Joburg denies financial crisis as Treasury intervention, refuse backlog and water maintenance test service delivery

The City of Johannesburg has rejected claims that it is financial crisis despite National Treasury invoking constitutional and municipal finance provisions over concerns about the metro’s financial management, as residents continue to grapple with refuse collection delays and brace for planned water disruptions later this month.

Speaking at a media briefing on Wednesday, Executive Mayor Dada Morero, said National Treasury had confirmed that Johannesburg’s 2026/27 budget is fully funded. However, he acknowledged that the City must urgently improve cash flow, strengthen revenue collection and tighten financial controls to restore its financial position.

The intervention follows Treasury’s decision to withhold July equitable share allocations from several municipalities, including Johannesburg, over concerns about financial governance and compliance with the Municipal Finance Management Act. Morero said the City would fully cooperate with Treasury, stressing that the intervention does not mean Johannesburg is financially insolvent.

He said the City plans to settle outstanding payments owed to Eskom and Rand Water once its equitable share allocation is released. He added that measures are being implemented to reduce irregular expenditure, rebuild supplier confidence and safeguard essential services, including electricity, water and refuse collection.

This also comes as National Treasury says service delivery should not be affected despite its decision to temporarily withhold this months grant funding to 69 municipalities over poor financial management and governance failures.

Treasury says the R13.5 billion, which was due to be released on Wednesday, has been withheld to strengthen accountability and ensure public funds are managed responsibly.

The affected municipalities include Johannesburg, Nelson Mandela Bay and Buffalo City, with Treasury accusing them of irregular expenditure, failing to investigate corruption and neglecting to hold officials accountable. Treasury says the funding could be restored if the municipalities meet the required standards.

Meanwhile, Morero further announced that refuse collection has resumed after cash flow constraints delayed payments to service providers, disrupting waste collection across parts of the city. He said funding has now been released to the City’s municipal entities, allowing operations to restart while teams work to clear the backlog.

The disruptions sparked widespread frustration, with some residents reporting that refuse had gone collected for more than three weeks.

Meanwhile, Johannesburg residents have been urged to prepare for water supply disruptions when Rand Water begins the second and final phase of its planned maintenance programme on 17 July.

Morero said several areas are expected to experience low water pressure or intermittent water outages while the maintenance is under way.

The maintenance follows the completion of the first ​phase in May and June. During the second phase, Eskom will continue maintenance at the Zuikerbosch Water Treatment Plant while Rand Water undertakes pipeline upgrades, reducing pumping capacity across several systems.

Rand Water has warned that municipalities including Johannesburg, Tshwane and Ekurhuleni could experience intermittent water supply during the maintenance period, with full recovery expected to take time as reservoirs and water towers refill after pumping resumes.

As the City of Johannesburg, we have been working with National Treasury. Not only have we been working through the Intergovernmental Relations structure, but we have been working through the Presidential Finance Working Group led by the President and the Executive Mayor. A few…

— Executive Mayor: @CityofJoburgZA (@DadaMorero) July 8, 2026

Written by: Lebohang Ndashe