Interventions underway to stabilise Joburg’s finances, says Lesufi
The Gauteng provincial government has confirmed it is working closely with the City of Johannesburg and national authorities after Finance Minister Enoch Godongwana issued a stern warning over the City's deteriorating finances.
Gauteng Premier Panyaza Lesufi addressed the media in Johannesburg on Sunday, saying he had already received a preliminary report from Johannesburg Mayor Dada Morero in response to the minister’s letter.
"With the bomb squad that is established and the Presidential team that has been assigned to assist us here, all these issues that are identified are issues that already they've moved on," Lesufi said.
According to Lesufi, Mayor Morero has committed to submitting a comprehensive report to the province, which will then be forwarded to the National Treasury.
Lesufi emphasised that meaningful progress has already been made in stabilising the metro.
Godongwana’s letter, reportedly sent at the end of July, warned the Mayor of possible national intervention if a credible recovery plan was not submitted within two weeks.
The letter cited over R24 billion in irregular, fruitless and wasteful expenditure in 2024, and accused the City of failing to comply with the Municipal Finance Management Act.
Johannesburg, which manages an R89 billion budget, is battling persistent infrastructure failures and financial mismanagement.
Water and electricity outages, decaying roads, and collapsing bridges have become commonplace. Around 40% of the city's water supply is lost due to leaks, and 35% of electricity is lost to theft and illegal connections.
The city has been under scrutiny before.
In November 2024, Electricity Minister Kgosientsho Ramokgopa had to mediate between the city and Eskom over unpaid debts.
President Cyril Ramaphosa also publicly criticised the state of the city earlier this year, as Johannesburg prepares to host the G20 Summit in November 2025.
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