Godongwana’s warning highlights financial and governance crisis facing ANC in Joburg

Minister of Finance Enoch Godongwana. Picture: X/GovernmentZA An important meeting between the Minister of Finance Enoch Godongwana and the Mayor of Johannesburg Dada Morero is taking place in Pretoria on Friday. The City of Johannesburg requested the meeting and is expected to explain its poor management of the city’s finances.

At this stage, the metro hasless than R4 billion cash on handleft in the bank, it owes creditors more than R25 billion and has committed to a much criticised R10.3 billion wage deal with the South African Municipal Workers Union (Samwu). Godongwana had written a letter to Morero on 23 April, warning that if the municipality continues on its wayward course, Treasury will withhold the R8 billion due to the City in July. Sawmu, which is an ANC ally through the Congress of South African Trade Unions (Cosatu), has accused Godongwana of colluding with the DA in an election year.

The ANC currently leads the governing coalition in Joburg. However,The Citizenunderstands that Godongwana had sent several letters to the mayor’s office before the latest one, warning the city about several financial issues. The ANC in Johannesburg toldThe Citizenon Friday that they will meet with the mayor and the minister of finance following Friday’s meeting.

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Morero also insists that the city is not in a crisis. Political analyst and research fellow at the University of Free State (UFS) Theo Neethling toldThe Citizenon Friday that despite being an ANC minister, Godongwana had acted in the best interests of the city by writing the scathing letter to Morero. “The growing conflict between Finance Minister Enoch Godongwana – who is steadfast and firm in his pursuit of fiscal discipline – and Johannesburg Mayor Dada Morero highlights the deepening financial and governance crisis facing the ANC in Johannesburg ahead of the elections.

“At the centre of the dispute is a controversial R10.3 billion wage agreement with Samwu, which National Treasury regards as unaffordable and potentially unlawful. “Treasury’s warning that Johannesburg is effectively bankrupt is politically damaging, especially given reports that the city owes more than R25 billion while holding less than R4 billion in cash reserves,” said Neethling. Neethling said the ANC now finds itself trapped between competing political pressures.

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