Johannesburg Mayor Dada Morero has strongly defended the City of Johannesburg’s R97 billion budget for the 2026 financial year, assuring Parliament that the spending plan has received the necessary approval from the National Treasury. His comments come amid criticism from some political parties who have questioned whether the budget is adequately funded and financially sustainable.
Addressing concerns raised during a parliamentary engagement, Morero dismissed suggestions that the city had tabled an unfunded budget. He stressed that municipal officials would never have presented such a significant financial plan to council without first obtaining confirmation and assessment from the National Treasury.
The mayor and senior city executives appeared before Parliament’s Standing Committee on Public Accounts (SCOPA) on Tuesday, where they faced extensive questioning regarding Johannesburg’s finances, governance challenges, and plans to improve service delivery. The engagement formed part of Parliament’s oversight role as lawmakers sought assurances that the city is taking meaningful steps to address its financial and operational difficulties.
Morero used the opportunity to reassure Members of Parliament (MPs) that the city is making steady progress in its efforts to stabilize finances and improve municipal performance. He emphasized that recent concerns raised by stakeholders and government officials have been addressed through ongoing discussions with Treasury and other relevant authorities.
Morero Confident in National Treasury Support
Morero reiterated that the National Treasury had thoroughly assessed the city’s budget before it was tabled. According to him, Treasury’s evaluation process provided the city with confidence that its financial plans are aligned with regulatory requirements and fiscal expectations.
The mayor explained that oversight of municipal finances ultimately falls under the responsibility of the national finance minister and the National Treasury. As a result, any concerns regarding the city’s fiscal position were scrutinized during the assessment process.
“So, we would not have tabled this budget unless National Treasury had confirmed the assessment. The assessment was done, and we can now confirm,” Morero said.
His remarks were aimed at countering claims from opposition parties that Johannesburg’s budget lacks sufficient funding to support planned projects and operational commitments. Morero maintained that the city’s financial strategy has been developed responsibly and with the necessary guidance from national authorities.
The issue of Johannesburg’s finances has been under intense scrutiny in recent months following warnings from Finance Minister Enoch Godongwana. The minister indicated that the municipality’s equitable share allocation could be withheld if the city failed to address governance and financial management concerns.
However, Morero expressed confidence that such a scenario would not materialize. He believes the city has taken the required steps to address Treasury’s concerns and is committed to maintaining compliance with financial regulations and oversight requirements.
The mayor’s assurance is significant because the equitable share forms a crucial component of municipal funding. Any interruption in these transfers could place additional strain on service delivery programmes and infrastructure projects across Johannesburg.
Another issue raised during discussions with Parliament involved the city’s R10 billion municipal wage agreement. Questions have been raised about how Johannesburg plans to meet its obligations under the agreement while balancing other spending priorities.
Morero told MPs that city officials have already engaged with Treasury regarding the wage deal and its long-term affordability. He emphasized that the municipality remains committed to honouring the agreement while ensuring that spending remains within available financial resources.
“There is no way that the city will not pay, or the city will choose not to honour that agreement. The city will honour it at its own pace and on the basis of availability of budget,” Morero explained.
His comments suggest that while the city recognizes its obligations to employees, it will implement payments in a manner that protects overall financial stability. The approach reflects the municipality’s efforts to balance labour commitments with broader service delivery responsibilities.
Morero also addressed reports alleging that senior city executives receive excessive salaries. He rejected these claims, arguing that public perceptions about executive remuneration are inaccurate.
According to the mayor, city manager Floyd Brink is actually earning less than what the position would typically command considering its responsibilities and level of accountability. Morero’s defense of the city manager formed part of a broader effort to counter criticism directed at Johannesburg’s leadership team.
As Johannesburg continues its efforts to improve governance and financial management, Morero remains adamant that the city is on the right path. His appearance before SCOPA was intended to demonstrate transparency and provide lawmakers with confidence that municipal leaders are taking the necessary steps to restore stability and strengthen service delivery.
With National Treasury’s assessment completed and the city standing by its financial plans, Morero believes Johannesburg is well-positioned to implement its 2026 budget while meeting its commitments to residents, employees, and stakeholders.
Source- EWN