[South Africa] Tshwane budget now ‘funded’ but R2bn staff cost requirement gap remains

In South Africa, the City of Tshwane has confirmed that its 2025/26 budget, which came into effect on July 1, is fully funded, despite internal concerns about a possible R1.977 billion shortfall in staff costs, Moneyweb reports.

It says it has begun a detailed reconciliation to determine actual staff costs and that work is underway “to unpack the R15.8 billion personnel cost planning figure using the July 2026 payroll as the baseline”.

The city reportedly responded to concerns raised by its acting group head for human capital management, Ronald Oppelt, in a letter to the then acting chief financial officer, dated June 18. The letter, seen by Moneyweb, was sent following the council’s budget approval, and before it was implemented. 

“This process will provide a more accurate assessment of the actual personnel cost position and the underlying variances,” it said.

Mr Oppelt stated that the personnel cost planning submitted to the budget office during the budgeting process amounts to R15.8 billion, yet the budget reflects an allocation of only R13.8 billion. 

The City of Tshwane has reportedly confirmed that these numbers are correct.

Mr Oppelt cautioned that “there is a significant risk that departments will be unable to fund their existing staffing establishments and approved workforce plans during the 2026/27 financial year”.

Source: Moneyweb

(Quotes via original reporting) 

In South Africa, the City of Tshwane has confirmed that its 2025/26 budget, which came into effect on July 1, is fully funded, despite internal concerns about a possible R1.977 billion shortfall in staff costs, Moneyweb reports.

It says it has begun a detailed reconciliation to determine actual staff costs and that work is underway “to unpack the R15.8 billion personnel cost planning figure using the July 2026 payroll as the baseline”.

The city reportedly responded to concerns raised by its acting group head for human capital management, Ronald Oppelt, in a letter to the then acting chief financial officer, dated June 18. The letter, seen by Moneyweb, was sent following the council’s budget approval, and before it was implemented. 

“This process will provide a more accurate assessment of the actual personnel cost position and the underlying variances,” it said.

Mr Oppelt stated that the personnel cost planning submitted to the budget office during the budgeting process amounts to R15.8 billion, yet the budget reflects an allocation of only R13.8 billion. 

The City of Tshwane has reportedly confirmed that these numbers are correct.

Mr Oppelt cautioned that “there is a significant risk that departments will be unable to fund their existing staffing establishments and approved workforce plans during the 2026/27 financial year”.

Source: Moneyweb

(Quotes via original reporting)