Members of the media,
Fellow members of the Mayoral Committee,
Residents of Tshwane,
Good morning.
Tomorrow, the new multi-party government will mark the midpoint of our first 100 days in office. As we approach this milestone, we would like to provide updates on several key issues that are critical to the recovery and stabilisation of our city.
Our administration is committed to transparency and accountability, and today’s briefing reflects our dedication to keeping residents informed of both the progress we are making and the challenges we continue to face.
Firstly, I would like to provide an update on the Eskom debt.
As residents are aware, when this administration took office, we inherited debt to Eskom in excess of R7 billion, which had grown from approximately R2.9 billion over the previous 18 months. This included over R700 million in interest.
This has placed immense strain on the city’s financial sustainability as we have struggled to meet our current obligations to Eskom while trying to reduce the debt and pay the interest that was accruing.
Today, however, I am pleased to announce that the City of Tshwane has reached a landmark agreement with Eskom to settle this issue.
This agreement, formalised as a court order on 26 November 2024, is a significant milestone in our journey to financial recovery and stability.
Under the arrangement we have agreed with Eskom that the debt of R6.67 billion will be ringfenced and repaid over a five-year period, with the first payment of R400 million scheduled for December 2024 and the last payment in March 2029.
Alongside the ringfencing of the historical debt, Eskom has also agreed to waive interest on this amount as long we maintain the payment of current accounts within 30 days of billing. Thanks to efforts made to improve revenue collection, this is now achievable.
To ensure that we continue to meet the obligations set out in the court order, we will also focus on revenue protection to ensure that residents who are able to pay their accounts are held accountable for non-payment.
This settlement signals a turning point as it allows us to turn our focus towards improving service delivery and enhancing revenue collection systems.
On behalf of the Mayoral Committee, the City, and the residents of Tshwane I would like to thank Eskom as well as the Minister of Energy and Electricity, Dr Kgosientsho Ramokgopa, for the support in reaching an agreement that allowed us to avoid a potentially devastating outcome had we proceeded with litigation.
This agreement is a demonstration of what is possible when the City works together with all spheres of government in the collective interest of residents.
Secondly, I would like to address the issue of the ongoing dispute on the salary increase backlog.
The second court matter the administration inherited is the wage increase backlog, where the City was unable to implement wage increases agreed to under the SALGA Collective Agreement.
I want to stress that the new administration is committed to the employees of our city and will do everything in our power to pay increases in line with our ability to do so.
Over the past couple of weeks, we have attempted to find a mutually acceptable resolution to this issue with representatives of both IMATU and SAMWU. This included a mediation process with the CCMA, where we had hoped to find one another and avoid litigation.
Unfortunately, IMATU decided to withdraw from the CCMA process while SAMWU remained open to discussions. We respect that unions must do what they believe is in the best interests of their members.
Nonetheless, the failure to reach an agreement left us with no option but to continue with proceedings in the Labour Court last week.
On 21 and 22 November 2024, we appeared before the Labour Court to review the decision to reject the City’s applications for exemption from the 3.5% and 5.4% wage increases for the first and third years of the SALGA Collective Agreement.
For the 3.5% wage increase, we are seeking a fresh evaluation by a new Panellist as the application was rejected on procedural grounds without evaluating the merits of the application – effectively, our inability to afford the increases.
For the 5.4% increase, we have asked the Labour Court to overrule the decision to reject our exemption application, considering the available evidence and our financial constraints.
It is regrettable that we were not able to reach an out-of-court settlement with the unions, as the City is not opposed to the increases in principle, but needs to ensure that any increases that are granted are affordable.
We remain open to engaging with unions and other stakeholders to explore sustainable solutions. Our aim is to find a mutually beneficial agreement that allows us to support workers while balancing the need to ensure the financial stability of the city.
Thirdly, I would like to provide an update on the Hammanskraal water project.
Ensuring clean, potable water for the residents of Hammanskraal remains a top priority for this administration. For decades, residents have endured unsafe water conditions, an unacceptable reality that we are determined to change.
On the operational front, progress continues with Module 1 of the Magalies Water Package Plant. This collaborative project being implemented by Magalies Water is a crucial component of our efforts to supply clean water to the region in collaboration with the national Department of Water and Sanitation, and Magalies Water.
Despite some regrettable delays, Module 1 was completed and commissioned on 15 November. Importantly, however, the completion of construction did not mean that the water is safe for consumption yet. There is an ongoing process with Magalies Water to improve water pressure, allowing the City to flush the system of contaminated water.
In this regard, key developments include:
• Installation of valves to separate areas where contaminated water from Temba Plant and Klipdrift Plant were mixing.
• Systematic flushing and scouring of pipelines to improve water quality. Approximately 80% of the area has been flushed, with only Kekane Garden still in progress due to current insufficient water being supplied from Magalies.
• Regular water quality testing to ensure compliance with SANS 241:2015 standards.
Our collaboration with Magalies Water and the Department of Water and Sanitation continues to be instrumental in these efforts, and I want to express my appreciation to them for assisting with this project.
