Tshwane deputy mayor faces allegations over R21 million unpaid municipal bills

The DA in Tshwane has accused Deputy Mayor Eugene Modise, also the MMC for Finance, of protecting a former Morula Sun property he leases from the North West Housing Corporation (NWHC) from having its power disconnected despite it owing the metro R21.7 million in unpaid bills.

Modise is the face of Tshwane Ya Tima revenue-collection campaign, which aggressively targets customers with outstanding municipal bills, often disconnecting their services.

In recent months, the city has collected revenues from defaulting customers and businesses by disconnecting them from the grid.

DA Tshwane spokesperson on finance, Jacqui Uys, claimed that Mzansi Resorts, formerly Morula Sun, owes the City of Tshwane R21,7m in outstanding rates, taxes, water, and sanitation charges.

“Mzansi Resorts is managed via a lease agreement with the NWHC by Mzansi Exhibitions and Events, a company owned by Tshwane Deputy Executive Mayor Eugene Modise, on the Morula Sun property in Mabopane,” she said.

She said that although the municipal account is in the name of the NWHC, the lease agreement with Mzansi Exhibitions and Events specifies that Mzansi and Gold Rush Pty (Ltd), which leases a portion of the property, are liable for the city’s bill.

Uys said: “In a recent City of Tshwane Finance oversight meeting, the DA raised concerns on the high outstanding municipal debt of the NWHC. This prompted city officials in the meeting to cite the NWHC’s claims that they cannot settle their bills as their lessees do not pay their rent.”

The controversy surrounding Modise’s company comes after the DA in the North West province last week exposed that Modise owes the NWHC more than R12m in unpaid rent for its property. 

Modise has outright denied owing the entity, saying he would not allow political gimmicks to damage the relationship between his party and the NWHC. 

He claimed his administration has revitalised the entity, curbed crime, and halted vandalism.

According to him, since the lease agreement, his company has had expensive, crucial renovations and makeovers of the property.

Uys said that Modise’s unpaid debt to the NWHC is hindering their ability to pay the City of Tshwane, which in turn affects residents, the city’s financial recovery, and service delivery. 

She questioned the disparity in treatment, citing examples of provincial-owned facilities having their electricity cut off for non-payment, while Modise’s Mzansi Resorts seems to be exempt.

Responding to the allegations, Modise hit out at Uys, saying she is “struggling with nostalgia”. 

“Mzansi does not have an account with the city, and she can take it to court and satisfy her deep hatred for African excellence,” he said. 

He suggested that Uys needed basic economics training, implying she has lost touch.

rapula.moatshe@inl.co.za