Joburg Moves to Restore Confidence After Treasury Funding Delay

Speaking during a media briefing, Morero said the city has maintained regular engagement with National Treasury through intergovernmental structures and the Presidential Finance Working Group.

City of Johannesburg Executive Mayor Dada Morero has assured residents that the municipality is actively working with National Treasury to resolve financial concerns after the city's July 2026 equitable share allocation was temporarily withheld. Johannesburg was among 69 municipalities affected by Treasury's decision, which forms part of a broader effort to strengthen financial discipline and address governance and fiscal management issues across local government.

Speaking during a media briefing, Morero said the city has maintained regular engagement with National Treasury through intergovernmental structures and the Presidential Finance Working Group. He revealed that city leaders recently met Finance Minister Enoch Godongwana to agree on a process for addressing outstanding concerns. According to Morero, Johannesburg will fully cooperate with Treasury's requirements and provide all the necessary information to support the review process. The Mayor also welcomed confirmation from National Treasury that the City's 2026/27 budget has been assessed as fully funded, saying this demonstrates that Johannesburg's financial position remains stable even though improvements are still required in several areas.

Financial recovery plan focuses on accountability and cash flow

Morero said the municipality recognises that stronger cash flow management and better revenue collection are essential to securing its long-term financial health. He stressed that accountability and transparency will remain central to the city's recovery efforts.

To strengthen its financial position, the municipality has revised its strategy for reducing unauthorised, irregular, fruitless and wasteful expenditure to align with National Treasury guidelines and the Municipal Finance Management Act. The city also regularised R918.4 million in expenditure following investigations and recommendations from the Municipal Public Accounts Committee. Municipal entities, including the Johannesburg Roads Agency, City Parks and Zoo, the Johannesburg Development Agency and Pikitup, regularised an additional R878.3 million.

The city has also taken a closer look at the sources of new unauthorised expenditure instead of treating it as a single figure. Officials identified City Power's spending on bulk electricity purchases as the largest contributor, with overspending reaching R2.1 billion by the end of the third quarter.

Infrastructure investment and essential services remain priorities

Morero confirmed that Rand Water and Eskom are expected to receive outstanding payments by the middle of July as part of the city's commitment to stabilising relationships with key service providers. The municipality is also prioritising funding for Pikitup to clear payment backlogs and rebuild confidence among contractors and suppliers.

He acknowledged that Johannesburg's billing and revenue collection systems require significant modernisation, saying improved collections and tighter cost controls will allow the city to continue investing in essential services such as water, electricity, waste management and public safety. Free basic services for qualifying low-income households will also remain protected while the municipality strengthens revenue collection from residents who are able to pay.

The Mayor added that Johannesburg will continue borrowing responsibly to finance critical infrastructure projects. These include a multi-year funding facility worth 200 million euros from German development bank KfW to upgrade City Power's electricity infrastructure, alongside approximately R1.75 billion that will be invested in Johannesburg Water's capital projects over the coming years.