South Africa: Godongwana Gives Joburg Mayor 14 Days to Fix Financial Crisis

4 August 2025
Scrolla (Johannesburg)
By Dylan Bettencourt
  • Johannesburg's finances are in crisis, with over R24-billion in irregular, wasteful and unauthorised spending reported.
  • If the mayor fails to act in 14 days, the Treasury may cut funding, which could collapse basic service delivery in the city.

Finance Minister Enoch Godongwana has given Johannesburg mayor Dada Morero a firm deadline: fix the city's financial mess in 14 days or risk having Treasury funding cut off.

In a strongly worded letter dated 30 July, Godongwana criticised Morero for failing to follow the law and for allowing billions to be wasted through mismanagement.

The letter revealed the figures. In financial 2024 alone, the Johannesburg metro blew R1.4-billion on unauthorised expenses, R22-billion on irregular spending, and R705-million on fruitless and wasteful costs, Sunday Times reported.

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Godongwana said the city had done little to fix the problem and warned that if the mayor does not act, the National Treasury will stop transferring money to the municipality.

That would devastate service delivery. The city relies heavily on grants and conditional funding, which can only be spent on specific services.

"Failure to address these expenditures will prompt the National Treasury to invoke section 216(2) of the Constitution," Godongwana said. That section allows the Treasury to cut funds if municipalities break financial laws.

The city's troubles go deeper. A recent report by the Auditor-General found eight serious issues in Johannesburg's finances, and said city staff were failing to manage basic services.

President Cyril Ramaphosa raised concerns during a visit in March, saying he was "not very pleased" with what he saw in the city set to host the G20 summit in November.

The Democratic Alliance's Belinda Kayser-Echeozonjoku said the party had warned the national government and Morero for months, and welcomed the Treasury's move.

Meanwhile, the city's top finance post remains empty. The previous MMC, Margaret Arnolds, was elected council speaker in July.

Morero is now running the city's finances from his office, but faces political pressure over who should take over the powerful portfolio.

Some coalition partners want Thapelo Amad in the job, as part of a power-sharing deal. Others in the African National Congress want Loyiso Masuku. But Morero reportedly sees Masuku as a rival ahead of the ANC's regional conference.

Amad resigned as mayor in 2023 just before a no-confidence vote. The DA said the ANC-led coalition that backed him had sabotaged service delivery and protected officials accused of corruption.

Meanwhile, Patriotic Alliance leader Kenny Kunene recently stepped down as transport MMC after being found at the home of a man accused of murder.

Read the original article on Scrolla.

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