By Lehlohonolo Lehana.
City of Johannesburg mayor Dada Morero confirmed he had submitted a comprehensive financial recovery plan to the National Treasury after he was given 14 days to account for the financial mismanagement in the metro.
This comes after Auditor-General, Tsakani Maluleke, flagged serious governance failures, including poor financial controls, weak revenue collection and chronic underinvestment.
The National Treasury has cautioned that failure to resolve the crisis could result in the withholding of national grants.
Morero received the letter from finance minister Enoch Godongwana on July 30, 2025, outlining his concern over the city’s ongoing non-compliance with the Municipal Finance Management Act (MFMA), specifically relating to unauthorised and irregular expenditure.
Morero briefed the media in Johannesburg on Thursday.
“Our city has endured a period of mismanagement and poor leadership from previous administrations, in particular during the DA-led coalition. The R23.6 billion in unauthorised, irregular, and fruitless expenditure is a cumulative figure that has progressively increased in the city’s financial statements over the years.
“During this time, these expenditures were largely unaddressed and not regularised as required by the MFMA.”
Morero, who is an ANC councillor, is currently leading a coalition local government in the country’s economic hub.
Morero has served as mayor since August 2022, and the Democratic Alliance-led coalition, governed the city between 2016 and 2021.
The R23.6 billion comprises R13 billion (55%) in unauthorised expenditure, R9.9 billion in irregular expenditure, and R735 million (3%) in fruitless and wasteful expenditure.
Most of the unauthorised expenditure is due to bulk purchases of electricity and water that exceeded the approved budget.
“The irregular expenditure is mainly due to the city acquiring goods and services without fully complying with supply chain regulations,” he added.
In response, the mayor has established a disciplinary board to probe allegations of financial misconduct in the city.
The board will focus on timely investigations, consequence management, and regularising non-compliant expenditure.
He also said the city also established a “War Room” and introduced a “Bomb Squad” to oversee financial recovery and monitor service delivery progress weekly. These interventions, he claimed, are beginning to show results.
Morero claimed there were improvements in revenue collection through the War Room initiative, with the city achieving an 87% collection rate between April and June 2025 – a 2.7% increase from the same period last year.