Inside treasury’s oversight: Godongwana, Joburg mayor in high‑level talks over City’s finances

Johannesburg – Finance Minister Enoch Godongwana has met with Mayor Dada Morero to discuss mounting concerns over the financial position of the City of Johannesburg, amid warnings from the National Treasury about the metro’s fiscal sustainability and compliance with financial legislation.

In a statement issued on Sunday, the Ministry of Finance said the concerns relate to the city’s financial sustainability and its compliance with the Municipal Finance Management Act (MFMA).

“The meeting was part of the natural and regular oversight and engagement activities undertaken by the Minister and the National Treasury,” the ministry said.

The engagement follows the leak of a confidential letter sent by Godongwana to Morero, in which the minister called for urgent discussions over the city’s financial affairs.

[WATCH] City of Johannesburg mayor Dada Morero tells #Newzroom405‘s @KatSekhotho that he had a meeting with Finance Minister Enoch Godongwana to iron out concerns the minister expressed in his letter.
Morero says the minister was excited about the meeting.#Newzroom405 pic.twitter.com/SGarJjwFvk

— Newzroom Afrika (@Newzroom405) May 10, 2026

According to the ministry, the meeting between the minister, the mayor and their respective teams of officials and technical experts on Friday was “robust and productive”.

“The engagements are ongoing and are being treated with the urgency that they merit, and while Minister Godongwana fully accepts the public interest in the matters, it would not be appropriate to detail the full scope of those discussions at this time,” the statement said.

The ministry said National Treasury was acting within its constitutional and statutory mandate to oversee municipal finances and intervene where there are material risks to fiscal sustainability and compliance with public finance legislation.

“In terms of its constitutional and statutory mandate, National Treasury exercises oversight over the financial affairs of municipalities and is obligated to act where it observes material risks to fiscal sustainability and compliance with the legislative framework governing public finances,” the ministry said.

Joburg mayor Dada Morero said Finance Minister Enoch Godongwana’s letter addressing the city’s finances does not refer to the current financial year. Speaking to @HeidiGiokos, he said most of the bills have been settled and they now owe creditors R6.8 billion. #eNCA #DStv403 pic.twitter.com/V5oni6TvxM

— eNCA (@eNCA) May 10, 2026

Godongwana sought to reassure Johannesburg residents that Treasury was working towards a solution that protects service delivery and the city’s long-term financial stability.

Describing the meeting as “productive”, the minister said Morero had agreed to consider “serious remedial actions” to address the issues raised by Treasury.

“They will soon submit a formal report to the Treasury in response to the letter that I sent,” Godongwana said.