Morero blames DA-led coalition for Joburg financial crisis
Johannesburg Mayor Dada Morero has blamed the DA-led coalition for the metro's financial crisis.
The city incurred over R23 billion in wasteful expenditure in the 2023/24 financial year.
Morero responded to Finance Minister Enoch Godongwana's concern over the city's ongoing non-compliance with the Municipal Finance Management Act, specifically in relation to the failure to prevent fruitless and wasteful expenditure.
Morero briefed the media in Johannesburg on Thursday.
"Our city has endured a period of mismanagement and poor leadership from previous administrations, particularly during the DA-led coalition. The R23.6 billion in unauthorised, irregular, and fruitless expenditure is a cumulative figure that has progressively increased in the city’s financial statements over the years.
"During this time, these expenditures were largely unaddressed and not regularised as required by the MFMA."
Morero, who is an ANC councillor, is currently leading a coalition local government in the country's economic hub.
The R23.6 billion comprises R13 billion (55%) in unauthorised expenditure, R9.9 billion in irregular expenditure, and R735 million (3%) in fruitless and wasteful expenditure.
Most of the unauthorised expenditure is due to bulk purchases of electricity and water that exceeded the approved budget.
"The irregular expenditure is mainly due to the city acquiring goods and services without
fully complying with supply chain regulations," he added.
In response, the mayor has established a disciplinary board to probe allegations of financial misconduct in the city.
The board will focus on timely investigations, consequence management, and regularising non-compliant expenditure.
ALSO READ:
