WATCH | Joburg will settle Eskom, Rand Water debts by mid-July, says Morero

Joburg mayor Dada Morero says the city has received confirmation from the National Treasury that its 2026/27 budget is fully funded and says its Eskom and Rand Water bills will be paid up by mid-July.

Morero said the city would make a R1.4bn payment to Eskom this month, bringing Joburg back within the terms of its repayment agreement with the power utility.

His remarks came a day after Treasury revealed it had withheld R3.6bn from Johannesburg as part of R13.5bn in July equitable share transfers suspended for 69 municipalities over poor financial governance and failing to comply with the Municipal Finance Management Act (MFMA).

Speaking at the Joburg Theatre, Morero said the Treasury’s interventions had been acknowledged but insisted Johannesburg’s finances had not reached crisis point.

“We have been working with the Treasury, not only through the intergovernmental relations structure but also through the presidential finance working group led by the president and the executive mayor. A few weeks ago, we met the minister of finance and mapped out a process for managing issues of concern,” he said.

“Our working relationship with the Treasury is yielding results. We have received correspondence confirming that the city’s 2026/27 annual budget is funded. This is comforting feedback as it confirms that our financial management is okay and has not reached a crisis state.

“However, more needs to be done to manage our cash flow and revenue performance.”

Morero said the city had already begun implementing corrective measures required by the Treasury, including revising its strategy to reduce unauthorised, irregular, fruitless and wasteful expenditure.

He said Johannesburg had made significant progress in dealing with its historical expenditure backlog.

“At the same council meeting, R918.4m in expenditure was regularised on the recommendation of our municipal public accounts committee following a formal investigation. In parallel, the boards of the Johannesburg Roads Agency, City Parks and Zoo, the Johannesburg Development Agency and Pikitup regularised a further R878.3m among themselves.

“Together, this amounts to approximately R1.8bn resolved through proper governance processes, with a further R6.4bn currently before entity boards for consideration,” he said.

Morero said the city had also identified the main source of new irregular expenditure. “The largest driver this year is City Power’s overspending on bulk electricity purchases, amounting to R2.1bn by the end of the third quarter.”

He added that refuse collection services were also being stabilised after recent disruptions.

“The mayoral committee has resolved to ring-fence funding for fleet maintenance, fuel, landfill operations and other essentials that keep refuse trucks on the road.

“An initial operational allocation is being prioritised to settle the payment backlog with service providers and restore supplier confidence. Operations have resumed,” he said.

Sowetan