Businesses continue to struggle to operate during load-shedding, yet GPG fails to spend the diesel budget

8 June 2023

Gauteng businesses are struggling to stay afloat due to the ongoing load-shedding, yet the Gauteng Provincial Government (GPG) is failing to spend the budget allocated to buy diesel for the generators.

According to the GPG state of finances fourth quarter report, only 4% of the budget for diesel for the Tshwane Special Economic Zone (TSEZ) has been spent. Currently, there is still a balance of R38 374 000,00. This money is for diesel to help mitigate the impact load-shedding has on them.

The MEC for Economic Development, Tasneem Motara, indicated that it would cost R1,7 million for 61 000 litres a day to continue trading during load-shedding at the TSEZ.

According to MEC Motara, a study was conducted by the Tshwane Special Economic Zone to determine what the cost implications are for businesses operating in the hub. The study revealed that the cost is too much for the government.

Thereafter, a decision was taken that the businesses will pay for the running costs of the generator while the Tshwane Special Economic Zone will be assisting in procuring the diesel.

The DA will be tabling follow-up questions to the MEC for Economic Development to determine what monetary contribution the provincial government will be contributing to procure diesel and what will happen to the money that was not spent on procuring diesel during the 2022/2023 financial year.

Issued by Adriana Randall, DA Gauteng Shadow MEC for Finance, 8 June 2023