ActionSA is deeply alarmed by the contents of the letter issued by the Minister of Finance, Enoch Godongwana, to the Executive Mayor of Johannesburg, Cllr Dada Morero, exposing a damning picture of persistent non-compliance with the Municipal Finance Management Act (MFMA) and catastrophic levels of financial mismanagement under the current administration.
According to the letter, the City of Johannesburg incurred a staggering:
- R1.45 billion in unauthorised expenditure,
- R22.2 billion in irregular expenditure, and
- R705 million in fruitless and wasteful expenditure,
as reflected in the 2023/24 audited annual financial statements.
What is even more concerning is that the Auditor-General’s report reveals that this wasteful and irregular expenditure was certified as irrecoverable without proper investigations, as required by law. This is not merely a technical failure; it is a deliberate abdication of fiduciary duty by those entrusted with the public purse.
The Minister’s letter confirms that despite repeated engagements by National Treasury, the City has failed to take any meaningful steps to investigate or recover these funds, nor has it implemented consequence management against the responsible officials and politicians.
ActionSA welcomes the Minister’s directive for an urgent explanation and plan of action from the Mayor. We further welcome the warning that continued failure to act may result in the invocation of Section 216(2) of the Constitution, which empowers the National Treasury to withhold funding to municipalities that fail to comply with financial legislation.
We wish to place on record that ActionSA did not support the 2024/25 adjustment budget in Council and has consistently raised the alarm over the reckless financial decisions and growing unauthorised deviations in procurement and budget implementation.
ActionSA calls for:
- The immediate tabling of a comprehensive UIFWE Remedial Action Plan before Council;
- Forensic investigations into the R24 billion in irregular and wasteful expenditure;
- Full implementation of consequence management, including action against political office bearers who presided over this collapse;
- The tabling of quarterly Muni eMonitor reports in Council to ensure transparency and public oversight.
This crisis of governance proves what ActionSA has warned all along – that the current coalition of convenience has prioritised political expediency over service delivery and ethical leadership. We will not be complicit in the cover-up of corruption and mismanagement.
ActionSA remains committed to restoring ethical governance and financial accountability in Johannesburg. The residents of our City
ActionSA Demands Accountability Over R24 Billion In Irregular And Wasteful Expenditure In CoJ
ActionSA is deeply alarmed by the contents of the letter issued by the Minister of Finance, Enoch Godongwana, to the Executive Mayor of Johannesburg, Cllr Dada Morero, exposing a damning picture of persistent non-compliance with the Municipal Finance Management Act (MFMA) and catastrophic levels of financial mismanagement under the current administration.
According to the letter, the City of Johannesburg incurred a staggering:
as reflected in the 2023/24 audited annual financial statements.
What is even more concerning is that the Auditor-General’s report reveals that this wasteful and irregular expenditure was certified as irrecoverable without proper investigations, as required by law. This is not merely a technical failure; it is a deliberate abdication of fiduciary duty by those entrusted with the public purse.
The Minister’s letter confirms that despite repeated engagements by National Treasury, the City has failed to take any meaningful steps to investigate or recover these funds, nor has it implemented consequence management against the responsible officials and politicians.
ActionSA welcomes the Minister’s directive for an urgent explanation and plan of action from the Mayor. We further welcome the warning that continued failure to act may result in the invocation of Section 216(2) of the Constitution, which empowers the National Treasury to withhold funding to municipalities that fail to comply with financial legislation.
We wish to place on record that ActionSA did not support the 2024/25 adjustment budget in Council and has consistently raised the alarm over the reckless financial decisions and growing unauthorised deviations in procurement and budget implementation.
ActionSA calls for:
This crisis of governance proves what ActionSA has warned all along – that the current coalition of convenience has prioritised political expediency over service delivery and ethical leadership. We will not be complicit in the cover-up of corruption and mismanagement.
ActionSA remains committed to restoring ethical governance and financial accountability in Johannesburg. The residents of our City