City of Tshwane Finance MMC and Deputy Mayor Eugene Modise has described his second budget since taking office as fully funded and pro-poor.
Image: Oupa Mokoena/Independent Newspapers
City of Tshwane Finance MMC and Deputy Mayor Eugene Modise has hailed his second budget speech since taking office as fully funded and pro-poor.
The presentation of the R58.5 billion budget for the 2026/27 financial year on Thursday at Tshwane House took place amid a protest by Freedom Front Plus and DA councillors, who argued he was unfit to address the council.
The protesting councillors held up placards criticising the state of service delivery in the municipality.
However, Modise slammed the demonstrators, saying his administration is “resilient and we will never be defocused by racists”.
Shortly after Modise took the podium, FF-Plus councillor Mark Surgeon raised concerns about him delivering the budget speech, saying Modise was unfit to address the council.
"The deputy mayor has no integrity, no authority and he is unfit for office,” he said.
Council Speaker Mncedi Ndzwanana told protesting councillors that while they could display placards, they should not disrupt proceedings with noise.
Some ANC councillors called on Ndzwanana to have security remove the protesters if they made noise, but no action was taken.
The FF Plus and DA councillors held up placards inside Tshwane, criticising the state of service delivery in the municipality.
Image: Oupa Mokoena/Independent Newspapers
Addressing the council, Modise said the National Treasury had approved the budget as fully funded, marking the second consecutive year it received that status.
He also said Tshwane is recognised nationwide as a financially stable city, and that the budget aligns with the city’s Integrated Development Plan and is pro-poor.
According to him, the fully funded R58.5bn budget - with R54.5bn allocated to operations and R2.8bn to capital expenditure - represents a calculated and necessary shift toward financial realism.
“The budget is grounded on sound financial governance and has been assessed and approved by the National Treasury as credible and fully funded,” he said.
He said the administration has so far paid at least R2bn to Eskom for its historical debt.
“While Eskom has effected an electricity tariff increase of 9.1%, we as the caring government have capped that and cushioned our residents from this and we are increasing our tariffs by 8,8%, which is lower than the Eskom tariff,” he said.
He praised the city for rebuilding its payment culture through Tshwane Ya Tima, a revenue-collection drive where officials confront customers in arrears and cut off water and electricity.
Through the budget the city has allocated R110 million for reducing water losses, R60 million for electricity distribution losses and R78 million for the prepaid electricity meter programme.
“These interventions are meant to strengthen infrastructure services, reduce non-revenue losses, improve billing accuracy and protect long-term sustainability on municipal services,” Modise said.
To modernise the city’s administrative and governance systems Modise announced the allocation of R439m for fleet management, R335m for IT services, R59m for computer equipment, R60.5m for IT network upgrades, and R27m for cybersecurity improvements.
He said the administration will continue to reduce its reliance on outsourced service providers this financial year and redirect resources toward municipally owned assets and internal operational capacity.
He said the city will redirect R110m to the water tanker contract, R55m to household refuse removal, R224.4m to maintenance contracts, and R104m to watchman services.
He added that the R104m for watchman services had previously been cut from the city’s budget, leaving its assets vulnerable.
Triotic Protection Services, a company linked to Modise, is among security companies currently doing business with the municipality under watchmen services.
Modise, accused of failing to disclose his interest in the company, was recently fined the equivalent of two months’ salary after a guilty finding for financially benefiting from a municipal security contract. He previously said he relinquished the company's directorship.
The DA flagged Modise’s potential profit from Triotic Protection Services in November 2024, prompting an investigation.
Modise said R1,4 billion has been allocated to repairs and maintenance, the first time that amount has been set aside in the city’s history.
He announced a 3.5% salary increase for Tshwane workers, noting that provision had now been made for a raise they were denied for four years.
Modise said the current coalition government found workers frustrated and hurt when it took over after some were dismissed for participating in a violent strike action. He vowed that 43 workers dismissed under the DA-led administration would be reinstated.
Modise’s stance came despite previous criticism from opposition parties that the coalition government’s decision to pay an outstanding 3,5% salary increase might compromise service delivery. This increase stems from the 2021 wage agreement and includes backdated salaries amounting to over R1 billion for at least 21,000 workers.
Modise said the city budget will prioritise service delivery across six areas, which are social services and community well-being, a safe and clean city, infrastructure development and service delivery acceleration, economic revitalisation and investment attraction, and financial stability and revenue enhancement.
Council is expected to hold an ordinary council sitting next week to debate the tabled budget across party lines.
rapula.moatshe@inl.co.za