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City of Johannesburg, Gauteng Province.
The financial challenges facing the City of Johannesburg have intensified following a strongly worded letter from Finance Minister Enoch Godongwana to Executive Mayor Dada Morero.
The letter raises concerns about what has been described as an unfunded or “fictional” budget, a reported R25 billion debt burden, liquidity pressures and allegations of unlawful financial commitments.
At the centre of the concerns are possible breaches of the Municipal Finance Management Act, which governs financial management and service delivery within municipalities.
National Treasury says the city owes creditors R25 billion while having only R3.9 billion in available cash.
Calls for Joburg to be placed under administration
The minister has also instructed the city to halt its recent agreement with the South African Municipal Workers’ Union (SAMWU), warning that the arrangement could create broader economic risks.
Political party Rise Mzansi says the developments confirm concerns long raised by residents about governance and financial management in the metro.
Rise Mzansi Chief Organiser Makashule Gana says the allegations point to deepening governance failures within the city.
Meanwhile, Mayor Morero says the city remains operational and committed to transparency as discussions continue with National Treasury.
Morero is expected to meet Godongwana to discuss the financial concerns and possible interventions.
