Joburg Faces Cash Crunch as Mayor Dada Morero Reveals City Has 12 Days of Reserves

• Joburg Mayor Dada Morero warned the city only has enough funds to sustain operations for the next 12 days
• Morero said the city is awaiting an equitable share transfer from National Treasury, expected next week, to cover critical bills
• The city faces a R2.6 billion Eskom bill and a R960 million payment owed to Rand Water

JOHANNESBURG — City of Johannesburg Mayor Dada Morero has publicly warned that the metro has approximately 12 days of cash reserves remaining, raising urgent questions about the financial health of South Africa's largest city.

Morero made the remarks to eNCA on Thursday while accompanying officials conducting an operation to demolish illegal structures in the Johannesburg CBD.

City awaits National Treasury transfer

The mayor acknowledged the severity of the situation but sought to reassure residents that relief is imminent. He said the city is expecting an equitable share transfer from National Treasury as early as next week, which will be used to settle outstanding accounts with Eskom and Rand Water.

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"Should anything happen, we only have money sufficient finance to support whatever happens for those 12 days," Morero said.

He added that the current shortfall is not unprecedented in government, but conceded the city is required to maintain cash coverage of at least 32 days.

"We are working hard to ensure our collection rate will ensure we have sufficient days for cash coverage but it doesn't mean we have nothing," he said.

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Eskom and Rand Water bills loom large

The bulk of the anticipated Treasury funds will go directly towards settling two critical utility accounts. The city owes Eskom R2.6 billion and Rand Water R960 million. Morero indicated that once those payments are processed, service delivery conditions in the city should begin to stabilise.

DA wants to investigate Dada Morero

Briefly News reported that the Democratic Alliance (DA) Johannesburg Caucus Leader, Belinda Echeozonjoku, requested an urgent investigation into Executive Mayor Dada Morero and MMC Sthembiso Zungu for alleged political interference. She wrote to Gauteng Cooperative Governance and Traditional Affairs MEC Jacob Mamabolo following allegations regarding a multi-billion rand agreement. Echeozonjoku stated on 1 July 2026 that Morero met with South African Municipal Workers' Union (SAMWU) representatives at Luthuli House. She alleged that the Mayor encouraged union members to demand the withdrawal of disciplinary letters issued to senior executives.

Source: Briefly News