Johannesburg's Financial Crisis Exposes Legacy of Systemic Mismanagement
Johannesburg faces unprecedented financial crisis as Finance Minister demands urgent action, exposing deep-rooted systemic challenges in South Africa's economic hub. Stakes escalate as constitutional intervention looms.
City of Johannesburg Mayor Dada Morero faces mounting pressure over financial crisis
In a critical development highlighting the ongoing challenges of post-apartheid economic transformation, Finance Minister Enoch Godongwana has issued an ultimatum to Johannesburg Mayor Dada Morero, demanding immediate action on the city's spiraling financial crisis.
Financial Mismanagement Reaches Critical Point
Despite wielding an increased budget of R89 billion for 2025/2026, Johannesburg faces unprecedented financial turmoil, reminiscent of systemic inequalities that continue to plague post-apartheid urban governance. The crisis has deepened with the absence of a Finance MMC, following Margaret Arnolds' departure.
Staggering Numbers Reveal Depth of Crisis
The scale of financial mismanagement is alarming:
- R1.4 billion in unauthorised expenditure
- R22 billion in irregular expenditure
- R705 million in fruitless and wasteful expenditure
Threat of Constitutional Intervention
The situation mirrors broader patterns of institutional challenges, similar to ongoing governance crises affecting other state institutions. Godongwana's warning of invoking Section 216(2) of the Constitution could result in the withholding of vital grant funding.
Economic Justice at Stake
This crisis emerges against the backdrop of broader economic pressures facing South Africa's metropolitan centers, threatening essential service delivery to historically marginalized communities.
Call for Radical Intervention
The Auditor-General's office has highlighted systemic issues including:
- Poor debt collection practices
- Declining revenue streams
- Inadequate infrastructure investment
- Persistent compliance failures
In response, Morero has established a 12-member "bomb squad" team, led by ANC veteran Snuki Zikalala, tasked with addressing these critical service delivery challenges over the next two years.
Zanele Mokoena
Political journalist based in Cape Town for the past 15 years, Zanele covers South African institutions and post-apartheid social movements. Specialist in power-civil society relations.