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Pretoria - On May 19 this year the Tshwane Metro Council will geographically be the world’s third-biggest metropolitan authority. Only New York and Tokyo will be bigger.
This is the result of the municipal demarcation board’s decision to include the Metsweding district municipality and the Kungwini (Bronkhorstspruit) and Nokeng tsa Taemane (Cullinan and Rayton) local municipalities in Tshwane’s fold.
During the administration of the former mayor, Dr Gwen Ramakgopa, Tshwane came into disrepute when the council was unable to pay its own water and lights account.
What is more, President Jacob Zuma asked the Special Investigations Unit to investigate allegations of serious corruption within the council – and this investigation is expected to take at least another 18 months.
Nokeng itself is under administration and Kungwini’s financial affairs are so abysmal that, in breach of Treasury regulations, it has budgeted for a deficit.
Kgosientso Ramakgopa (36), Dr Gwen’s nephew and successor, is nevertheless confident that the new Tshwane will be the country’s best-managed municipality within five years.
The merger brings with it various opportunities, says Ramakgopa.
Metsweding has a great deal of underdeveloped land that offers an opportunity for new development around corridors like the N4 highway to Mpumalanga.
Additions like the Dinokeng conservation area and the Cullinan Mine could also present Tshwane’s revenue stream with more diversity.
Ramakgopa, who was formerly highly successful as chief executive of the Johannesburg Fresh Produce Market, also sees an opportunity for growing vegetables and fruit in tunnels in the rural parts of the new Tshwane. Not only opportunities for growing them, he said, but also for the whole value chain – packing and logistics.
However, the merger brings its own challenges.
Kungwini and Nokeng currently collect only 35% and 45% of their consumer debts, compared with Tshwane’s 108% collection rate.
In addition to its existing 32 squatter camps, Tshwane will get another 27 following the merger.
Ramakgopa said the establishment of a single new organisational culture offered its own challenge, as well as the fact that officials of the other three municipalities will now have to be paid on Tshwane’s higher salary scales.
Finality on a restructuring allowance to help with phasing in these additional expenses is expected within the next month or two.
Ramakgopa reckons the key to success is to manage Greater Tshwane like a business.
In the business world, he said, success is measured by money on the table, dividends and return on investment.
In municipal management one provides social services, but the underlying principle is the same. Success is measured by the ability to get more value for the same amount of money – such as whether you can construct two kilometres of road from R5m, instead of one.
Don’t antagonise people with money is the other guiding business principle in Tshwane, said Ramakgopa.
The prevailing attitude must change to one of dedication. There will be blood on the floors. Management will have to take unpopular decisions, but it has to ask itself whether it would not be better to pay someone not complying with requirements out for the balance of his contract and get staff that can make a success of the city.
Next year Tshwane plans to issue R1.5bn worth of bonds for capital projects to unlock economic growth. Within five years the council will seek a total R10bn on the capital market.
Although the ANC does not disclose the names of its mayoral candidates ahead of time, Ramakgopa is first in line on the party’s list for the coming municipal election. He also chairs the ANC’s Tshwane region and as such will be in a good position to put his words into action after May 19.
This is the result of the municipal demarcation board’s decision to include the Metsweding district municipality and the Kungwini (Bronkhorstspruit) and Nokeng tsa Taemane (Cullinan and Rayton) local municipalities in Tshwane’s fold.
During the administration of the former mayor, Dr Gwen Ramakgopa, Tshwane came into disrepute when the council was unable to pay its own water and lights account.
What is more, President Jacob Zuma asked the Special Investigations Unit to investigate allegations of serious corruption within the council – and this investigation is expected to take at least another 18 months.
Nokeng itself is under administration and Kungwini’s financial affairs are so abysmal that, in breach of Treasury regulations, it has budgeted for a deficit.
Kgosientso Ramakgopa (36), Dr Gwen’s nephew and successor, is nevertheless confident that the new Tshwane will be the country’s best-managed municipality within five years.
The merger brings with it various opportunities, says Ramakgopa.
Metsweding has a great deal of underdeveloped land that offers an opportunity for new development around corridors like the N4 highway to Mpumalanga.
Additions like the Dinokeng conservation area and the Cullinan Mine could also present Tshwane’s revenue stream with more diversity.
Ramakgopa, who was formerly highly successful as chief executive of the Johannesburg Fresh Produce Market, also sees an opportunity for growing vegetables and fruit in tunnels in the rural parts of the new Tshwane. Not only opportunities for growing them, he said, but also for the whole value chain – packing and logistics.
However, the merger brings its own challenges.
Kungwini and Nokeng currently collect only 35% and 45% of their consumer debts, compared with Tshwane’s 108% collection rate.
In addition to its existing 32 squatter camps, Tshwane will get another 27 following the merger.
Ramakgopa said the establishment of a single new organisational culture offered its own challenge, as well as the fact that officials of the other three municipalities will now have to be paid on Tshwane’s higher salary scales.
Finality on a restructuring allowance to help with phasing in these additional expenses is expected within the next month or two.
Ramakgopa reckons the key to success is to manage Greater Tshwane like a business.
In the business world, he said, success is measured by money on the table, dividends and return on investment.
In municipal management one provides social services, but the underlying principle is the same. Success is measured by the ability to get more value for the same amount of money – such as whether you can construct two kilometres of road from R5m, instead of one.
Don’t antagonise people with money is the other guiding business principle in Tshwane, said Ramakgopa.
The prevailing attitude must change to one of dedication. There will be blood on the floors. Management will have to take unpopular decisions, but it has to ask itself whether it would not be better to pay someone not complying with requirements out for the balance of his contract and get staff that can make a success of the city.
Next year Tshwane plans to issue R1.5bn worth of bonds for capital projects to unlock economic growth. Within five years the council will seek a total R10bn on the capital market.
Although the ANC does not disclose the names of its mayoral candidates ahead of time, Ramakgopa is first in line on the party’s list for the coming municipal election. He also chairs the ANC’s Tshwane region and as such will be in a good position to put his words into action after May 19.
