Johannesburg Executive Mayor Dada Morero has strongly refuted allegations circulating on social media that R4 billion has vanished from Joburg Water’s bank account. In a detailed statement released over the weekend, Morero assured residents that no funds have been lost and emphasized that the City of Johannesburg operates under a fully transparent and compliant financial system.
The mayor’s comments come in response to a wave of online speculation suggesting financial mismanagement within the city’s utility entities—claims which Morero categorically dismissed as based on a misunderstanding of established financial practices within the municipality.
“There has been no loss of funds. Johannesburg runs a sound financial system that ensures proper oversight and accountability,” Morero stated.
Morero Clarifies Treasury Practice Behind Alleged ‘Missing Funds’
According to Morero and the City of Johannesburg, the confusion appears to stem from the city’s use of a treasury management mechanism known as “sweeping”, a global best practice in public sector finance. The system, which is part of the city’s long-standing iGoli 2002 delivery model, allows the municipality to centralize the banking of all its entities under the Group Treasury structure.
This means that all balances from municipal entities—such as Joburg Water, City Power, and others—are automatically transferred into the City’s primary account at predetermined intervals.
“This is not an irregular or hidden transaction. It’s a standard financial process that enhances liquidity, reduces banking fees, and improves investment opportunities for the city,” said Morero.
Far from being an indicator of impropriety, the sweeping process is intended to maximize financial efficiency across all departments and entities while keeping city finances fully auditable and traceable.
Morero reiterated that all funds remain in the control of the City of Johannesburg and that every cent is accounted for and audited regularly through both internal and external mechanisms. He pointed out that claims about R4 billion “going missing” are baseless and have the potential to erode public trust unnecessarily.
“Spreading misinformation like this not only misleads residents but also undermines our ability to focus on the real work of delivering services,” the mayor warned.
The City of Johannesburg emphasized that no municipal entity operates in isolation financially. Instead, the group treasury system ensures centralized oversight, improved cash flow management, and coordinated budgeting, all of which contribute to maintaining the financial health of the city.
The sweeping system is not unique to Johannesburg. Many municipalities and government departments around the world use similar structures to pool funds into a single account. This model allows them to access capital when needed, eliminate idle balances, and reduce borrowing costs.
Experts in public finance note that centralized banking structures also help prevent waste and ensure that financial resources are always directed where they’re most needed.
“This is a globally recognized treasury function. It allows cities to be more agile and responsive,” said a financial analyst familiar with municipal finance systems.
With fake news and financial misinformation becoming increasingly common on social media, Morero encouraged Johannesburg residents to rely only on official communication channels for accurate updates on the city’s finances.
“We appeal to the public not to fall for misleading information shared without context or understanding. Any financial queries can be addressed through our official platforms,” Morero said.
The City also emphasized its commitment to transparent communication, noting that financial statements, audit reports, and budget documents are publicly accessible through the city’s website and other official outlets.
As Johannesburg continues to deal with challenges in service delivery and infrastructure development, Morero stressed the importance of maintaining public confidence in the city’s institutions.
“We cannot allow unfounded rumours to derail the progress we are making. Our financial systems are not only sound, but they are designed to serve the residents of this city with accountability,” he added.
In recent months, the city has taken several steps to improve its financial resilience, including digitalizing procurement processes, tightening oversight of entity expenditures, and investing in smart infrastructure to reduce costs.
As speculation about missing billions continues to circulate online, Mayor Dada Morero remains firm in his message: no funds have been lost. The City of Johannesburg’s financial model is well-structured, transparent, and fully compliant with legal and regulatory standards.
Residents are encouraged to approach the city with any financial concerns and to report the spread of fake news that could undermine stability and service delivery in the metro.
Source- EWN
