Godongwana confident Joburg can turn finances around

Finance Minister, Enoch Godongwana, says he is optimistic that the City of Johannesburg can reverse its financial decline following high-level talks aimed at stabilising the metro’s finances and restoring public confidence.

Godongwana met with Johannesburg Mayor, Dada Morero, National Treasury officials, Deputy Water and Sanitation Minister, David Mahlobo, Gauteng Cooperative Governance MEC, Jacob Mamabolo, and senior city officials on Tuesday to assess the municipality’s financial position and recovery plan.

The minister said he would return to Johannesburg in September to assess whether the city has made meaningful progress in addressing its financial and governance challenges.

The meeting comes after National Treasury withheld the city’s July equitable share allocation over concerns about irregular, unauthorised, fruitless and wasteful expenditure, weak financial controls and deteriorating governance. 

Johannesburg is now among 42 municipalities that have since received part or all of their withheld allocations after engaging with Treasury.

Morero said the city had presented an honest assessment of its financial position, inner city rejuvenation plans and infrastructure projects.

Johannesburg is among 42 municipalities that have since had part or all of their withheld allocations released after engaging with Treasury.

“We provided an honest and comprehensive overview of our financial status, Inner City Rejuvenation project and infrastructure developments. There was no embellishment, only the facts and our ongoing efforts,” Morero said.

He said the city would prioritise improving cash flow management, strengthening revenue collection and protecting essential services while implementing corrective measures to restore long-term financial sustainability.

“It was a very progressive meeting. What was important was taking the minister into confidence about the city’s current financial position and the interventions required to ensure that we succeed,” Morero said.

The latest engagement follows an earlier meeting between Godongwana and Morero in May, after a leaked National Treasury letter warned that Johannesburg’s worsening financial position and governance failures could result in funding being withheld.

At the time, Treasury flagged the city’s growing debt, poor financial management and weakening governance systems, prompting Morero to commit to a financial turnaround strategy.

The September assessment is expected to determine whether Johannesburg has made sufficient progress to meet Treasury’s conditions and avoid further financial intervention. 

We had a productive engagement with the Minister of Finance to reflect on the progress we have made, confront the challenges that remain, and agree on practical interventions to strengthen the City’s financial position.

We welcome the Minister’s commitment to return in September… pic.twitter.com/UhQKJbpznw

— Executive Mayor: @CityofJoburgZA (@DadaMorero) July 21, 2026

This morning I joined the Minister of Finance, Hon. Enoch Godongwana, Gauteng MEC for Cooperative Governance and Traditional Affairs, Hon. Jacob Mamabolo, Executive Mayor of the City of Johannesburg, Cllr Dada Morero, together with officials from the National Treasury, the… pic.twitter.com/5lrky8iBZM

— David Mahlobo (@David_Mahlobo1) July 21, 2026

I have written a letter to Minister of Finance, Enoch Godongwana, recommending a technical support team to monitor National Treasury funds that will be transferred to the City of Johannesburg.

ActionSA’s position is clear – Executive Mayor, Dada Morero, and the City’s leadership…

— Herman Mashaba (@HermanMashaba) July 20, 2026