By Lebone Rodah Mosima
City of Johannesburg mayor Dada Morero has moved to reassure residents following recent correspondence from Finance Minister Enoch Godongwana regarding municipal financial management.
Morero said the correspondence was received by his office last week, after which he engaged directly with the minister to discuss the contents of the letter and the issues raised.
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He said both parties had agreed to convene a formal engagement between the City of Johannesburg and the Ministry of Finance to address and clarify the matters outlined.
“The City acknowledges the critical oversight and governance role of the Ministry of Finance in engaging municipalities on matters of financial sustainability, governance, and accountability,” Morero said.
He added that the city remained fully committed to cooperating with the ministry and would provide all required information in line with established practice between National Treasury and the municipality.
Morero confirmed that he has formally requested a meeting with the minister and is awaiting confirmation of the engagement date.
“The Executive Mayor assures residents, stakeholders, investors, and the broader public that there is no cause for concern,” the statement read.
“The City administration remains fully operational and continues to exercise effective oversight and control over the municipality’s financial and governance responsibilities.”
He said the city was confident it would provide satisfactory responses to the issues raised and remained committed to transparency, accountability and sound financial management in the interests of Johannesburg residents.
Morero added that further updates would be communicated to residents and the media following engagement with the minister.
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Meanwhile, Gauteng Finance MEC Nkululeko Dunga said this week he was aware of correspondence between Godongwana and Morero regarding the possible withholding of the city’s equitable share due to alleged breaches of budget laws and related regulations.
The Gauteng Treasury said Dunga had been briefed on the state of municipal finances in the province, including the City of Johannesburg, and was fully aware of the concerns raised by the minister.
“The MEC fully appreciates the gravity of the situation and the direct impact deteriorating municipal finances have on service delivery, infrastructure maintenance, payment of service providers, investor confidence and the daily lives of residents across Gauteng,” the Treasury said.
It said the minister’s concerns included poor revenue collection against budget targets, worsening cash flow pressures, failure to pay creditors within the legally prescribed 30-day period, continued non-compliance with mSCOA regulations, weaknesses in financial reporting systems and concerns over unfunded financial commitments.
The Treasury said Dunga’s immediate priorities under the provincial government’s First 100 Days Programme, through the Premier’s Coordinating Forum, included developing interventions to address weak municipal finances across Gauteng, with a focus on metropolitan municipalities such as Johannesburg.
“These interventions will focus on improving financial governance, revenue management, compliance with the MFMA, cash flow management and restoring institutional stability,” the Treasury said.
It added that the Gauteng Provincial Government, in consultation with municipalities, organised local government and other stakeholders, would communicate a programme of action aimed at restoring municipal financial sustainability and protecting service delivery.
The Treasury said Dunga was finalising consultations ahead of a press conference that would outline interventions to address the issues raised.
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