The only lies are the ANC's
The ANC, in their so-called ‘investigation' into what they allege is the City of Cape Town's fiscal dumping, yet again proves that they either do not understand how City finances work or that they are so focused on political point-scoring that they dare not let the facts get in the way of deceiving the people of this city.
Their statement, released yesterday, demonstrates that they have jumped to conclusions on inadequate information, conflated separate items and misunderstood or ignored the phasing of projects.
On 24 July, in response to the Mayor's announcement of the City's 93% capital budget spend, the ANC claimed that the City of Cape Town was lying about our spend. They undertook to provide the evidence within a week.
Only two weeks later, after Councillor Sotashe, as a member of the Transport Portfolio Committee, received his Portfolio Committee agenda, have they finally tried to substantiate their claim. Councillor Sotashe, it is evident, has tried to use the Progressive Capital Expenditure Report on the agenda to attempt to substantiate his earlier claims of dishonesty.
ANC claim: "The N2 express service to Mitchells Plain tender of R12,7 million was awarded on 24 June 2013. Within five days of awarding the tender, the city claims to have spent R5,4 million of the budgeted R12,7 million".
Fact: The R5,4 million spent on N2 Express during 2012/13 is expenditure incurred on the major bus station at the Civic Centre required for the N2 Express service busses to dock at in town - as anyone can see they are largely completed and only landscaping is outstanding.
ANC claim: "In the report that is going to Transport, Roads and Stormwater, there is an amount of R632 million claimed to be spent on the compensation and scrapping allowance, yet in the same report, the officials have said negotiations have not yet been finalised with the affected parties".
Fact: Compensation negotiations were concluded, with agreements, in early June. This allowed the funding to be expended before the end of the Financial Year. Negotiations that are reported to be continuing relate to 12-year operating agreements - a completely different thing.
ANC claim: "There is also a claim that R1 million was spent on a link in Brackenfell but the comments from the officials are that the project design is in progress".
Fact: This project is actually the "Okavango Road Link - Brackenfell". Payment was for design consultants, property valuers and negotiators, which are also dealt with as part of the capital costs.
ANC claim: "In Transport, Roads and Stormwater, the City claims to have spent R188,3 million on fare collection, yet the officials' comments say that "numerous claims for extensions of time and extra costs leaves this project still being evaluated."
Fact: In terms of fare collection, the electronic fare collection system has been operating since January 2012.
ANC claim: "The City claims to have spent R55,7 million on feeder stations for the IRT in Adderley street , yet they are saying the project is in design phase."
Fact: The Adderley Street station is just one of many items in the contract, as members of the Transport, Roads and Stormwater Portfolio Committee should know. Many other stations on the route are completed. We have not paid for what has not yet been built.
ANC claim: "There are amounts of R471 million and R50 million which officials claim to have spent on the acquisition of busses, yet the City will not take full delivery of these busses by the end of the financial year."
Fact: The buses paid for in 2012/13 are for delivery of the balance of the 9m Optare and the balance of the Volvo buses ordered in the previous financial years, not the new contract.
ANC claim: "In the report for Utility Services as on 5 August 2013, there is a figure of R558 million which was committed for the month of June 2013, but it is without explanation as to whether this committed budget has been spent or not.
Fact: The report clearly indicated Provisional/Unaudited Capital Expenditure with a commitment of R92 million and an actual expenditure of R2,04 billion. There is no R558 million mentioned.
The above points to the fundamental misreading of the City's spend and frankly may explain why, where they govern, many ANC municipalities are entirely financially dysfunctional. This lies in direct contrast to the City of Cape Town that has received its eighth unqualified audit from the Auditor-General. The City remains committed to financial transparency and responsibility.
The ANC has thus not uncovered anything other than their inability to properly evaluate Council documentation. We reject the unfounded ANC allegations outright.
Statement issued by Executive Deputy Mayor of Cape Town and Mayoral Committee Member for Finance, Alderman Ian Neilson, August 8 2013
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