Joburg’s billions wasted — treasury sounds the alarm

Godongwana

Cape Town – The City of Johannesburg is on the brink of financial collapse following a damning letter from Finance Minister Enoch Godongwana to Executive Mayor Dada Morero, warning of the possible suspension of grant funding due to ballooning irregular expenditure amounting to R22.2 billion.

Democratic Alliance (DA) Johannesburg Caucus Leader, Councillor Belinda Kayser-Echeozonjoku, revealed over the weekend that the National Treasury had issued the strongest warning yet to the ANC-led city administration. The minister accused the City of failing to prevent, investigate or recover unauthorised, irregular, fruitless, and wasteful expenditure (UIFWE), raising alarm over the City’s fiscal management.

In the letter, Godongwana cautions that if the City does not urgently address the financial mismanagement, the National Treasury may invoke Section 216(2) of the Constitution, which allows for the withholding of funds from municipalities that fail to meet financial governance requirements. Such action could severely undermine Johannesburg’s ability to deliver even basic services.

“The Minister’s letter is no empty threat,” said Kayser-Echeozonjoku.

“If Treasury pulls back or suspends these funds, the City’s ability to deliver the little basic services it is currently able to deliver, will collapse entirely.”

According to the DA, fruitless and wasteful expenditure in Johannesburg now exceeds R705 million, with irregular expenditure reaching crisis levels. The opposition party blames the ANC for the city’s deteriorating financial position, accusing Mayor Morero of failing to implement accountability measures or heed previous warnings.

Kayser-Echeozonjoku pointed to costly legal losses — such as the now-scrapped VIP Protection policy — as examples of wasteful spending, adding that the City had failed to disclose the total cost of ongoing legal defeats to Council.

The DA claims it repeatedly raised red flags with both the City and National Treasury, warning that top officials in key departments were not fulfilling their responsibilities and that there was a “total lack of consequence management.”

“This is the gravest financial threat in Johannesburg’s democratic history,” Kayser-Echeozonjoku said. “The ANC has proven, time and again, that it cannot govern Johannesburg responsibly.”

The ANC had not yet responded to the allegations at the time of publication.

The DA says it will continue to push for transparency and financial discipline and argues that only a change in government can restore Johannesburg’s stability.

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