Joburg cracks down on CBD businesses owing millions

The City of Johannesburg has intensified its crackdown on businesses operating from municipal-owned properties in the CBD, shutting down non-compliant tenants, terminating lease agreements and investigating what it believes may be internal corruption that compromised a major compliance operation.

Human Settlements MMC, Mlungisi Mabaso, says businesses operating from municipal and Johannesburg Social Housing Company (JOSHCO) properties owe the City more than R3 million in unpaid rent and service charges.

During a compliance operation on Wednesday, officials shut down several businesses accused of failing to meet their lease obligations. Among them was a shop on Wanderers Street in the Johannesburg CBD, which was closed and had its stock removed after the City alleged the tenant had accumulated rental arrears exceeding R600,000.

Mabaso says the debt continued to grow despite repeated attempts by the municipality to engage the tenant.

Mabaso says the lease agreement will now be terminated and the City will begin the process of identifying a new operator for the property. He adds that the municipality is exploring legal avenues to recover outstanding debt from defaulting tenants.

The operation forms part of a broader campaign targeting businesses accused of operating unlawfully, breaching lease agreements or failing to pay rent at municipal and JOSHCO-owned properties.

However, the operation also raised concerns about possible internal sabotage.

According to Mabaso, several businesses earmarked for inspection had already closed their doors before officials arrived, despite efforts to keep the operation confidential. He says this suggests information may have been leaked ahead of the inspections.

Mabaso says the absence of some housing supervisors during the operation further fuelled suspicions that certain officials may be undermining the City’s enforcement efforts.

He says rooting out corruption within the municipality will be critical if Johannesburg is to effectively combat illegal business activity and enforce accountability.

The City says inspections have uncovered widespread non-payment among tenants operating from municipal commercial properties, with some businesses owing substantial amounts in unpaid rent. Authorities are now considering legal action and other measures to recover lost revenue, including exploring options relating to stock left behind in affected premises.

Mabaso says the municipality remains committed to enforcing lease agreements, recovering money owed to the City and ensuring municipal properties are used lawfully and responsibly.

The latest operation forms part of ongoing efforts to improve compliance, strengthen oversight and recover millions of rand in unpaid municipal revenue.

HAPPENING: City officials, led by MMC for Human Settlements Mlungisi Mabaso, are inspecting illegal business activity in municipal housing units in Hillbrow.

The City says some businesses operate without valid leases, while others owe rent and municipal fees.#YNews pic.twitter.com/1U1HkHnBOa

— Ndashe (@ndasheii) June 10, 2026

Written by: Lebohang Ndashe