By Anita Dangazele
- National Treasury withheld July funding from 69 municipalities, including Johannesburg, Nelson Mandela Bay and Buffalo City, citing unpaid debts owed.
- Johannesburg promised to pay Eskom R1.4 billion by mid-July, while Nelson Mandela Bay gave no date and Buffalo City says services stay unaffected.
National Treasury has withheld part of July’s equitable share funding from 69 municipalities across South Africa, including Johannesburg, Nelson Mandela Bay and Buffalo City. Treasury said the decision follows years of unpaid debts, mismanaged funds and failures to follow the Municipal Finance Management Act.
In Johannesburg, Mayor Dada Morero rejected claims that the city is in financial crisis. He said Treasury has confirmed the city’s 2026/2027 budget is fully funded, and a recovery plan is already under way.
“This is comforting feedback as it confirms that our financial management is okay and has not reached a crisis point. However, more needs to be done to manage our cash flow and revenue performance,” Morero said.
He said the city will pay Eskom R1.4 billion once the cash comes through, which he said would end Johannesburg’s debt process with Eskom.
“We are convinced that by mid-July, all these payments will be effected. Accountability and transparency sit at the centre of this recovery,” Morero said.
Finance MMC Loyiso Masuku said Johannesburg’s financial problems started in 2016 under previous administrations. Former mayor Herman Mashaba rejected this, saying both the ANC and the DA share the blame for years of poor governance in the city.
Nelson Mandela Bay issued a statement on Wednesday saying the funding freeze is “administrative and corrective in nature” and does not mean the municipality is unable to deliver services.
The statement gave no date for when funds might be released and did not name who is speaking on the municipality’s behalf.
The metro has the highest irregular expenditure record in the country, sitting at R28 billion. Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen said the funding freeze reflects a pattern that keeps damaging service delivery in the metro.
Buffalo City has taken a different approach, telling residents nothing will change.
Spokesperson Luzuko Buko said the municipality is “fully co-operating” with Treasury and remains confident that roads, water and refuse collection will continue without disruption.
Treasury said withheld funds will be released once municipalities show they have addressed irregular spending and improved financial management. It has not given a date for when that could happen.
Pictured above: City of Johannesburg Mayor Dada Morero during a media briefing on Wednesday.
Image source: Dada Morero/Facebook
