ActionSA Raises Alarm Over Joburg’s Financial Collapse Under ANC Rule

Following ActionSA’s recent call for accountability over the staggering R24 billion in irregular and wasteful expenditure revealed by the Minister of Finance, our service delivery-orientated party escalated its intervention this week.

ActionSA President Herman Mashaba met directly with Executive Mayor Dada Morero and senior ANC leadership when it came to light that Cllr Margaret Arnolds was earmarked for the position of MMC for Finance, despite lacking any financial qualifications. Mashaba raised urgent concerns about the catastrophic state of Johannesburg’s finances and the continued appointment of incompetent officials to key portfolios.

This high-level engagement follows the Minister’s letter confirming Johannesburg’s:

  • R1.45 billion in unauthorised expenditure
  • R22.2 billion in irregular expenditure
  • R705 million in fruitless and wasteful expenditure

Yet, despite this damning indictment, the ANC-led coalition continues to deny, delay, and deflect.

A City in a financial Freefall: No Accountability, No Leadership. Just lip service to pacify residents with more promises.

Johannesburg is sliding into financial ruin. The Mayor has failed to submit timeous financial reports under Sections 52 and 71 of the MFMA, obstructing oversight and hiding the true state of the City’s finances. The City’s cash coverage ratio has collapsed to 17 days, service providers are not being paid and major infrastructure projects are grinding to a halt.

Entities such as City Power, Joburg Water and the JRA are operating on overdrafts while residents suffer tariff increases and unfair prepaid surcharges. Instead of stabilising finances, the Mayor continues to appoint loyalists over competent professionals and distracts the public with initiatives like the so-called “Bomb Squad” – an unaccountable body with no legal mandate.

ActionSA Demands Urgent Action to restore the City’s financial weel-being, and as such ,as a follow-up to our 2 August 2025 statement, ActionSA reiterates its calls and demands that:

  • A qualified and independent MMC for Finance be appointed immediately.
  • A forensic audit be launched into all capital expenditure and Regulation 36 deviations.
  • The transfer of second-hand buses—valued at R60 million—to a shadowy company will be halted pending investigation.
  • The institutional review of Johannesburg’s governance model is fast-tracked and time bound.
  • Council oversight mechanisms be strengthened through mandatory tabling of deviation and performance reports.

Mashaba’s engagement with the Mayor and ANC leadership marks a turning point. The ANC can no longer claim ignorance or hide behind administrative red tape. ActionSA has placed the facts before them – now they must act in the best interests of residents or be held complicit in the looting of Johannesburg.

Mayor Morero’s failure to act decisively in the face of financial chaos proves what ActionSA has long warned: political patronage has taken precedence over ethical governance; self-enrichment over services to residents. Johannesburg is far from a playground for cadre deployment that the ANC-led government has turned it to be – it is the economic engine of South Africa, and it deserves ethical, competent and accountable leadership.

ActionSA will continue to expose, challenge and disrupt every attempt to loot this City. Our fight is for the residents of Johannesburg – who deserve service delivery – not slogans; action – not empty promises crudely bandaged in rhetoric.

Residents of our City deserve better.

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