Treasury clears City of Tshwane over bond allegations

Pretoria - The City of Tshwane did not breach the Municipal Finance Management Act (MFMA) in the issuance of its inaugural R1.5 billion bond, National Treasury said on Friday.

In a statement, National Treasury said it had noted media reports alleging that the City of Tshwane breached sections of the MFMA when it sought to issue a bond in June 2012. 

Treasury's monitoring of and oversight over the financial affairs of municipalities, especially those relating to long-term borrowing, are governed by the MFMA. 

According to National Treasury, the City of Tshwane did consult on its plans to raise long-term debt, including inviting comments from National Treasury and the Gauteng provincial treasury. 

However, the decision making and accountability for the bond issue is the responsibility of the municipal council.

"National Treasury can confirm though that with respect to the proposed bond issue, the City of Tshwane Metropolitan Municipality acted within the legislative framework and did not breach Sections 45 and 46 of the MFMA," read the statement. - SANews.gov.za