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 Fran莽aise de D茅veloppement 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
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Some members of the Democratic Alliance DA are reportedly upset about the decision to remove former DA leader John Steenhuisen from his position as agriculture minister. The discontent stems from an alleged agreement between current DA leader Geordin Hill-Lewis and Steenhuisen, where Steenhuisen would retain his ministerial role if he did not seek another term as party leader. Hill-Lewis has since written to President Cyril Ramaphosa, proposing Steenhuisen's replacement by Willie Aucamp as agriculture minister, with Steenhuisen moving to deputy minister of trade, industry and competition. Ramaphosa has not yet confirmed these changes. Some DA members claim they were not consulted on the reshuffle, with one source suggesting that Hill-Lewis's decision has exposed party divisions and that Steenhuisen feels "betrayed." Political analyst Prof Theo Neethling indicated that the move might be "pure DA damage control" due to Steenhuisen's handling of the foot-and-mouth disease crisis, which alienated many farmers. Hill-Lewis, however, stated his decision was made in the best interests of the DA and the government of national unity, prioritizing public and voter loyalty.
Duduzile Zuma-Sambudla, daughter of party leader Jacob Zuma, stated she does not hold her father responsible for her expulsion from the MK party, instead blaming individuals surrounding the party's leadership. She made these comments at a media briefing on Sunday, following her and former national spokesperson Nhlamulo Ndhlela's expulsion from the party on Thursday. Zuma-Sambudla indicated she has not yet discussed the expulsion with her father but plans to do so next week. The party cited a series of actions, public statements, and activities by Zuma-Sambudla and Ndhlela as reasons for their removal. Zuma-Sambudla was accused of undermining party unity and promoting factional narratives, while Ndhlela was accused of unauthorized media briefings and misrepresenting party positions. Ndhlela claims that both his and Zuma's roles in the MK party were undermined and that he and Zuma-Sambudla will challenge their expulsions in the high court, asserting that no disciplinary hearing was held before their removal.
A Limpopo councillor, Netshivhumbe Gumani, 44, was arrested for allegedly attempting to bribe a Special Investigating Unit SIU investigator with R70,000 to disregard evidence in a corruption probe. The investigation concerns allegations of maladministration and corruption related to two tenders by the Mahikeng Local Municipality. Gumani reportedly approached three SIU investigators, offering R10,000 in cash as part of the bribe during a meeting in Mahikeng. The SIU, in collaboration with the South African Police Service and the Hawks, conducted an entrapment operation leading to Gumani's arrest. He faces corruption charges and appeared in the Molopo Magistrates' Court, with his case postponed to June 29, 2026, for a bail application. The SIU stated that its investigators maintain high integrity and that attempts to corrupt them will be met with legal action.