Executive Mayor of Tshwane Mr Solly Msimanga, released the auditor general report on Tuesday 7th February at Centurion.
The auditor general report is an annual financial report that is released on the final week of each January.
In the opinion of the Auditor-General, the financial statements present fairly in all material respects, the financial position of the City of Tshwane Metropolitan Municipality and its financial performance and cash flows.
MMC for finance, Mr Mare-Lise Fourie, said financial sustainability is key for any institution that wants to pursue a developmental agenda and implement change.
He said the report stated that there were significant uncertainties as to the outcome and financial impact with a liabilty of R 226 million and corresponding figures for 30 June 2015 that had to be restated as a result of errors discovered.
The material financial losses sustained as a result of electricity distribution losses represented 19.3%, or R1.347 billion of total electricity purchased.
Non-technical losses amounted to R489 million and R858 million was due to unauthorized consumption, tampering and faulty meters.
In addition Tshwane Metro closed the financial year with a deficit in excess of R2 billion on the operating account – a turnaround of R2.146 billion compared to a budgeted surplus of R2.5 million.
Mayor Msimanga reassured the people of Tshwane of his administration’s resilience to turn the City’s finances around.
“The future of this Metropolitan, pregnant with vitality, is a bright one.
“Notwithstanding the challenges, our aim is to stabilize the city in overseeing the transition with delicate management,” he said.
He said his administration will ensure that the City gets all monies due which can then be ploughed back into providing better services, creating work opportunities and making the City livable.