managed with the utmost sense of responsibility and prudence, painful results are not far behind.
In the context of our city’s government, this is the area of tax administration. So many hard-working, honest, decent residents of Tshwane meet their responsibilities month after month.
This multiparty coalition government and tax administration has been a moral crusade to stop the exploitation of the majority of residents by the kansvatters (chancers) and in so doing, stabilise the financial resources without which no services could be delivered.
Getting back to the fundamental truth that there is no such thing as public money; there is only taxpayers' money, allow me to set out how far we have come in showing residents and their financial contributions the respect they deserve.
The most tangible sign of progress lies in the city's growing cash collections. From January to August , monthly cash collection rose significantly from R2.8bn to R3.6bn. This steady increase in revenue has been vital for maintaining and improving services, a sign that the city’s multiparty coalition is rebuilding Tshwane's financial health after the hijacking of the city for eight months in 2020.
Halting this effort now would risk undermining these gains and cause future instability. Working across the government and with residents from all parts of the Tshwane area, we have managed to reinforce and revitalise debt collection mechanisms, ensuring that the city can collect on outstanding amounts owed to it that are critical to afford the service delivery focus of this government.
These measures have included options to help struggling residents get ahead and some less honourable debtors get the incentives required for them to stop grifting off the rest of our residents.
Since May, more than 70,000 robocalls have been sent each month, including 88,000 in August. The automated system is proving efficient, encouraging timely payments through value-for-money and measured efforts. A total of 153,433 final notices were issued to accounts owing R14.2bn between April and August. These efforts demonstrate a sustained push to recover overdue funds, showing the city’s dedication to stop the freeloading of some who believe that their honest neighbours should pay for every service delivered in our communities.
The intensified issuance of final demands has also reaped benefits. In August alone, 8,696 final demands were sent to accounts owing R1.9bn and the city managed to collect R458m. The steady collection over the months highlights the effectiveness of these measures — again targeted not at the folks who shoulder their share of funding services, but those who place themselves above the law.
A further escalation of our efforts has been so-called Section 129 notices. These notices are particularly important for accounts under the National Credit Act, 2005. In August alone, 12,128 such notices were sent and the city recovered R795m from accounts owing R944m.
We have also made sure that those who clean their slate and settle outstanding amounts get the benefit of doing the right thing. We have been able to significantly reduce the number of dunning locks — restrictions placed on disputed or problematic accounts. In June, 3,257 accounts totalling R1.27bn had dunning locks. By the end of August , this figure dropped to 1,730 , amounting to R1bn, with R232m collected from these accounts. The reduction in dunning locks signals a sharp improvement in resolving account issues, a necessary step towards stabilising the city’s finances.
Thanks to the hard work of residents, city employees and the multiparty coalition, we have made substantial strides together in turning around the city’s tax administration over the last few months
— Tshwane MMC for finance Cllr Jacqui Uys
The total debt owed by the top 500 accounts fell from R5.3bn in April to R4.4bn by August. Particularly notable is the reduction of business debt, where 303 business accounts’ debt decreased from R3.3bn to R2.5bn on average.
Ensuring that large debt holders meet their obligations is crucial for sustained financial health and the coalition’s focus on these accounts shows clear results that form the basis of quality and reliable service delivery for all.
Thanks to the hard work of residents, city employees and the multiparty coalition, we have made substantial strides in turning around the city’s tax administration over the last few months. These improvements are not only measurable but impactful. Stopping or reversing this progress now through shameless political sabotage would be harmful to financial stability and the service delivery due to Tshwane residents.
The city's tax administration is on the path to recovery due to the whole-of-society efforts of this government. Residents have stepped up and inspired officials to equal this strength of moral conviction. This government has put systems in place that are delivering results — from increased cash collection to effective credit control.
Halting these efforts now to indulge in political sabotage and grandstanding would risk undoing all the hard work the people of Tshwane have done to get the city back on track. Tshwane residents deserve a government that is committed to building a sustainable financial future.
Cllr Jacqui Uys is the City of Tshwane MMC for Finance
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.