Overview
- National Treasury, in a late‑April letter, said Johannesburg is in severe financial distress and told the mayor to stop an unfunded R10.3 billion wage agreement.
- The minister warned he may withhold the city’s July equitable‑share payment of more than R8 billion if the city does not fix the budget.
- Treasury cited an unfunded March adjustment budget, weak revenue collection, and R3.9 billion in overspending by January that worsened cash flow.
- Mayor Dada Morero rejected claims that the city is bankrupt and said he would meet the finance minister and the Auditor‑General to respond.
- SAMWU and Cosatu said the wage pact is binding and the ANC’s Joburg region sought urgent talks, while Moody’s review, a JSE bond suspension, and a rejected AFD loan signalled rising risk to services if suppliers go unpaid.