FACT CHECK: The long-running DA-ANC spat over City of Tshwane finances

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FACT CHECK: The long-running DA-ANC spat over City of Tshwane finances
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Africa Check looks at the claim by DA leader Mmusi Maimane that in Tshwane, the DA inherited a deficit of over R1 billion from the ANC and turned it into a surplus in a year.

In February 2019, South Africa’s political parties responded in parliament to President Cyril Ramaphosa’s State of the Nation Address, in what is known as the Sona debate.

The DA was elected to govern Tshwane in August 2016. That month it took over the running of the municipality from the African National Congress, South Africa’s ruling party. A deficit occurs when any government spends more money than it collects, according to a guide to South African government budgets. Money is spent mainly on salaries and services like water and electricity. Money is collected from residents paying for services, rates, licences and fines, as well as from interest and investments.The formula “total revenue minus total spending” calculates whether there is a deficit or a surplus.

But the city’s audited annual financial statements give a restated surplus of R1.1 billion. This figure includes corrections of accounting errors identified later. In 2016/17, the city collected 80% of its income from residents and received 20% in grants from the treasury.

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