Morero papers over cracks in Johannesburg finances as Treasury freezes funds

By Thebe Mabanga

City of Johannesburg mayor Dada Morero appeared to paper over growing concerns about the city’s finances on Wednesday after National Treasury took the drastic step of withholding Johannesburg’s R3.5 billion equitable share allocation. Instead, the city announced it had secured about R5 billion in loans for water and electricity infrastructure.

Treasury is acting under Section 216 of the Constitution and Section 38 of the Municipal Finance Management Act. In total, it withheld R13.5 billion in transfers to 69 municipalities.

Responding to the funding freeze at a media briefing, Morero outlined measures that provided little detail on how the city’s finances would be stabilised.

Morero referred to a meeting with Treasury in May and subsequent correspondence, while overlooking the fact that the engagement failed to prevent the grant suspension.

“Our working relationship with National Treasury is yielding results,” Morero said.

“As we speak, we have received correspondence from