Latest news with #EugeneModise
The Citizen
6 hours ago
- Business
- The Citizen
Budget shortfall, not deficit – Modise slams DA claims
Tshwane's MMC for Finance Eugene Modise has reassured residents the city's financial stability and service delivery are top priorities. This assurance comes amid claims made by the DA of a growing budget deficit. Modise hit back at claims that the metro was spending beyond its means, asserting that the finances remained under control and its budget is funded. DA spokesperson for Finance Jacqui Uys expressed concern over what she described as a growing budget deficit under the current ANC/EFF/ActionSA coalition. Uys claimed that the deficit had grown by R859-million since the DA left office in September 2024. 'This, despite claims from Deputy Mayor Eugene Modise that the city's financial woes are over,' Uys said. She explained that in June 2024, the city adopted a funding plan to reduce a R3-billion deficit. 'By September 2024, our plan had boosted collections by R315-million. However, by the end of April 2025, that positive trend had reversed, with the city falling R859-million short of its collection target, a 19% deviation,' she said. Modise, however, clarified that the R859-million figure is not a deficit but rather a shortfall against the revenue collection target set in the city's funding plan. 'As of April 30, the city had collected R33.6-billion, just R859-million short of the R34.5-billion target, a variance of 2.5%,' he explained. He added that the shortfall is being managed through daily cash flow monitoring and is largely the result of customer non-payment. Despite the deviation from the funding plan, Modise emphasised that the city's actual revenue performance against the approved budget stands at nearly 100%, with a minimal variance of R26-million. He further noted that the National Treasury had independently confirmed that Tshwane's 2025/26 budget is funded. Responding to DA concerns over a decline in revenue collection since September 2024, Modise said the city's collection rate averaged 88%, with a current figure of 86% as of April. 'To improve collections, the city is enforcing its credit control and debt collection policies, and has rolled out campaigns such as the Festive Season Bonanza, Black Friday discounts, and the Incentive and Debt Relief Scheme to encourage customers to settle outstanding debts,' said Modise. On the reported R5.7-billion in outstanding debt, he confirmed that recovery efforts are ongoing under the Mayoral Charter on Revenue Enhancement and Financial Recovery, a framework adopted in June 2024 and still being implemented by the current administration. To curb spending and ensure financial stability, Modise said the city had adopted strict cost-containment measures. These include: – Postponing the filling of vacancies until July 1; – Reducing overtime to critical services only and halting Sunday overtime, except for emergencies; – Capping overtime to 40 hours per service; – Tighter management of acting allowances. 'These internal controls were approved during the February 2025 Technical Budget Steering session and are part of our strategy to manage expenditure responsibly,' Modise explained. He concluded by assuring residents and stakeholders that Tshwane remains financially stable and capable of meeting its obligations for the 2025/26 financial year. 'National Treasury has confirmed our budget is funded. We remain committed to improving our financial health and ensuring consistent service delivery,' he said. Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
a day ago
- Business
- IOL News
DA calls for Tshwane Deputy Mayor Modise to explain R12. 5 million unpaid rent
City of Tshwane Deputy Mayor Eugene Modise is facing criticism over allegations that his company owes the North West Housing Corporation R12.5 million in unpaid rent for the Morula Sun property. Image: Supplied/ City of Tshwane The DA in the North West wants City of Tshwane Deputy Mayor Eugene Modise to appear before a provincial legislature portfolio committee to explain a lease agreement linked to his alleged R12.5 million debt in unpaid rent for the Morula Sun property, managed by the North West Housing Corporation (NWHC). The party has asked the portfolio committee on Cooperative Governance, Human Settlements and Traditional Affairs to summon both Modise and the NWHC 'to come and account for this convenient arrangement between an ANC politician and a failing provincial entity, currently governed by a board staffed by a cohort of ANC politicians'. Modise, who is also the ANC chairperson in the Tshwane region, has reportedly denied owing NWHC, saying he won't let political gimmicks damage the relationship between his party and NWHC. He claimed his administration has transformed the entity, curbed criminal activities, and put a stop to vandalism. He highlighted that since the lease agreement his company has expensive crucial renovations and makeovers of the property. He said his company entered into the agreement before he became a councillor and deputy