Enoch Godongwana’s intervention in the running of Johannesburg’s financial affairs, in which the finance minister read the riot act to mayor Dada Morero over the city’s financial shambles, could not have come too soon.
Godongwana views the situation in Johannesburg so gravely that he gave Morero a deadline of just two weeks to come up with a credible plan to arrest the administrative decay — on pain of withholding discretionary funds to the city.
In a scathing letter that should alarm the citizens of Johannesburg, Godongwana accused Morero of “persistent noncompliance” with the Municipal Finance Management Act and of taking “little to no action” to address the city’s financial problems. Among the management failings was the incurring of billions of rand in irregular and unauthorised expenditure.
It subsequently emerged that Godongwana has set his sights on other delinquent metros, including Tshwane, Buffalo City and Mangaung. While Johannesburg may not be the only culprit, it is an important city for the country — yet stands as a shameful symbol of gross leadership failures, with dire consequences for residents and businesses.
The mismanagement of Johannesburg’s finances is perhaps matched only by its chaotic and ineffectual administration — evidenced by the poor delivery of services and the neglect of its road, power and water infrastructure.
Directing Morero to “take all necessary steps to rectify the situation”, the finance minister urged him to produce a plan of action “to address the failure to implement ... consequence management against the responsible officials, including any councillors who may have contributed to the failure”.
Godongawana’s intervention comes as no surprise, following as it does previous reports by auditor-general Tsakani Maluleke in which she decried “weak controls” in Johannesburg and other metros, where there was a lack of accountability in how public funds were managed. Rounding on Johannesburg, Maluleke said the metro lacked the necessary skills to perform the basic, yet critical, function of compiling credible and compliant financial statements.
It may be time for national intervention to reverse the decay and mismanagement not only of Johannesburg but of many other councils that are dysfunctional
The state of the city is also what prompted President Cyril Ramaphosa to form a presidential intervention task team earlier this year, but whose impact is yet to be felt.
The situation in Johannesburg suggests not only performance failure on the part of its bureaucracy, but serious dereliction of duty by elected councillors who are supposed to provide oversight. Instead of focusing on improving the performance of the city, thus the quality of life of citizens, councillors have shown a predilection to prioritise power grabs for themselves and their political parties. It is time they asked themselves hard questions about their culpability in the predicament in which the city finds itself.
Given the highly politicised atmosphere in the city, where self-serving horse-trading has superseded service to citizens, it remains to be seen if Morero has the stomach to act against the culprits, as suggested by Godongwana.
Also, in light of the endemic and deepening failures in the city’s administration, questions must be asked about Johannesburg’s leaders. Are they not in over their heads when it comes to running a modern city?
Godongwana has taken a step in the right direction. The Treasury, as he told Morero, will continue to monitor Johannesburg’s finances. It may be time for national intervention to reverse the decay and mismanagement not only of Johannesburg but of many other councils that are dysfunctional.
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