The City of Johannesburg and National Treasury reached agreement on Tuesday on immediate steps to stabilise the metro’s finances and unlock a withheld grant. The plan aims to address liquidity shortfalls before a parliamentary deadline on Friday.
Finance Minister Enoch Godongwana met City of Johannesburg Mayor Dada Morero and officials on 21 July to discuss the withheld R3.6-billion equitable share allocation. The metro faces a liquidity shortfall with about two weeks of cash reserves left.
Both sides issued a joint statement confirming agreement on practical interventions. National Treasury described the Joburg Plan as solid and a credible foundation for financial recovery. Morero said the City remains focused on building a financially resilient Johannesburg.
Earlier in July the Gauteng provincial government invoked Section 154 of the Constitution to oversee the City’s finances for five months. Parliament’s oversight committees have directed Treasury to report by Friday on how to protect service delivery while addressing compliance issues under the Municipal Finance Management Act.