FINANCE Minister Enoch Godongwana has issued a damning letter warning that the City of Joburg is in a deepening financial crisis.
National Treasury has raised the alarm over deteriorating governance, ongoing non-compliance with the Municipal Finance Management Act (MFA), severe liquidity pressures, and rising creditor obligations that threaten Mzansi's economic powerhouse.
In a direct intervention, Godongwana has ordered the city to immediately halt implementation of a salary agreement linked to the Politically Facilitated Agreement.
He warned that Joburg simply can't afford the commitment in its current dire financial state.
ActionSA: We Warned You
ActionSA in Gauteng has been raising red flags about the city's finances for months.
The party said Treasury's letter confirms their worst fears.
It had consistently warned that while workers' concerns were legitimate, any wage commitments had to be lawful, properly authorised, and financially sustainable.
ActionSA said its position has always been clear: workers must be protected, but false promises that endanger both employees and the city can't be defended.
The party detailed extensive efforts to address the crisis, including structured engagements with organised labour, SALGBC, the MEC for CoGTA, and direct communication with the workers.
"Our concerns were never anti-worker. They were grounded in governance, sustainability, and accountability," said ActionSA Gauteng leader Funzi Ngobeni.
He criticised what he called "political opportunism" by others.
Provincial Government Under Fire
Ngobeni took aim at the Gauteng MEC for CoGTA, who recently told the Provincial Legislature that "the matter is resolved".
With National Treasury now sounding alarms about severe financial distress and possible MFMA transgressions, that claim appears increasingly hollow.
Joburg residents are already bearing the consequences.
They face collapsing infrastructure, unreliable service delivery, mounting governance failures, and declining confidence in the city's financial management.
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DA Promises Explosive Revelations
DA Joburg Mayoral Candidate Helen Zille announced she'll host an urgent press conference on Wednesday, 6 May 2026 to address what she describes as "explosive" contents of the Godongwana's letter.
The DA has promised to reveal serious questions about the stability of the city's finances and warns of severe consequences for residents.
Crisis Point
ActionSA has called on the city, Gauteng provincial government, and all stakeholders to act urgently in a transparent, lawful, and financially responsible manner.
They want to stabilise Joburg and protect both residents and workers from further harm.
The central question remains: how did Africa's wealthiest metro reach such a precarious financial position, and who'll be held accountable?
