MEC MAMABOLO AND MAYOR MORERO STRATEGIZE ON JOHANNESBURG’S FINANCIAL RECOVERY AND SERVICE DELIVERY
JOHANNESBURG – The Gauteng Member of the Executive Council (MEC) for Cooperative Governance and Traditional Affairs (COGTA), Jacob Mamabolo, has held a high-level intervention meeting with Johannesburg Executive Mayor, Cllr Dada Morero, to address the metropolitan municipality's pressing financial and service delivery challenges.
The strategic engagement, which included senior administrative teams from both the provincial department and the City of Johannesburg, was convened under Section 154(1) of the Constitution, which mandates provincial government to support and strengthen local municipalities.
The intervention follows a recent, stringent decision by National Treasury to temporarily withhold the July 2026 equitable share transfers to 69 municipalities nationwide—including Johannesburg—in a bid to enforce stricter national fiscal discipline.
The meeting concluded with a binding five-month implementation timeline for key priority areas under the City’s comprehensive Financial Recovery Plan.
Settling Provincial Debt and Budget Stabilisation
In a major boost to the city's liquidity, MEC Mamabolo committed to actively facilitating the settlement of all undisputed debt owed to the municipality by various Gauteng Provincial Government departments. As of 31 March 2026, the provincial government owed municipalities a collective R2.641 billion, with a staggering R1.431 billion owed directly to the City of Johannesburg.
Despite the recent pressure from National Treasury, the City noted it has received formal correspondence confirming that its 2026/27 Annual Budget is officially fully funded.
Furthermore, city leadership informed the MEC that payment arrangements with critical bulk utility suppliers, including Eskom and Rand Water, remain on track, with outstanding obligations set to be settled by mid-July 2026.
Smart Technology and Infrastructure Partnerships
To structurally curb operational losses, the provincial and local spheres of government agreed to roll out several innovative turnarounds:
Water Management: The City and Province will explore a strategic partnership with the Council for Scientific and Industrial Research (CSIR) to deploy an advanced technology water management solution at no cost to the metro.
This initiative is aimed at identifying and plugging massive water distribution losses.
Energy Efficiency: City Power will scale up the implementation of smart technologies to combat a critical R2.1 billion overspending on bulk electricity purchases, while accelerating renewable energy projects and tightening revenue protection.
CBD Revitalisation: Joint operations will be intensified to revitalize investment within the Johannesburg Central Business District (CBD), specifically targeting economic nodes and the seat of the provincial government to stimulate inclusive urban growth.
Cracking Down on Irregular Expenditure
The administration presented its newly adopted strategy to drastically reduce Unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFWE), in line with National Treasury Circulars 68 and 111.
Progress has already been made in regularising approximately R1.8 billion in historical expenditure through established governance frameworks. A further R6.4 billion remains under active review by the boards of municipal entities, the Municipal Public Accounts Committee (MPAC), and the Disciplinary Board.
To minimize future accounting risks, the City is working alongside the Auditor-General of South Africa (AGSA) to produce rigorous interim financial statements.
Imminent Rand Water Maintenance Contingencies
Mayor Morero also utilized the session to brief MEC Mamabolo on major, planned Rand Water infrastructure maintenance scheduled to take place between 17 and 19 July 2026.
The maintenance shutdown is expected to temporarily affect several Johannesburg Water reservoirs and towers. The MEC was reassured that extensive mitigation frameworks are locked in, including the strategic deployment of water tankers to affected areas, with absolute priority status given to hospitals, clinics, schools, and other vital public service facilities.
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