The City of Johannesburg has less than two weeks to respond to the National Treasury’s stern warnings over its deteriorating financial health. Finance Minister Enoch Godongwana has reportedly written to Mayor Dada Morero, demanding immediate action to curb wasteful expenditure and hold officials accountable for violations of the Municipal Finance Management Act (MFMA).
According to the Sunday Times, failure to address these concerns could result in the withholding of critical grant funding, further straining the city’s already struggling service delivery.
A City in Financial Disarray
The National Treasury’s intervention comes amid growing frustration over Johannesburg’s financial mismanagement. Critics argue that despite high budgets—reportedly around R90 billion—the city relies on outdated systems, such as Excel spreadsheets, for financial planning.
Councillors and analysts have described the city’s governance as “dysfunctional,” with key financial reports delayed and oversight mechanisms failing. A commentator on municipal affairs, highlighted that crucial financial reports for January and February were only presented to council in August, raising concerns about transparency.
Service Delivery Failures Persist
Residents continue to grapple with crumbling infrastructure, including malfunctioning traffic lights (“robots”) and unreliable utilities. Despite initiatives like the Louis Botha Rea Vaya bus system, allegations of irregular procurement processes and wasteful spending persist.
She pointed to unauthorized, irregular, and fruitless expenditure (UIFW) as a major issue, citing cases where contracts were signed improperly, payments made prematurely, and no accountability enforced. “Officials who mismanage funds are simply shuffled around instead of facing consequences,” she said.
Political Wrangling and Lack of Accountability
Council meetings have been criticized as ineffective, with decisions allegedly driven by party mandates rather than rigorous debate. “Councillors are told how to vote, not how to scrutinize,” she noted, emphasizing that financial mismanagement is being overlooked.
Gauteng Premier Panyaza Lesufi has expressed optimism about a possible resolution, but residents remain skeptical. With just 13 days left for the city to submit its corrective plan, pressure is mounting on Mayor Morero to demonstrate tangible reforms.
What’s Next?
If Johannesburg fails to present a credible plan, the National Treasury could take drastic measures, including freezing grants—a move that would deepen the city’s service delivery crisis. For now, all eyes are on City Hall as the countdown begins.