mayor. He declined to disclose further details, citing that the matter is being handled by the board of lawyers, saying it would be "disingenuous and inconsiderate" to comment further. CJ Steyl, DA MPL in the North West Provincial Legislature and spokesperson on Cooperative Governance, Human Settlements and Traditional Affairs, revealed that the outstanding debt owed by Modise to NWHC was exposed through a parliamentary written question posed by DA MPL Johni Steenkamp. The response to Steenkamp's question revealed that Modise's company, Mzanzi Resorts, owes the financially strained NWHC over R12.5 million in rental fees for the Morula Sun property. It was revealed that Modise entered into a lease agreement with NWHC in December 2019 for the Morula Sun property, with a monthly rental fee of R150,000. The contract was for three years but was extended to April 2026, despite millions owed in arrears. According to Steyl, the last payments were received in September 2024. 'It is notable that Tshwane Deputy Mayor Modise indicated on the addendum for the extension of the contract, dismissed the arrears amounts in lieu of repairs he brought, despite the contract stating in the lessee's obligations that Mzanzi resorts would be responsible for the maintenance,' he said. The DA has also referred the matter to Jacqui Uys, the party's Tshwane spokesperson on Finance, to initiate an investigation into Modise within the Metro council. 'The DA will not rest until every cent owed by Tshwane Deputy Mayor Modise is paid in full and that the NWHC accounts for the actions that led to this agreement between the compromised entity and an ANC politician,' Steyl said.
Eyewitness News
30-05-2025
- Business
- Eyewitness News
Tshwane says revenue generated from new cleansing levy will go towards fixing landfill sites
JOHANNESBURG - The Tshwane Municipality said revenue generated from its new tariff, the city cleansing levy, will go towards fixing its dysfunctional landfill sites. On Thursday, the Tshwane council passed its annual budget for the 2025 / 2026 financial year. The budget includes the R194 a month city cleansing levy that will be charged to customers using private waste collection services. The Democratic Alliance (DA) has criticised the new tariff, saying the city is double-charging over-burdened ratepayers since private waste collectors also pay landfill site fees. However, MMC for Finance Eugene Modise said the current administration is trying to fix issues it inherited from previous DA-led coalition governments. 'We as this executive, went to conduct oversight in all our landfill sites and there is none that have got a lifespan of more than three years as we speak. There is a moratorium that says we cannot apply for landfill sites. All of them, the weighbridges are not functional. Who was in power? What did they do? So, we are going to make sure the landfill sites are fully functional and access controlled.'
Eyewitness News
29-05-2025
- Business
- Eyewitness News
Tshwane Municipality council passes 2025/26 budget, new tariffs & rates to kick in from July
JOHANNESBURG - The Tshwane Municipality council has passed its budget for the 2025/26 financial year. This is the first annual budget passed by the African National Congress (ANC)-led multiparty coalition since it was formed last October. The Tshwane council met on Thursday for a vote on the budget. Tshwane Speaker Mncedi Ndzwanana announced the results of the budget vote in council on Thursday. "Honourable councillors, the City of Tshwane 2025/26 budget has now been passed, with 113 councillors in favour." The budget will introduce a new city cleansing levy of R194 a month. The levy is targeted at properties that use private waste collection services. Finance MMC Eugene Modise said that proceeds from the levy would be used to revitalise the capital's deteriorating landfill sites. "All of them, the weighbridges are not functional. Who was in power, what did they do? So, we are going to make sure the landfill sites are fully functional." The new tariffs and rates take effect from 1 July.
Eyewitness News
22-05-2025
- Politics
- Eyewitness News
Tshwane loses 34% of its water, 22% of power supply through illegal connections at hijacked buildings
JOHANNESBURG - Tshwane Deputy Mayor Eugene Modise said that the city lost 34% of its water and 22% of electricity supply through illegal connections at hijacked buildings. Modise spoke during a visit to some of the buildings in Pretoria West on Thursday, where city officials sought to ensure that residents who were instructed to evacuate had done so. Thursday's efforts fell under Operation Reclaim the City, which was introduced in April during the State of the City Address by Tshwane Mayor Nasiphi Moya. The programme was introduced to address among others, by-law violations, regulation compliance and cleaning up the city. Modise said: "In terms of water, its 34%, electcity and the major contributory is those ones that are occupying illegally, so what we were doing today is to assess buildings belonging to the city."
