Parties divided over calls to place City of Joburg under financial administration

What prompted the debate

Finance Minister Enoch Godongwana wrote to Johannesburg mayor Dada Morero raising concerns that the city is in severe financial distress. The minister highlighted alleged ongoing violations of the Municipal Finance Management Act (MFMA) and said there were signs of deterioration in governance and overall financial health.

According to the letter cited by sources, the amount owed to creditors rose from R17 billion in 2022/23 to R25.2 billion in 2024/25, while the city’s cash and cash equivalents of R3.9 billion in 2024/25 were insufficient to cover those outstanding creditors.

DA calls for administration; other parties push back

The DA, through Gauteng provincial leader Solly Msimanga, has demanded that President Cyril Ramaphosa place the city under financial administration. The DA said it would continue to press for intervention to ensure the city is placed under administration.

ActionSA rejected the DA’s demand, warning that administration could amount to political theatre rather than a meaningful recovery plan. Johannesburg caucus leader Councillor Marcel Coutriers argued that administration risks adding another layer of governance instead of delivering services or restoring trust.

“Administration offers distance from responsibility, not delivery. It may stabilise spreadsheets, but it rarely fixes streets, restores electricity reliability, or rebuilds pay-for-service trust with residents. The city’s crisis is serious,”

Coutriers said the city needs honest leadership and reform rather than what he called “gimmicks”.

Other perspectives

Freedom Front Plus (FF+) councillor Franco de Lange said placing the city under administration might be pointless so close to the end of the term, noting the overlap between provincial and local ANC leadership if the move were to occur.

Mayor and minister agree on follow-up

Godongwana and Morero met and agreed the mayor and city officials would consider remedial actions responding to the minister’s concerns and submit a formal report to the National Treasury. On Tuesday, Morero said he was finalising an official written response with the administration to send to Godongwana.

He said: “the city gave a proper background to an extent that Godongwana was able to understand… the meeting went very well and we believe that the municipality has cleared the issues that needed to be cleared”.

What happens next

According to the correspondence between the minister and the mayor, the city will prepare a formal response outlining remedial steps. Parties remain divided on whether formal intervention through financial administration is the correct path.

Key facts:

• Minister: Enoch Godongwana raised concerns about severe financial distress.
• Mayor: Dada Morero to submit an official written response to the National Treasury.
• Debt figures cited: Creditors increased from R17bn (2022/23) to R25.2bn (2024/25); cash and cash equivalents were R3.9bn (2024/25).