Enoch Godongwana to stop money transfer to Johannesburg after unapproved budget
- Johannesburg faces a national funding cutoff over a R10.3 billion wage agreement dispute with municipal workers
- Finance Minister Enoch Godongwana warns Mayor Dada Morero to defend fiscal management within seven days to avoid losing state allocation
- The City's unfunded budget leads to escalating tensions with Treasury amid significant debts to Rand Water and Eskom
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PRETORIA— The City of Johannesburg faces a cutoff of national government funding over an ongoing dispute regarding a R10.3 billion wage agreement with municipal workers. Finance Minister Enoch Godongwana issued an ultimatum to Johannesburg Mayor Dada Morero, giving the metro seven days to defend its fiscal management or lose its state allocation.
According to News24, the National Treasury intends to invoke Section 216(2) of the Constitution. This clause empowers the state to halt conditional and unconditional grants to organs breaching financial controls.
Godongwana demands answers from Morero
The intervention follows the city’s adoption of an unfunded 2025/26 adjustments budget. Godongwana noted that the metro has failed to pay major utilities within the legally required 30 days. As of 31 March 2026, Johannesburg owed R1.2 billion to Rand Water and R3.7 billion to Eskom. Treasury previously ordered the city to scrap its R10.3 billion agreement with the South African Municipal Workers’ Union, calling it unlawfully signed.
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Despite these warnings, the city council passed a R97.1 billion budget in late May with backing from the African National Congress and Economic Freedom Fighters. City Manager Floyd Brink maintained before Parliament’s Standing Committee on Public Accounts that the budget is funded and focused on revenue collection.
Public records indicate that the standoff escalated following a suspension of the city's bonds on the Johannesburg Stock Exchange earlier this year due to delayed audited financial statements. Mayor Morero has seven days to provide reasons directly to the country's National Treasury department.
Parliament Laughs Over Godongwana's Wardrobe Mishap
In a related article, Briefly News reported that during a parliamentary session on 24 March 2026, Finance Minister Enoch Godongwana experienced an embarrassing wardrobe mishap that quickly went viral online. Seated on the front bench while MPs wore military camouflage, the 68-year-old minister was seemingly unaware of the issue until an MP commented on "something hanging out of his pants." The remark sparked jokes and widespread laughter across the chamber. Godongwana remained calm and adjusted himself quietly.
Source: Briefly News
