Tshwane’s R12,2 Billion Asset Crisis

The latest official report by Tshwane’s Strategic Asset Management Committee (SAMCO) reveals that an amount of R12,2 billion is trapped in projects that have already been completed, are partially completed, or for which plans and payments were made long ago, but that were never officially loaded onto the Metro’s asset register.

These funds – which represent infrastructure desperately needed by communities – are trapped due to administrative negligence and incompetence.

While residents must contend with crumbling roads, dark streets and stalled housing projects on a daily basis, completed or partially completed projects are not legally transferred.

And because these assets do not appear on the active asset register, the Metro may not maintain or insure them.

Consequently, properties are neglected, damage occurs and projects have to be redone at higher cost at a later stage.

This basically means that taxpayers pay twice: first for the initial construction and then again for the repair of damage that occurred in the interim.

This is a direct consequence of poor to no project management and a culture of indiscipline, which are undermining the Metro’s financial health and service delivery.

This asset crisis amounts to a betrayal of taxpayers, because it affects precisely those sectors and communities that bear the brunt of collapsing service delivery. The trapped R12,2 billion could have made a tangible difference to residents’ daily lives.

An independent forensic audit should urgently be conducted to determine who is responsible for these delays and to ensure that projects do not remain stalled.

In addition, the Metro’s project management model should be reviewed to prevent tax money from being squandered like this in the future.

Residents should register and vote for the Freedom Front Plus on 4 November to bring about tangible improvement in their daily lives.