Johannesburg's financial crisis prompts urgent meeting between Finance Minister Godongwana and Mayor Morero
via The Citizen3 min read
The City of Johannesburg is facing a significant financial and governance crisis, highlighted by a critical letter from the National Treasury. Finance Minister Enoch Godongwana and Johannesburg Mayor Dada Morero are meeting in Pretoria to address the city's financial mismanagement. Johannesburg has less than R4 billion in cash, owes over R25 billion to creditors, and has committed to a R10.3 billion wage deal with the South African Municipal Workers Union Samwu, which Treasury deems unaffordable. Godongwana had previously warned that Treasury would withhold R8 billion due to the city in July if its financial trajectory continued. Political analyst Theo Neethling noted that Godongwana's actions, despite being an ANC minister, are in the city's best interest, emphasizing the deepening crisis for the ANC in Johannesburg ahead of elections. The ANC faces pressure to balance support for organized labor, particularly Samwu, with Treasury's demands for fiscal discipline. The silence of ANC regional chairperson and deputy mayor Loyiso Masuku on the matter has also been noted, as opposition parties argue she cannot distance herself from the financial problems that developed during her tenure as MMC for finance.
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Must ReadThe Constitutional Court ruled on May 8, 2026, that Parliament acted irrationally in December 2022 by rejecting the referral of a Section 89 panel report to an impeachment committee. This decision mandates the National Assembly to establish an impeachment committee, as outlined in Rule 129I, to investigate President Cyril Ramaphosa. The inquiry will focus on three potential grounds for removal: serious violation of the constitution or law, serious misconduct, or inability to perform duties. Key aspects of the investigation will likely include the origin of $580,000 stolen from Ramaphosa's Phala Phala game farm in February 2020, which he stated was payment for buffaloes to Sudanese businessman Hazim Mustafa. Questions persist regarding the cash transaction, the non-delivery of the buffaloes, and why the money was not returned. The inquiry will also examine allegations of a cover-up, including the failure to report the burglary to the South African Police Service and the alleged involvement of Wally Rhoode, head of the Presidential Protection Service, in a cover-up and unlawful cross-border activities. The storage of the cash for 44 days without declaration to the South African Reserve Bank, violating Exchange Control Regulations, will also be scrutinized. Following the committee's report, the National Assembly will vote on removal, requiring a two-thirds majority of 267 votes. The current Government of National Unity, comprising the ANC and its partners, holds 287 seats, indic
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