Johannesburg’s Money Talk: What the Mayor Said
Why the City Is in the Spotlight
The national Treasury has been looking closely at Johannesburg’s books. In response, Executive Mayor Dada Morero spoke to the media to calm worries and explain what’s being done.
The Good News: Budget Is Funded
Morero announced that the Department of Finance confirmed the city’s 2026‑27 annual budget is fully funded. He said this shows the financial management is “in order” and not in crisis, though cash flow still needs work.
Steps Taken to Boost Accountability
- The city invoked Section 216(2) of the Constitution and Section 38(1) of the Municipal Finance Management Act (MFMA) to tighten financial oversight.
- Regular talks with the Ministry of Finance and the Presidential Finance Working Group are already producing results.
- A recovery plan focuses on transparency, better controls, and clearing overdue bills to bulk service providers.
Paying the Big Bills
Rand Water and Eskom are set to receive their payments by mid‑July. This should keep water and electricity flowing smoothly.
Tackling Wasteful Spending
The city is cutting unauthorized, irregular, fruitless and wasteful expenditure (UIFWE) following National Treasury guidelines.
- About R1.8 billion of past spending has already been regularised.
- Another R6.4 billion is under review by municipal corporation boards.
Where the Money Is Going Wrong
City Power’s Electricity Purchases
Buying too much electricity has been the biggest overspend, adding R2.1 billion by the end of the third quarter.
Pikitup’s Waste‑Management Woes
The waste‑collection company is facing cash‑flow problems, but the Metro Trading Services Reform Program will protect funds for truck maintenance, fuel, landfill work, and other essentials. Garbage collection resumed on Tuesday after a brief disruption.
Revenue Systems Need an Upgrade
Morero admitted that the city’s billing and revenue platforms are outdated and must be modernised to improve collections.
Essential Services Stay Protected
Despite the challenges, the mayor promised that water, electricity, waste removal, and public safety will keep running. Money will be recovered through better collections and tighter cost control.
Big‑Ticket Infrastructure Projects
- A €200 million (≈ R3.8 billion) loan from Germany’s KfW bank will modernise City Power’s infrastructure.
- Around R1.75 billion is set aside for Johannesburg Water’s capital projects.
Heads‑Up: Rand Water Maintenance Shutdown
On July 17, Rand Water will do maintenance from 7 a.m. to 7 p.m., which could lower water pressure or cause temporary outages in areas like Sandton, Midrand, Randburg, Roodepoort, Soweto, Lenasia, and parts of the inner city.
Morero warned that even after the work ends, reservoirs and towers need time to refill, so normal supply may take a day or two to return. He urged residents to store water beforehand and use it sparingly.
Looking Ahead
Johannesburg’s leaders say the road to recovery won’t be instant, but the new focus on discipline, transparency, and accountability is already making a difference. Regular updates will keep residents, the council, and the Treasury in the loop as the city works to fix cash flow, improve services, and invest in its future.
