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ActionSA notes with deep concern the threat by the Minister of Finance, Enoch Godongwana, to halt the transfer of funds to the City of Johannesburg and to invoke Section 216(2) of the Constitution.

This self-inflicted wound must be blamed squarely on the incompetence and uncaring administration led by ANC Mayor Dada Morero.

The City receives grants from National Treasury to fund service delivery and infrastructure. The Minister has made several attempts to get the mayor to resolve the financial impasse, which included the unfunded adjustment budget and debts of R1.2 billion to Rand Water and R3.7 billion to Eskom.

Mayor Morero has disregarded every warning that has highlighted the dire financial situation of the City. He further exacerbated the matter by imposing a R10.3 billion wage increase deal as a campaign tool for November’s local government election.

ActionSA voted against the adjustment budget, which necessitated the steps now being considered by the Minister, for precisely this reason. We warned Mayor Morero and his executive about the dangers of approving an unfunded budget without credible and tangible plans to address the City's deteriorating financial position.

ActionSA has consistently called for a budget that reflects the lived realities of Johannesburg residents. We have repeatedly cautioned this ANC-led administration against flouting the provisions of the MFMA. National Treasury grants are a critical lifeline for service delivery and infrastructure investment, and any suspension of these transfers would have severe consequences for residents. It would inevitably force the City to divert funds intended for service delivery to meet its growing financial obligations.

ActionSA therefore demands full accountability from Mayor Morero and his executive for placing Johannesburg on the brink of a financial crisis. Residents have been subjected to a wholly avoidable, man-made disaster because the ANC has failed to hold its own leadership accountable for repeated governance failures.

Mayor Morero has demonstrated that he is not fit to lead this great city. On 4 November, Johannesburg residents will have an opportunity to remove him and the ANC from office. They will also have the opportunity to elect Herman Mashaba, whose administration demonstrated that Johannesburg can be governed responsibly, and to begin restoring the City after years of ANC mismanagement and decline.

Issued by ActionSA: MMC For Finance Candidate and Member of Parliament Mpumi Edward and Alan Beesley MP