The City is carefully monitoring progress and developments and remains committed to providing updates. We must ensure that this critical project stays on track to deliver clean water for the people of Hammanskraal. We will only formally launch the project once we are satisfied that water is safe to consume.
While we await the completion of this project, I am pleased to announce Council’s decision to write off over R600 million in water-related debt.
This is a big relief to Hammanskraal residents who suffered the financial burden of paying for water they could not safely consume.
I want to thank councillors for supporting this decision in the interest of social justice. We cannot expect the residents of Hammanskraal to pay for water that is unfit for consumption.
Finally, I would like to share some updates on the spaza shop food safety crisis.
In the wake of recent foodborne illness outbreaks linked to unsafe practices in spaza shops that led to the death of 28 children in Gauteng and two in Tshwane, the City intensified its efforts to regulate this sector and protect public health.
In response to calls from the President to take action to address this crisis, and working closely with the provincial government, on 25 November 2024, we made the decision to activate the City’s Disaster Operations Centre (DOC) to coordinate a multi-sectoral response.
The approach to this crisis entails the re-registration of all spaza shops in Tshwane to ensure their compliance with health and safety guidelines, as well as business practices.
Thus far, we have received applications to register over 1,154 spaza shops. Meanwhile, our integrated by-law enforcement teams continue to inspect spaza shops, issuing fines and shutting down non-compliant operations. These efforts highlight our commitment to ensuring that residents have access to safe, healthy food options.
To strengthen these interventions, the City has introduced an online registration portal for spaza shops, streamlining compliance processes and enhancing oversight.
Finally, last week Council approved a draft Informal Trading and Township Economy By-Law for public consultation. This regulation, which aligns with the Standard Draft By-law on Township Economies gazetted by the Minister of COGTA, proposes stricter licensing requirements, enforces health and safety standards, and outlines penalties for non-compliance. It will also allow for the City to set quotas for the ownership of spaza shops by South African citizens.
We encourage all stakeholders to participate actively in the public consultation process for the draft By-law. Your input will help us shape policies that reflect community needs and priorities.
This administration is committed to supporting informal traders while ensuring public health standards are met.
Residents of Tshwane,
As we approach the midpoint of our 100 days in office, I am pleased with the progress we are making but also aware of the work that lies ahead.
From financial recovery to equitable service delivery, this administration is committed to building a Tshwane that works for all its residents.
This is a journey of transformation, and it requires the collective effort of government, businesses, and communities.
Together, we can achieve our vision of a financially stable, well-governed, and inclusive City that serves its residents with dignity and fairness.
Thank you, and I am happy to take your questions.
Tshwane’s path to stability: Executive Mayor provides updates on Eskom debt, wage backlog, Hammanskraal water crisis, and Spaza Shop safety
Members of the media,
Fellow members of the Mayoral Committee,
Residents of Tshwane,
Good morning.
Tomorrow, the new multi-party government will mark the midpoint of our first 100 days in office. As we approach this milestone, we would like to provide updates on several key issues that are critical to the recovery and stabilisation of our city.
Our administration is committed to transparency and accountability, and today’s briefing reflects our dedication to keeping residents informed of both the progress we are making and the challenges we continue to face.
Firstly, I would like to provide an update on the Eskom debt.
As residents are aware, when this administration took office, we inherited debt to Eskom in excess of R7 billion, which had grown from approximately R2.9 billion over the previous 18 months. This included over R700 million in interest.
This has placed immense strain on the city’s financial sustainability as we have struggled to meet our current obligations to Eskom while trying to reduce the debt and pay the interest that was accruing.
Today, however, I am pleased to announce that the City of Tshwane has reached a landmark agreement with Eskom to settle this issue.
This agreement, formalised as a court order on 26 November 2024, is a significant milestone in our journey to financial recovery and stability.
Under the arrangement we have agreed with Eskom that the debt of R6.67 billion will be ringfenced and repaid over a five-year period, with the first payment of R400 million scheduled for December 2024 and the last payment in March 2029.
Alongside the ringfencing of the historical debt, Eskom has also agreed to waive interest on this amount as long we maintain the payment of current accounts within 30 days of billing. Thanks to efforts made to improve revenue collection, this is now achievable.
To ensure that we continue to meet the obligations set out in the court order, we will also focus on revenue protection to ensure that residents who are able to pay their accounts are held accountable for non-payment.
This settlement signals a turning point as it allows us to turn our focus towards improving service delivery and enhancing revenue collection systems.
On behalf of the Mayoral Committee, the City, and the residents of Tshwane I would like to thank Eskom as well as the Minister of Energy and Electricity, Dr Kgosientsho Ramokgopa, for the support in reaching an agreement that allowed us to avoid a potentially devastating outcome had we proceeded with litigation.
This agreement is a demonstration of what is possible when the City works together with all spheres of government in the collective interest of residents.
Secondly, I would like to address the issue of the ongoing dispute on the salary increase backlog.
The second court matter the administration inherited is the wage increase backlog, where the City was unable to implement wage increases agreed to under the SALGA Collective Agreement.
I want to stress that the new administration is committed to the employees of our city and will do everything in our power to pay increases in line with our ability to do so.
