Treasury turns up the heat on Morero

Johannesburg mayor Dada Morero is under growing pressure to fix the city's finances and stabilise political leadership, as the treasury threatens to freeze critical funding over billions in irregular expenditure.

- Mandisa Nyathi

Finance Minister Enoch Godongwana has given Morero until the middle of the month to account for R24.4 billion in unauthorised, irregular, fruitless and wasteful spending.

A letter dated 30 July accused the City of Johannesburg of taking “little to no action” on financial mismanagement and warned failure to submit a credible recovery plan would result in cuts to national grants.

The city's budget depends heavily on these transfers, which make up roughly R13 billion, or 15% of its total R89 billion budget. These funds are used to support basic services and indigent households. Officials warn that Johannesburg's already limited capacity to deliver services could collapse if the funds are withheld.

Godongwana’s intervention has also reignited concerns about who is really running the city, which critics say is starting to resemble a municipality under soft administration, with key decisions influenced by unelected actors.