Enoch Godongwana has ordered the mayor of Joburg to stop the implementation of a budget-busting pay deal, warning it could impact the national economy.
In the second letter in less than a year, Finance Minister Enoch Godongwana has warned Johannesburg Mayor Dada Morero that the city's budget is underfunded and it is in serious financial trouble. He has also directed the mayor to explain how he intends to finance the massive wage settlement with city workers and ordered implementation to be halted.
Godongwana's letter shows creditors are owed R25.2 billion, up from R17 billion at the end of the 2022/23 financial year.
“The city’s cash and cash equivalents in 2024/25 are insufficient to repay R25.2-billion to R3.9-billion creditors,” Godongwana said in the letter dated April 24, 2026.
“This is a sign of serious financial distress, indicating that the city does not have the liquidity it needs to pay its creditors,” Godongwana wrote.
The finance minister said the city's wage agreement with the SA Municipal Workers Union (Samvu), which promised R10.3 billion over two years to end the wage dispute, was incomplete. Morero signed the agreement with Samvu to stop the attacks before the G20 summit. The DA has taken the salary settlement to court.
Samvu did not immediately respond to requests for comment on Wednesday.
Godongwana has asked Morero…