Treasury threatens to stop funding Joburg municipality if it doesn’t get its finances in order

JOHANNESBURG - National Treasury has threatened to stop grant funding to the Johannesburg municipality if it doesn’t get its finances in order.

Finance Minister Enoch Godongwana has written to the Joburg Mayor Dada Morero, saying he needs to do more to curb the city’s wasteful, irregular and unauthorised expenditure.

The letter, dated the 30th of July, has sounded alarm bells among the opposition in the city.

Like most municipalities, the City of Johannesburg receives grant funding from the National Treasury.

This funding goes towards capital projects like roads, water and electricity infrastructure.

Finance Minister Enoch Godongwana said he’s unhappy how some of these funds are being spent by the city.

The Minister highlights the fact that in the 2023/24 financial year, the city racked up over 22 billion in unauthorised, irregular, fruitless and wasteful expenditure.

Democratic Alliance (DA) Johannesburg caucus leader Belinda Kayser-Echeozonjoku said the city cannot afford to lose any funding.

“Funding that keeps our Johannesburg’s finances and services running. Without it, our R89billion budget will collapse and residents will pay the ultimate price.”

The DA said Mayor Dada Morero is not the right man to lead Johannesburg.