National Treasury says the plan to get Joburg's finances back on track 'is solid, providing a credible foundation for the city's financial recovery.'
The City of Johannesburg hosted Finance Minister Enoch Godongwana on Tuesday, July 21 for high-level emergency talks in a desperate bid to unlock its frozen equity grant, as the metro faces a severe liquidity crunch and has barely two weeks of cash reserves left.
The meeting concluded with an agreement on practical interventions to strengthen the city's financial position and accelerate service delivery. According to a joint media statement issued by the Mayor's Office and National Treasury on Tuesday, both sides agreed on a set of immediate stabilization steps, with Treasury reaffirming that the “Joburg Plan” provides a credible foundation for the metro's financial recovery.
The city did not respond to requests for specific clarifications of the interventions by the time of publication.
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Tuesday's meeting follows a similar high-level engagement between Godongwana and Morero in May this year, when the Treasury first formally raised legal concerns Regarding Metro's unfunded adjustment budget, increasing debt and non-compliance with the Municipal Finance Management Act.
Morero, along with members of the Mayoral Committee and senior officials, presented what he described as an honest assessment of the city's progress, ongoing challenges and ongoing work through the Inner City Rejuvenation Program and infrastructure…