by Cllr Randall Williams – DA Tshwane Mayoral Candidate
Date: 24 September 2020
Release: Immediate Moody’s credit agency has announced that the City of Tshwane will be downgraded by one notch as a long-term issuer from Ba1 to Ba2 with a sustained negative outlook for the City.
This decreased credit rating is a direct result of the ANC’s unlawful coup in the City and the imposition of incompetent ANC administrators who have mismanaged the City’s finances.
Moody’s has indicated that the downgrade is as a result of the city’s weakened operating performance and liquidity.
The City of Tshwane has recorded one of the lowest revenue collections rates for 2020 at 81.4%. The average should be at 87%.
At the end of 2019 the Democratic Alliance (DA) had built up the city’s cash and cash equivalents to R4.8 billion.
With the ANC having access to the City’s coffers, it now stands at R2.2 billion.
Due to an inability to safeguard revenue during the coronavirus pandemic the ANC administrators have effectively wiped out R2.6 billion off the City’s books.
Moody’s has directly cited the political uncertainty in the City as part of the problem, highlighting how the imposition of the ANC administrators are causing delays in decision making and creating heightened uncertainty about its future revenue.
In their statement, Moody’s reflected positively on the DA’s time in office highlighting that the City had a “track record of sound budget management in recent years” which had led to continuous credit upgrades.
Under the ANC administrators, this progress has not only been undone but there is a steep regression leading to the credit downgrade and the gradual erosion of the City’s cash.
The DA initially raised alarm at the declining revenue collections in the City and the inability of the ANC administrators to ensure that the City’s fiscal position was protected. This was ignored.
The ANC administrators have demonstrated continuous financial mismanagement in the City.
By failing to follow due process in approving the budget, allowing a chaotic billing process and ignoring supply chain processes in procurement, the ANC has slowly led the capital into financial ruin.
Cllr Randall Williams
DA Tshwane Mayoral Candidate