The City of Tshwane has refuted allegations that it struggled to meet its monthly payroll obligations, following claims by the Democratic Alliance (DA) that the municipality faced a severe cash-flow shortage on the most recent pay date. DA spokesperson for finance, Jacqui Uys, alleged that internal information suggested the city only possessed sufficient liquidity to process staff salaries by late afternoon, raising concerns over the municipality’s broader fiscal health.
Financial Oversight And Claims Of Instability
The DA’s stance is supported by internal revenue reporting as of 15 June 2026, which indicated that the city was approximately R3 billion below its projected revenue collection targets for the period. While the DA expressed alarm over these figures, the City of Tshwane’s MMC for Finance, Eugene Modise, dismissed the assertion of a payroll crisis entirely.
These claims are false and appear to form part of a desperate attempt to undermine the financial progress achieved by the current multiparty coalition government. At no stage was the city unable, or likely to be unable, to meet its financial obligations.
According to Modise, the city maintained sound financial standing, reporting that R1.8 billion remained in the municipal coffers after all salaries were successfully processed. The Gauteng provincial government also recently intervened to support struggling municipalities in the region, allocating R296 million in June 2026 to assist with financial pressures.
Context Of Ongoing Wage Disputes
The current fiscal tension follows a prolonged legal battle regarding backdated salary increases for municipal workers, which originated from a 3.5% wage hike dispute dating back to July 2021. In February 2026, the city reached a formal settlement with labour unions, committing to a repayment schedule that will see the R1.088 billion debt settled in batches over several years until February 2029.
The municipality continues to manage these repayments while navigating challenges related to infrastructure maintenance and revenue collection shortfalls. Further financial disclosures are expected as the city prepares for its next quarterly budget oversight meeting.