Pretoria: City of Johannesburg City of Johannesburg (CoJ) Mayor Dada Morero has assured city residents that the municipality is working with National Treasury to resolve its challenges. This follows the withholding of July 2026 equitable share transfers for Johannesburg and 68 other municipalities by National Treasury as part of efforts to enforce fiscal discipline and address financial misconduct.

According to South African Government News Agency, the municipality has been actively engaging with various governmental structures to tackle the issues. Mayor Morero highlighted that they have been working through the Intergovernmental Relations structure and the Presidential Finance Working Group, which is led by the President and the Executive Mayor. He mentioned a recent meeting with the Minister of Finance where they outlined a process to manage the city's concerns.

Morero acknowledged the decision by Treasury to withhold the equitable share but assured that the city would comply with the process and provide necessary clarifications. He noted that their collaboration with National Treasury has been productive, citing correspondence confirming that Johannesburg's 2026/27 Annual Budget is funded. Despite this positive feedback, Morero emphasized the need for improved cash flow management and revenue performance, with accountability and transparency being crucial to the city's recovery.

To address the challenges, Mayor Morero announced several measures, including ensuring funds for Randwater and Eskom by mid-July, revising the city's Unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFWE) reduction strategy, and regularizing significant amounts in expenditures following investigations. He also highlighted the identification of major expenditure drivers, such as City Power's overspending on bulk electricity purchases.

Furthermore, the city is prioritizing operational allocations to address payment backlogs and restore supplier confidence, as well as modernizing billing and revenue systems. Morero stressed that service delivery remains a priority, with recovered funds directed toward essential services like water, electricity, waste, and public safety. He also mentioned responsible borrowing for infrastructure renewal, including securing funding for City Power and Johannesburg Water capital projects.