WeeklySA_AdminWOES: Mounting debt, collapsing infrastructure and political instability have pushed South Africa’s richest city to seek national intervention ahead of what promises to be a fiercely contested municipal election…
By Monique Vanek, S’thembile Cele and WSAM Reporters
The City of Johannesburg has approached the National Treasury for assistance as worsening financial pressures and declining service delivery raise concerns about the future governance of South Africa’s economic hub.
Finance Minister Enoch Godongwana confirmed that discussions are underway with city officials to explore possible remedies for Johannesburg’s mounting financial crisis. Speaking in an interview on yesterday, Godongwana warned that the city’s inability to provide basic services had become a serious national concern.
“The fact that officials can’t provide any basic services at the moment, whether it’s water or anything else, must be a red flag,” Godongwana said.
He added that national government could not remain passive in the face of the city’s decline.
“National government cannot remain a spectator. What form intervention will take is a matter of detail, but we have no option but to go to Johannesburg,” he said.
Among the options being considered is placing Johannesburg under administration, although Godongwana cautioned that such a move might not necessarily resolve the city’s structural problems. Any intervention would require a legal mechanism under existing legislation.
The engagement with Treasury follows a warning issued last year in which Godongwana cautioned Mayor Dada Morero that key national grants could be withheld if the city failed to address financial mismanagement and governance weaknesses.
Johannesburg’s fiscal crisis has unfolded against a backdrop of political instability that has persisted since 2016, when the African National Congress lost its outright majority in the city council. Since then, shifting coalition governments and frequent leadership changes have made consistent policy implementation difficult. The ANC currently leads a fragile coalition administration.
The deteriorating financial position of the municipality has increasingly translated into visible service delivery failures across the city.
Residents in many parts of Johannesburg have endured prolonged water shortages, sometimes lasting weeks, as ageing infrastructure and poor maintenance take their toll. Burst pipes and leaking reservoirs have become common occurrences, while water tanker deliveries have become a regular feature in some neighbourhoods.
Electricity supply has also become unreliable in many areas, with repeated equipment failures at City Power substations causing extended outages beyond Eskom’s scheduled load shedding. Businesses and households alike have complained about delays in repairs and a shortage of technical capacity within municipal entities.
Road infrastructure has deteriorated sharply, with potholes and damaged surfaces affecting both residential streets and major transport routes. In many areas, broken traffic lights have added to congestion and safety concerns.
Waste collection services have also faced repeated disruptions, leading to illegal dumping and growing public health concerns in several communities.
One of the most visible signs of the city’s decline has been the growing crisis at Johannesburg Water. Infrastructure failures, maintenance backlogs and insufficient investment have strained the system, contributing to recurring water outages. The situation has been compounded by high levels of non-revenue water caused by leaks, vandalism and illegal connections.
Financially, the city has struggled with declining revenue collection and rising debt levels. Non-payment by residents and businesses has reduced cash flow, while escalating operational costs and ageing infrastructure have increased expenditure pressures.
Municipal entities have also faced governance challenges, including allegations of irregular procurement and weak financial oversight. Auditor-General reports in recent years have highlighted concerns about internal controls and financial management practices.
Infrastructure vandalism and cable theft have further strained the city’s resources, forcing repeated repairs and diverting funds from long-term development projects.
The financial crisis has heightened the political stakes ahead of municipal elections expected within the next year.
The Democratic Alliance has nominated former Western Cape Premier Helen Zille as its mayoral candidate, while ActionSA has put forward former Johannesburg mayor Herman Mashaba. The contest is expected to be one of the most closely fought in the city’s history.
Analysts say the election could determine whether Johannesburg stabilises its finances or continues on its current trajectory of decline.
Business groups have repeatedly warned that Johannesburg’s deterioration threatens the broader national economy, given the city’s role as the country’s financial and commercial centre.
For now, Treasury’s discussions with city officials may determine whether Johannesburg receives a financial lifeline — or faces deeper intervention from the national government.
With infrastructure failures mounting and public frustration growing, the outcome of those talks could shape the future of South Africa’s largest metropolitan economy. – Fullview
MIRROR Briefs
O’SULLIVAN FACES THE HEAT
Forensic investigator Paul O’Sullivan abruptly left Parliament Ad Hoc Committee proceedings to catch a flight shortly before his evidence concluded on Thursday.
