A panoramic view of Johannesburg’s city center featuring high-rise buildings, ongoing construction, and vibrant city life.
South Africa’s National Treasury is withholding state funding from Johannesburg and several other municipalities this month, citing chronic failures to manage municipal finances responsibly. Officials said the move aims to enforce fiscal discipline and accountability after repeated violations of the Municipal Finance Management Act. Finance Minister Enoch Godongwana had previously criticized Johannesburg over a costly wage agreement that would add roughly $634.5 million to the city’s payroll obligations over two years. Municipalities can regain access to funds by reducing unauthorized and wasteful expenditure by at least 25% before the end of September, reaching payment agreements with creditors, and demonstrating that previous government allocations were used appropriately. The funding freeze deepens Johannesburg’s financial troubles, as the city already owes substantial sums to power and water utilities and has halted road maintenance due to unpaid fuel bills. Other affected municipalities include Mangaung, Nelson Mandela Bay, Buffalo City, and Mopani.
Bloomberg