Over the past couple of weeks, we have attempted to find a mutually acceptable resolution to this issue with representatives of both IMATU and SAMWU. This included a mediation process with the CCMA, where we had hoped to find one another and avoid litigation.
Unfortunately, IMATU decided to withdraw from the CCMA process while SAMWU remained open to discussions. We respect that unions must do what they believe is in the best interests of their members.
Nonetheless, the failure to reach an agreement left us with no option but to continue with proceedings in the Labour Court last week.
On 21 and 22 November 2024, we appeared before the Labour Court to review the decision to reject the City’s applications for exemption from the 3.5% and 5.4% wage increases for the first and third years of the SALGA Collective Agreement.
For the 3.5% wage increase, we are seeking a fresh evaluation by a new Panellist as the application was rejected on procedural grounds without evaluating the merits of the application – effectively, our inability to afford the increases.
For the 5.4% increase, we have asked the Labour Court to overrule the decision to reject our exemption application, considering the available evidence and our financial constraints.
It is regrettable that we were not able to reach an out-of-court settlement with the unions, as the City is not opposed to the increases in principle, but needs to ensure that any increases that are granted are affordable.
We remain open to engaging with unions and other stakeholders to explore sustainable solutions. Our aim is to find a mutually beneficial agreement that allows us to support workers while balancing the need to ensure the financial stability of the city.
Thirdly, I would like to provide an update on the Hammanskraal water project.
Ensuring clean, potable water for the residents of Hammanskraal remains a top priority for this administration. For decades, residents have endured unsafe water conditions, an unacceptable reality that we are determined to change.
On the operational front, progress continues with Module 1 of the Magalies Water Package Plant. This collaborative project being implemented by Magalies Water is a crucial component of our efforts to supply clean water to the region in collaboration with the national Department of Water and Sanitation, and Magalies Water.
Despite some regrettable delays, Module 1 was completed and commissioned on 15 November. Importantly, however, the completion of construction did not mean that the water is safe for consumption yet. There is an ongoing process with Magalies Water to improve water pressure, allowing the City to flush the system of contaminated water.
In this regard, key developments include:
• Installation of valves to separate areas where contaminated water from Temba Plant and Klipdrift Plant were mixing.
• Systematic flushing and scouring of pipelines to improve water quality. Approximately 80% of the area has been flushed, with only Kekane Garden still in progress due to current insufficient water being supplied from Magalies.
• Regular water quality testing to ensure compliance with SANS 241:2015 standards.
Our collaboration with Magalies Water and the Department of Water and Sanitation continues to be instrumental in these efforts, and I want to express my appreciation to them for assisting with this project.
The City is carefully monitoring progress and developments and remains committed to providing updates. We must ensure that this critical project stays on track to deliver clean water for the people of Hammanskraal. We will only formally launch the project once we are satisfied that water is safe to consume.
While we await the completion of this project, I am pleased to announce Council’s decision to write off over R600 million in water-related debt.
This is a big relief to Hammanskraal residents who suffered the financial burden of paying for water they could not safely consume.
I want to thank councillors for supporting this decision in the interest of social justice. We cannot expect the residents of Hammanskraal to pay for water that is unfit for consumption.
Finally, I would like to share some updates on the spaza shop food safety crisis.
In the wake of recent foodborne illness outbreaks linked to unsafe practices in spaza shops that led to the death of 28 children in Gauteng and two in Tshwane, the City intensified its efforts to regulate this sector and protect public health.
In response to calls from the President to take action to address this crisis, and working closely with the provincial government, on 25 November 2024, we made the decision to activate the City’s Disaster Operations Centre (DOC) to coordinate a multi-sectoral response.
The approach to this crisis entails the re-registration of all spaza shops in Tshwane to ensure their compliance with health and safety guidelines, as well as business practices.
Thus far, we have received applications to register over 1,154 spaza shops. Meanwhile, our integrated by-law enforcement teams continue to inspect spaza shops, issuing fines and shutting down non-compliant operations. These efforts highlight our commitment to ensuring that residents have access to safe, healthy food options.
To strengthen these interventions, the City has introduced an online registration portal for spaza shops, streamlining compliance processes and enhancing oversight.
Finally, last week Council approved a draft Informal Trading and Township Economy By-Law for public consultation. This regulation, which aligns with the Standard Draft By-law on Township Economies gazetted by the Minister of COGTA, proposes stricter licensing requirements, enforces health and safety standards, and outlines penalties for non-compliance. It will also allow for the City to set quotas for the ownership of spaza shops by South African citizens.
We encourage all stakeholders to participate actively in the public consultation process for the draft By-law. Your input will help us shape policies that reflect community needs and priorities.
This administration is committed to supporting informal traders while ensuring public health standards are met.
Residents of Tshwane,
As we approach the midpoint of our 100 days in office, I am pleased with the progress we are making but also aware of the work that lies ahead.
From financial recovery to equitable service delivery, this administration is committed to building a Tshwane that works for all its residents.
This is a journey of transformation, and it requires the collective effort of government, businesses, and communities.
Together, we can achieve our vision of a financially stable, well-governed, and inclusive City that serves its residents with dignity and fairness.
Thank you, and I am happy to take your questions.