City of Johannesburg (CoJ) Mayor Dada Morero has assured city residents that the municipality is working with National Treasury to resolve its challenges.
This after the municipality, along with 68 others, had their July 2026 equitable share transfers withheld by National Treasury in a move to instil strict fiscal discipline and root out financial misconduct.
“Not only have we been working through the [Treasury] Intergovernmental Relations structure, but we have been working through the Presidential Finance Working Group led by the President and the Executive Mayor.
“A few weeks ago, we met with the Minister of Finance and mapped out a process for managing issues of concern,” Morero said at a media briefing on Wednesday.
He said the city notes Treasury’s decision to withhold the July 2026 equitable share, adding that the city will “fully comply with the process and provide the necessary clarity”.
“Our working relationship with National Treasury is yielding results. As we speak, we have received correspondence from National Treasury that confirmed that the City’s 2026/27 Annual Budget is funded.
“This is comforting feedback as it confirms that our financial management is okay and has not reached a crisis state. However, more needs to be done to manage our cash flow and revenue performance. Accountability and transparency sit at the centre of this recovery,” Morero stated.
To address this, the Mayor announced the following:
• Randwater and Eskom will receive their funds by mid-July.
• CoJ’s existing Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE) reduction strategy was revised to align with National Treasury’s guidance and MFMA Circular 111 and 68.
• R918.4 million in expenditure was regularised on the recommendation of our Municipal Public Accounts Committee following a formal investigation. In parallel, the boards of the Johannesburg Roads Agency, City Parks and Zoo, the Johannesburg Development Agency, and Pikitup regularised a further R878.3 million among themselves
• CoJ has identified the actual drivers of new expenditure rather than treating UIFWE as a single indistinct number. The largest driver this year is City Power’s overspending on bulk electricity purchases, amounting to R2.1 billion by the end of the third quarter.
• The Mayoral Committee recently considered a full report on Pikitup’s cash flow position and has resolved to act. An initial operational allocation is being prioritised to settle the payment backlog with service providers and restore supplier confidence.
• CoJ’s billing and revenue systems still need modernisation.
“[This] means service delivery remains our priority, with funds recovered through improved collections and cost containment directed toward protecting water, electricity, waste, and public safety services.
“It means we are protecting the free basic services on which indigent households depend, while ensuring that those who can pay do pay.
“And it means we are borrowing responsibly and strategically to fund infrastructure renewal, including a multi-year facility of 200 million Euros [approximately R3.8 billion], secured from the German Development Bank, KfW, for City Power electrical infrastructure, and approximately R1.75 billion for Johannesburg Water capital expenditure over the coming years,” Morero explained. – SAnews.gov.za
