Zille shares minister's alleged claim in Joburg letter: 'The city is effectively bankrupt
via The Citizen13 min read
Finance Minister Enoch Godongwana has reportedly informed Johannesburg Mayor Dada Morero that the City of Johannesburg is effectively bankrupt. This claim was revealed by DA's mayoral candidate, Helen Zille, who shared contents of a leaked letter from Godongwana. The letter details significant financial issues within the city, including unfunded budgets, difficulties in paying contractors, reckless financial decisions, and fruitless and wasteful expenditure. Zille stated that the city owes R25.2 billion to creditors but only possesses R3.9 billion in cash, leaving a R21.3 billion shortfall. This deficit is cited as the primary reason for the city's inability to maintain infrastructure, leading to consistent power and water outages and a general decline in service provision. Furthermore, Godongwana's letter allegedly indicates that the city has violated municipal finance laws, actions that could jeopardize Johannesburg's long-term sustainability. The minister has reportedly issued a formal notice, threatening that the National Treasury will withhold Johannesburg's R8 billion allocation under the Division of Revenue Act if the situation is not immediately remedied, which Zille warns would be catastrophic for the city, particularly for subsidized services to the poor. Zille also mentioned that the Agence Française de Développement refused a R2.5 billion loan request due to non-compliance with previous loan conditions, the Johannesburg Stock Exchange suspended the city's bonds fo
Free daily or weekly digest of the most important stories from across 18 African countries. No spam, unsubscribe any time.
This summary was AI-generated from a story originally published by The Citizen.
Must ReadMinister in the Presidency Khumbudzo Ntshavheni stated that South Africa cannot prevent other countries from issuing advisories to their citizens, emphasizing that the country's laws must be respected by all. She made these remarks during a media briefing on the outcomes of a recent Cabinet meeting, where immigration issues were a key topic. Several countries, including Kenya, Malawi, and Nigeria, have issued advisories for their citizens in South Africa amidst protests against illegal immigration. Ntshavheni highlighted that undocumented individuals must comply with the law and pointed out the "hypocrisy" of some African countries that criticize South Africa while engaging in similar actions within their own borders. She also stressed the need to address illegal activities by foreign nationals, such as criminality, intimidation, and drug dealing, asserting that South Africans will not tolerate being undermined in their own country. Regarding Ghana's request for the African Union to discuss the protests, Ntshavheni affirmed that South Africa is prepared to explain the situation, maintaining there are no xenophobic attacks in the country. She condemned the spread of fake videos and images, stating they aim to damage South Africa's international reputation. Ntshavheni also dismissed claims that the government is not addressing illegal immigration, citing ongoing efforts like strengthening border management, accelerating deportations, and intensifying workplace inspections to en
Questions have arisen regarding former Midvaal mayor Bongani Baloyi's potential as the MK party's mayoral candidate for the City of Johannesburg. Despite reports of a faction within the MK party supporting Baloyi for the role, his name was notably absent from the list of individuals announced to lead the party's election campaign in Joburg and other parts of Gauteng. On Wednesday, 6 May, the party's secretary-general, Sibonelo Nomvalo, stated that the regional task teams are intended to position the MK party as a viable political alternative for improving local government in South Africa. Political analyst Theo Neethling highlighted concerns about Baloyi's ideological consistency, given his political journey from the DA to forming his own party, Xiluva, and then joining the MK party. Neethling suggested that while Baloyi has a reputation for good governance, the MK party's populist and confrontational style might not align with his image. Another analyst, Andre Duvenhage, expressed little surprise at Baloyi's exclusion, noting that Baloyi might be too moderate for the MK party's radical approach. Duvenhage also indicated that while the MK party is unlikely to secure a majority in Johannesburg, a strong performance could make them a significant player in coalition formations after the elections.
A dispute has emerged regarding Ekurhuleni's electricity debt, with the ANC-led coalition government rejecting claims of a financial crisis, while the DA insists the situation is serious. DA member of the provincial legislature, Mike Waters, cited an Eskom debt figure of approximately R7 billion, suggesting a deepening financial problem. However, Ekurhuleni MMC for Finance, Jongizizwe Dlabathi, stated that the alleged figure is incorrect and does not indicate an immediate financial breakdown. Dlabathi clarified that most of the outstanding balance is current, with only about R1 billion being overdue, and that the city is not at risk of Eskom disconnections. He suggested the narrative around the debt lacks full understanding of the details. In contrast, Waters maintained that a written reply from the provincial Treasury confirmed Ekurhuleni owes Eskom R6.948 billion and that no action has been taken. He questioned how such a debt accumulated, raising concerns about the accuracy of reporting and the sustainability of the city's finances, and warned of potential electricity supply disruptions for residents and businesses. Dlabathi noted ongoing efforts to stabilize city finances, including campaigns to address non-paying businesses and residents. Simon Lapping, however, suggested the issue extends beyond a single figure, pointing to poor financial management, inflated prices, and incomplete projects, and questioned the accuracy of official financial reports.
Must ReadDeputy President Paul Mashatile expressed confidence that the ANC will "inevitably" win the 4 November local government elections, urging supporters to campaign with conviction. However, political analysts like Theo Neethling and Professor André Duvenhage suggest that the ANC's support is declining, with some surveys indicating it could fall below 30%. They predict the party will perform better in rural areas due to entrenched loyalties but will likely lose dominance in urban centers and major metros, necessitating coalition governments. John Molepo, an associate professor, views Mashatile's statement as a morale-boosting effort, acknowledging that polls show a decline in ANC support and an increase in coalition politics. Analysts agree that a return to the ANC's past dominant position is unlikely, and the party needs to address issues like corruption and candidate selection to improve its performance.