South Africa: Finance Minister Warns Joburg Is in 'Severe Financial Distress' in Letter to Mayor Morero

Ihsaan Haffejee/GroundUp
The iconic Brixton Tower in Johannesburg (file photo).
6 May 2026
Daily Maverick (Johannesburg)
By Ferial Haffajee

Enoch Godongwana has ordered Joburg's mayor to stop the implementation of a budget-busting wage deal and warns it could affect the national economy.

In a second letter in less than a year, Finance Minister Enoch Godongwana has warned Johannesburg mayor Dada Morero that the City's budget is unfunded and that it is in severe financial distress. He has also instructed the mayor to explain how he intends to fund a massive wage deal with the City's workers and ordered implementation to stop.

Godongwana's letter reveals that creditors are owed R25.2-billion, up from R17-billion at the end of the 2022/23 financial year.

"The City's cash and cash equivalent of R3.9-billion in 2024/25 is insufficient to repay creditors R25.2-billion," said Godongwana in the letter dated 24 April 2026.

"This is a marker of severe financial distress, indicating that the City does not have the liquidity required to pay its creditors," wrote Godongwana.

The finance minister said the City's wage agreement with the SA Municipal Workers Union (Samwu), committing to R10.3-billion over two years to end a wage dispute, was unfunded. Morero signed the agreement with Samwu to prevent strikes before the G20 summit. The DA has taken the wage deal to court.

Samwu had not immediately responded to requests for comment on Wednesday.

Godongwana has asked Morero...

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