STATE OF FINANCES OF THE CITY OF JOHANNESBURG

STATE OF FINANCES OF THE CITY OF JOHANNESBURG 

BY : CHANON LECODEY MERRICKS ONLINE EDITOR KASiBC_AFRiCA

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MEC DUNGA ON THE STATE OF FINANCES OF THE CITY OF JOHANNESBURG 

The MEC of Finance, Nkululeko Dunga, is aware of the correspondence between the Minister of Finance, Enoch Godongwana, and the Executive Mayor of the City of Johannesburg, Cllr Dada Morero, regarding the intention to stop the equitable share to the municipality due to several transgressions of budget laws and associated regulatory instruments.  

The MEC has been briefed by the Gauteng Provincial Treasury on the state of municipal finances in Gauteng, including the City of Johannesburg, and is aware of the serious concerns raised by the Minister of Finance. 

The MEC fully appreciates the gravity of the situation and the direct impact that deteriorating municipal finances have on service delivery, infrastructure maintenance, payment of service providers, investor confidence, and the daily lives of residents across Gauteng. 

The concerns raised by the Minister of Finance include poor revenue collection against budgeted targets, growing cash flow challenges and over-expenditure pressures, failure to pay creditors within the legally prescribed 30-day period, continued non-compliance with MSCOA regulations, weaknesses in financial reporting systems, and concerns regarding unfunded financial commitments which may further worsen the financial position of the City.  

These are serious matters which the Gauteng Provincial Treasury has consistently raised with the City of Johannesburg at various intergovernmental forums coordinated by Treasury and attended by Chief Financial Officers of municipalities across Gauteng.  As part of the MEC’s immediate tasks under the First 100 Days Programme, through Premier’s Coordinating Forum, will develop concrete interventions to deal decisively with the poor state of municipal finances across Gauteng. Attention will be given to the metropolitan municipalities, including the City of Johannesburg, to address the concerns raised by the Minister of Finance. These interventions will focus on improving financial governance, revenue management, compliance with the MFMA, cash flow management, and restoring institutional stability. 

Through the Premier’s Coordinating Forum, and in consultation with municipalities, organised local government, and relevant stakeholders, the Gauteng Provincial Government will communicate a clear programme of action to the people of Gauteng aimed at restoring municipal financial sustainability and protecting service delivery. The MEC is in a process of finalising consultation on the press conference which will be announced in due course to specifically outline interventions on the above matters mentioned. 

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CITY OF JOHANNESBURG FINANCIAL CRISES

CITY OF JOHANNESBURG FINANCIAL CRISES

BY : CHANON LECODEY MERRICKS ONLINE EDITOR KASiBC_AFRiCA

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Johannesburg’s Financial Crisis

The Minister of Finance, Enoch Godongwana, has blown the lid off the financial meltdown in the City of Johannesburg.

In a letter to Mayor Dada Morero, leaked out of the City and dated 23 April 2026, the Minister bluntly states that the City is effectively bankrupt. It owes its creditors R25,2-billion while only having cash and cash equivalents in hand of R3,9 billion. This means the City does not have the money to pay R21,3-billion Rand owed to creditors.

This is the core reason behind the City’s inability to repair or maintain infrastructure, leading to consistent power and water outages, and the failure to fix breakdowns, resulting in the steady collapse of service provision across the board.

The Minister’s letter also bluntly states that the City has violated the laws governing municipal finances and that these illegal actions have the “potential to destroy the sustainability of the City of Johannesburg beyond this term of Office as well as the negative impact on the national economy at large.”

The Minister then issues formal notice to the City that if it is not willing to “remedy this situation with immediate effect”, the National Treasury will invoke Section 216 (2) of the constitution and hold back Johannesburg’s allocation under the Division of Revenue Act. This amounts to over R8-billion, which would be the final nail in Johannesburg’s coffin.

This will profoundly affect the whole City, and in particular the delivery of subsidized services to the poor.

The Minister’s letter follows several financial body-blows to the City in recent months:

⁠The Agence Française de Développement (AFD), refused the City’s request for a second loan of R2,5-billion because the City had failed to comply with conditions attached to an earlier loan granted in 2024.

The City’s bonds were suspended by the Johannesburg Stock Exchange for failing to submit the audited annual financial statements timeously.

Moody’s has warned of further downgrade in the City’s credit rating.

The expected regression in the City’s audit outcome.

