Joburg mayor Dada Morero says he has requested a meeting with finance minister Enoch Godongwana, who has cancelled the R10bn salary increase between the city and workers after calling it an illegally signed agreement.
The increases were going to be paid in batches as of March, with the last batch expected to be in July.
However, on Wednesday Godongwane told Morero that Joburg cannot afford the wage bill, instructing him to “cease implementation of this illegally signed agreement”.
“It has the potential to destroy the sustainability of the City of Johannesburg beyond this term of office, with negative implications for the national economy,” Godongwana said.
“You are well aware that the city cannot afford this agreement.”
Morero has since called for calm among residents, emphasising that there is no cause for concern as he awaits confirmation of a meeting with Godongwana.
I want to assure residents, stakeholders, investors, and the broader public that there is no cause for concern.
— Dada Morero, Joburg mayor
He said the city had acknowledged the critical oversight and governance concerns raised by the minister in the letter received last week.
“Thereafter, the mayor engaged directly with the minister to discuss the contents of the letter and the issues raised. Both parties have since agreed to convene a formal engagement between the city and the ministry of finance to address and clarify the matters outlined,” he said.
“I have formally requested a meeting with the minister, and the city is awaiting confirmation of the engagement date.”
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The wage agreement is one of several alleged breaches of financial regulations highlighted by the Treasury.
In a scathing letter, the minister outlined multiple concerns, including revenue collection falling short of budgeted targets and persistent weaknesses in cash flow reporting.
“The city continues to face difficulties with cash flow reporting, with notable discrepancies, particularly relating to opening balances and cash from investing activities,” the minister said in the letter.
Morero said the city is confident it will provide satisfactory responses to the issues raised.
“I want to assure residents, stakeholders, investors, and the broader public that there is no cause for concern.
“The city is confident it will provide satisfactory responses to the matters raised and remains steadfastly committed to transparency, accountability, and sound financial management in the best interests of the residents of Johannesburg,” he said.
According to the National Treasury, failure to comply with the directive could result in the withholding of the city’s July 2026 equitable share instalment.
Sowetan
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