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Is Joburg On The Brink Of Financial Collapse?

Rabia Mayet | rabiamayet@radioislam.co.za

07 May 2026

2-minute read

As the National Treasury moves to freeze Joburg’s funding, putting 6 million residents at risk, Rise Mzansi says it has grave concerns with regards to accountability in the city.

Makashule Gana from Rise Mzansi says that scathing correspondence from the Minister of Finance, Enoch Godongwana, to the Mayor of Joburg, Dada Morero, is “a very damning letter,” and one of extreme concern given the way Mayor Morero has been mismanaging the city’s finances, as assessed by Treasury.

“The deep rot and the mismanagement” that has been taking place in Johannesburg were clearly illustrated in the letter. Workers in the city are at risk of not being paid their salaries due to decisions taken for political gain, in place of prudent financial management of resources.

According to Gana, the mayor, who was previously the MMC of Finance, knew full well about the signing of the wage bill and is at fault for doing nothing about it. He “would have, could have and should have foreseen” the current crisis resulting from these financial decisions, Gana emphasizes. He further states that the problems within municipalities are not machine problems or system problems, but manmade problems.

With the upcoming local government elections scheduled to take place in November, voters have a choice to put another party, and thereby, effectively, another mayor, in power. In the short term, replacing the current mayor which will not bring about the required changes, Gana notes. What is required immediately is that illegal actions should be reversed, the Presidential Working Group ought to be strengthened, and finances must be “cleaned up,”

Rise Mzansi is calling for the Presidential Working Group and Treasury to move into the city to stabilise finances in Johannesburg and avert the crisis.

Listento the full interview with Ml Sulaimaan Ravat and Makashule Gana here.

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