In his letter, the Minister backed his threat by itemizing the City’s financial transgressions:

The Adjustment Budget passed in March is not funded. This amounts to unauthorized expenditure, a serious violation of the law. The City proceeded to pass the budget despite Treasury’s warnings.

The City’s failure to comply with the requirements of the Municipal Regulations on the Municipal Standard Chart of Accounts.

The City’s failure to prevent and address unauthorized, irregular, fruitless and wasteful expenditure.

The failure of the City to pay its creditors within 30 days of receiving an invoice, which is a violation of the Municipal Finance Management Act.

The unlawful introduction of the Politically Facilitated Agreement on wage adjustments into the adjustment budget. The Minister instructs the City to “stop proceeding with the implementation of this illegally signed agreement”. This vindicates the DA’s warning about the devastating financial impact of this agreement on the City of Johannesburg.

Overall, the Democratic Alliance has been warning for more than three years that the City was headed for a major financial crisis. We have also consistently warned in Council that the above decisions, alluded to in the Minister’s letter, were unlawful and that we would pursue corrective measures under Section 32 of the MFMA.

This means that we will seek to hold all councillors who supported these illegal decision in council, personally responsible for the recovery of the money lost to the City under Section 21 (1) of the MFMA which states that “Political office-bearers or officials who deliberately or negligently permit such expenditures are personally liable.”

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Over 500 Taxis taken off Roads and Vehicles Impounded

Over 500 Taxis taken off Roads and Vehicles Impounded 

BY : CHANON LECODEY MERRICKS ONLINE EDITOR KASiBC_AFRiCA

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GTI operations lead to over 500 taxis taken off roads and vehicles impounded. 

Gauteng MEC for Roads and Transport Kedibone Diale-Tlabela has commended the work of the Gauteng Transport Inspectorate (GTI) for their unwavering dedication and professionalism in traffic law enforcement efforts, particularly in public transport sector. 

This comes after GTI officers, in collaboration with the Road Traffic Management Corporation (RTMC), conducted intensified law enforcement operations across the province, resulting in the impoundments and the discontinuation of over five hundred (500) minibus taxis in the month of April 2026.   

During the month, targeted enforcement operations were conducted across the province, focused on key public transport corridors identified as high-risk for non-compliance and road safety violations. 

These included those in the major metropolitan areas of Ekurhuleni, Johannesburg and Tshwane. Officers discontinued over five hundred (500) minibus taxis for being unroadworthy, while a further five hundred and seventy-three (573) vehicles were issued with discontinue notices pending compliance. Discontinuations were as a result of serious mechanical faults ranging from defective braking systems, worn tyres, non-functional headlights, faulty brake lights and indicators, as well as cracked windscreens. 

In addition, forty-four (44) private vehicles were impounded in the City of Ekurhuleni for failing to meet minimum road safety standards.  

GTI officers also issued infringement notices to non-compliant operators: 

• More than four thousand (4,000) manual infringement notices were issued; and

• A total of four thousand one hundred and sixty-one (4,161) electronic infringement notices were processed using the inspectorate’s advanced e-Force technology. Further violations uncovered during operations included: 

• Nine hundred and fifty-seven (957) minibus operators found operating without valid driving licences; and

 • Three hundred and eighty-seven (387) minibuses operating without valid licence discs. 

The operations also resulted in the arrest of fourteen (14) motorists for serious offences, including driving under the influence (DUI), bribery, obstruction of law enforcement officers, and damage to state property. 

Additionally, one individual was arrested for contravening with Immigration Act. The inspectorate’s operations form a critical part of the Provincial Government’s broader strategy to enhance law-enforcement visibility aimed at dealing with non-compliant practices, whilst also deterring would-be offenders against road infrastructure vandalism and theft. Remarking on the outcomes, MEC for Roads and Transport, Kedibone Diale-Tlabela, said “the discontinuation and impoundments of unsafe vehicles is not merely an enforcement measure; we see it as a necessary intervention to protect the lives of commuters and all road users”.  She added “these actions must serve as an indicator that criminal conduct and reckless behaviour on our roads will not go unpunished. 

Reckless drivers beware, you will be apprehended and face the full might of the law”. With a complement of ninety-six (96) officers deployed strategically across the province, the inspectorate will continue with its ongoing efforts to restore order, combat criminality, and improve compliance with road traffic legislation, particularly within the public transport sector. 

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High Alert for Level 8 Weather Warning

High Alert for Level 8 Weather Warning

BY : CHANON LECODEY MERRICKS ONLINE EDITOR KASiBC_AFRiCA

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Western Cape Provincial Government on High Alert for Level 8 Weather Warning

The Western Cape Provincial Disaster Management Centre has placed the province on high alert following an Orange Level 8 warning for disruptive rainfall issued by the South African Weather Service (SAWS).

According to SAWS, an intense cut-off low pressure system is expected to affect the province from Tuesday afternoon (5 May), peaking on Wednesday (6 May), and continuing into Thursday (7 May).

The Garden Route District is expected to be the most severely affected, with rainfall totals of up to 150–200mm possible in parts of the region. High-intensity rainfall over short periods could lead to flash flooding, especially in low-lying and flood-prone areas. Areas that suffered from wildfires during the summer months are particularly vulnerable now, and heavy rain could result in mudslides.

In addition to heavy rain, the system is expected to bring:

Strong to gale-force winds

Very rough sea conditions, particularly between Cape Agulhas and Plettenberg Bay

Dangerous waves posing a risk to coastal infrastructure and public safety

Cold conditions, with possible snowfall over high-lying areas and mountain passes

The Provincial Disaster Management Centre, together with municipalities and emergency services, has activated monitoring and preparedness measures across affected districts. Dam and river levels are being monitored continuously, particularly where dams are already close to capacity.

Residents are urged to:

Avoid unnecessary travel during the peak of the weather event.

Stay away from rivers, streams and flooded roads.

Refrain from coastal and marine activities.

Secure loose items around homes that might become dislodged during strong winds.

Follow official warnings and updates from authorities.

Emergency services are on standby, and the province will continue to issue regular updates as conditions evolve. For emergencies, residents are advised to contact their local authorities.

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National Prosecuting Authority Action after SAPS probe into George Building Collapse

National Prosecuting Authority Action after SAPS probe into George Building Collapse

BY : CHANON LECODEY MERRICKS ONLINE EDITOR KASiBC_AFRiCA

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Minister Dean Macpherson marks second anniversary of George building collapse, urges NPA to act

Public Works & Infrastructure Minister Dean Macpherson has urged the National Prosecuting Authority to take the necessary prosecutorial decisions following the completion of the SAPS investigation into the George building collapse.

This is as the Minister commemorates the second anniversary of the collapse, which claimed the lives of 34 people and injured 28 others.

He said the tragedy remains a painful reminder of the work still required to prevent similar disasters and strengthen accountability in the built environment.

As the Minister of Public Works and Infrastructure, Dean Macpherson, commemorates the second anniversary of the George building collapse, he said the tragedy remains a painful reminder of the work still required to prevent similar disasters from taking place in the future and urged law enforcement agencies to ensure that those responsible are held accountable.

On 6 May 2024, a five-storey apartment development in George collapsed, claiming the lives of 34 people and injuring 28 others in what was South Africa’s deadliest building collapse.

Since taking office two months after the building’s collapse, the Minister has met with the victims and their families in George to communicate the outcomes of an investigation into the engineer responsible for signing off on the building plans. The engineer was found guilty of five contraventions of the law and suspended. Furthermore, the Minister this year met with the

Minister of Human Settlements specifically to tighten building regulations to ensure that a similar building collapse is avoided.

The Minister said that, with SAPS having completed its investigation, the responsibility now rests with the National Prosecuting Authority to take a decision on criminal prosecution and, where warranted, bring charges against those responsible for the building collapse.

“Today, we remember every life lost, every family still grieving, and every survivor who continues to live with the consequences of this tragedy. The George building collapse remains one of the most painful construction disasters in our country’s recent history. It was a tragedy that should never have happened, and one that must never be allowed to happen again,”

Minister Macpherson said. “With SAPS having completed its investigation, the ball is now in the court of the National Prosecuting Authority to take the necessary prosecutorial decisions and, where warranted, bring those responsible to court for this avoidable tragedy. No one should be above the law.

Not an engineer, not a developer, not an official, and not any person whose actions or failures may have contributed to this disaster. Justice delayed only deepens the pain of families who have already waited too long for answers.”

The Minister said the Department of Public Works & Infrastructure will continue to provide its full cooperation to law enforcement agencies and counterpart departments to ensure justice for the victims and their families, and provide any further support that may still be required.

“On this second anniversary, we once again express our deepest condolences to the families of those who lost their lives. We stand with the survivors. We honour the rescue workers. And we renew our commitment to ensuring that justice is done, accountability is enforced, and that a tragedy like the George building collapse never happens again.”

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