EDITORIAL | Joburg running out of road

Finance minister’s threat to withhold billions signals deep concern over the city’s finances

City of Johannesburg mayor Dada Morero with finance minister Enoch Godongwana. (ANTONIO MUCHAVE)

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Finance minister Enoch Godongwana has — for the second time in a year — put Johannesburg on notice that its finances are a threat not only to the city, but to the country as a whole.

Joburg mayor Dada Morero, who heads the ANC-led coalition in charge of the metropole, denies the scale of the problem.

The facts, however, paint a picture of sharp and continuing deterioration in the city’s finances. This manifests itself in the decay visible to residents and visitors — potholed roads, unkempt and dangerous parks, water and electricity outages, abandoned municipal buildings, including the civic centre, and spiralling utility bills.

While service delivery falters, the heads of entities meant to provide those services continue to take home multimillion-rand pay packages. Yet 30% of electricity and about half the water supplied by the city are not paid for.

Central to Godongwana’s complaint is the R10.3bn wage deal signed with the South African Municipal Workers’ Union before the G20 summit in Joburg, when the union threatened to bring the city to a halt. The minister described the agreement as “illegally signed”, warning that “you have committed the city to a financial obligation that is not possible to fulfil”.

Behind the figures lurks a political leadership seemingly preoccupied with posts and perks, as the ANC struggles to hold together a coalition whose focus often appears more intent on milking ratepayers than governing effectively. Corruption, waste, theft and mismanagement are taking a toll.

Joburg, once billed as a “world-class African city”, is becoming a pit of despair. Morero insists the metropole is not ready to be put under administration, but judging from Godongwana’s letter — and his threat to withhold about a tranche of its equitable share funding — time is running out for the city’s political leadership.


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