O’Sullivan was back at the Parliament to continue giving evidence before the committee investigating allegations of police corruption.
In a dramatic conclusion , the forensic investigator walked out of the committee before concluding answering questions from the evidence leaders.
O’Sullivan had indicated that he had to leave at 1pm to fly back to Johannesburg, but the questions went on for a bit longer. O’Sullivan then stormed out of the meeting, angering MPs.
MPs, including the MK Party’s David Skosana and EFF leader Julius Malema, attempted to block his departure. Skosana went as far as physically standing in front of the door to prevent O’Sullivan from leaving.
“We will open a case,” Skosana declared. “This man must not be allowed to leave this country.”
O’Sullivan remained defiant despite the threats of legal action. “I came here of my own free will and I am leaving,” he told the committee as he was exiting.
The walkout sparked outrage among committee members. The Evidence leader, Soviet Lekganyane, concluded the session by saying the committee would seek legal advice to determine the next steps.- Lehlohonolo Lehana
DIRECTOR LINKED TO R113M FRAUD
Public Works and Infrastructure Minister Dean Macpherson has instructed Director-General, Sifiso Mdakane, to implement precautionary suspension and disciplinary proceedings against a senior Construction Project Management (CPM) Director.
The director appeared in court this week on charges of fraud in relation to a multimillion-rand project linked to the Mpumalanga Department of Education.
The Minister acted after learning that the official had been arrested, alongside others, for allegedly defrauding the Mpumalanga Department of Education of R113 million through a tender established between 2018 and 2019 as an emergency intervention to repair 21 schools in the province.
While the Department of Public Works and Infrastructure (DPWI) was not involved in the tender issued by the Mpumalanga Department of Education, the Minister stressed that all officials within the department must be beyond reproach.
Macpherson said the precautionary suspension and disciplinary action must be in line with the prescripts of the Public Service Act and regulatory framework, and be both procedurally and substantively fair.
“… We have adopted a zero-tolerance approach to corruption and ethical misconduct within this department. That position is non-negotiable. Upon becoming aware of the official’s arrest and court appearance, I directed the Director-General to implement the precautionary suspension of the official and to initiate the appropriate disciplinary action’’. – SAnews.
SA MEN DIE IN RUSSIAN WAR
The Department of International Relations and Corporation (DIRCO) has confirmed that two South Africans who were recruited to fight in the Russia-Ukraine war, have died.
Ronald Lamola, DIRCO minister made the announcement during a media briefing in Durban. He said they were not linked to the 17 men belonging to the MK Party, but another group. It was part of another recruitment drive or another scheme that took them there.
“There are other South Africans that we have since discovered were part of the process and we have since discovered that some have also died,” Lamola said. The Ministry was deeply concerned by the “suspicious circumstances” and predatory recruitment tactics used to lure citizens into danger.
“If a job offer abroad sounds too good to be true, it probably is,” the Minister cautioned.
South Africans have been urged to exercise extreme due diligence when pursuing international employment, particularly those involving “security,” “logistics,” or “technical support” in high-risk regions.
The minister said the government’s immediate focus was now on facilitating their return to South Africa, where legal processes would follow.
He has formally met with the families of the deceased men. – Lehlohonolo Lehana.
COUNCIL APPOINTS WOMAN TO TOP POST
The African National Congress (ANC) regional chair and Member of Mayoral Committee (MMC) of finance Loyiso Masuku has been elected deputy executive mayor of Johannesburg.
Masuku was elected unopposed during a council meeting this week. Her election means that the Johannesburg’s mayor and deputy mayor are both from the ANC.
The deputy mayor position was formed to appease a faction of the ANC that wanted Morero to be removed as mayor. This comes after he lost his position as the regional chairperson of the ANC in Johannesburg at a conference last year.
Masuku’s previous role as MMC for Finance has been dissolved and absorbed into the new office, consolidating fiscal and executive authority.
Now, as Deputy Mayor, she will support Morero in running the metro, sharing tasks like upgrading roads, improving public transport, and creating jobs in the city.
This appointment also comes at a time when women were breaking barriers in South African politics. Masuku’s role could inspire more female leaders to step up, showing that hard work and dedication can lead to top positions. – Lehlohonolo Lehana.
