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Availability of the Annual Financial Statements for the year ended 30 June 2020 - CTMM
THE CITY OF TSHWANE METROPOLITAN MUNICIPALITY
(A municipality as described in section 2 of the Local Government Municipal Systems Act, 2000, duly
established in terms of Notice No. 6770, promulgated in the Provincial Gazette Extraordinary of 1 October
2000 in terms of section 12(1) read with section 14(2) of the Local Government : Municipal Structures Act,
1998, as amended)
(Issuer code: CTMM)
(“City of Tshwane” or the “Issuer”)
AVAILABILITY OF THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
Further to the announcement released on the 30th of April 2021, noteholders are advised that City of
Tshwane financials are now available at the following link:
Annual Financial Statements
http://www.tshwane.gov.za/sites/Departments/Financial-Services/Financial-
Documents/Approved%20201516/05%20May%202021%20AUDITED%20CONSOL%202020%20-
%20Financial%20Statements%20-%20GRAP%2011.30.pdf
and
Audit Report
http://www.tshwane.gov.za/sites/Departments/Financial-Services/Financial-
Documents/Approved%20201516/City%20of%20Tshwane%20Final%20Audit%20Report%20%2030
%20June%202020_Consol.pdf
The annual financial statements (“AFS”) of the issuer have been audited by the Auditor General, who has
issued an unqualified audit opinion.
The audit report draws attention to the matters below. The opinion was not modified in respect of these
matters.
Disclosure on the impact of Covid-19
7. I draw attention to note 82 in the consolidated and separate financial statements, which
deals with the impact of Covid-19 on the municipality's current and future performance.
Restatement of corresponding figures
8. As disclosed in note 63 to the consolidated and separate financial statements, the
corresponding figures for 30 June 2019 were restated as a result of errors discovered in
the consolidated and separate financial statements of the municipality at, and for the
year ended, 30 June 2020.
Material uncertainties
9. With reference to note 59 to the consolidated and separate financial statements, the
group is the defendant in various lawsuits. The outcome of these matters could not be
determined and/or reliably measured, therefore no provision for any liabilities that may
result was made in the consolidated and separate financial statements.
Material impairments
11.As disclosed in note 4 to the consolidated and separate financial statements, the
consumer debtors' balance has been significantly impaired. The allowance for
impairment of consumer debtors' amounts to R10,90 billion (2018-19: R7,78 billion),
which represents 64% (2018-19: 62%) of total consumer debtors. The contribution to
the provision for debt impairment, as disclosed in note 4 to the consolidated and
separate financial statements, was R3,67 billion (2018-19: R2,15 billion).
Material losses - electricity losses
12. As disclosed in note 69 to the financial statements, material electricity losses of R1,95billion
(2018-19: R1,66 billion) was incurred, which represents 22,3% (2018-19: 18,2%) of
total electricity purchased. Technical losses amounted to R611,75 million (2018-19:
R557,88 million) and was due to the electricity that was lost when it was distributed from
the source of generation through the transmission and distribution network to the
consumers. Non-technical losses amounted to R1,11 billion (2018-19: R898,98 million) and
were due to administrative and technical errors, high estimates, negligence, theft of
electricity, tampering with meters and connections which form part of illegal consumption.
Material losses - water losses
13. As disclosed in note 68 to the financial statements, material water losses of R988,88 million
(2018-19: R1,05 billion) was incurred, which represents 30,2% (2018-19: 29,8%) of total
water purchased. Technical losses amounted to R 791,10 million (2018-19: R841,14
million) and these were due to physical loss of water through the water distribution
network. Non-technical losses amounted to R 197,78 million (2018-19: R210,29 million)
and were due to meter inaccuracies, meter estimations, non-metering of water and
unauthorised consumption
The complete audit report forms part of the annual financial statements and may be viewed at the link
above.
Johannesburg
13 May 2021
Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank division)
4
Date: 13-05-2021 08:00:00
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