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National Treasury’s decision to withhold equitable share payments to the City of Johannesburg is yet another indicator that highlights the compounding financial crisis that the city is plunged in.

ActionSA is gravely concerned by this development, as suspending Treasury grants will have severe effect on service delivery and infrastructure projects.

According to Treasury, the City is one of 69 failing municipalities in Gauteng, the Free State, Eastern Cape and Limpopo Provinces that are failing to exercise fiscal discipline and basic governance practices.

Treasury cites its decision to persistent and serious non-compliance with the Municipal Finance Management Act and its supporting regulations, despite the support it has provided to the City.

ActionSA has consistently pointed to the chronically-failed ANC coalition government that is sponsored by the Democratic Alliance. Our position is that residents should not bear the brunt of poor fiscal discipline, binding them to a growing debt burden on their futures.

Residents should demand answers from this government, as to why its leaders are committed to unsustainable debt that has no positive effect on improving service delivery.

More of the same failure to deliver basic services will persist, with the Democratic Alliance supporting the ANC in Council decisions that will not improve the living standards of residents.

What is concerning is that COJ received a R3.8 billion loan from Germany’s KfW Development Bank earlier this year. In May 2026, Finance Minister Godongwana threatened to withdraw funds to the City over the R10-billion wage agreement with unions, that it regards as illegal.

Residents should ask this government, along with its coalition partners, why it is committed to binding public funds to debt, instead of urgently arresting it’s the City’s accelerating decline.

Now more than ever, residents deserve leaders who will present a credible recovery plan for Joburg and ensure that the interests of residents are prioritised without reservation.

ActionSA takes this opportunity to remind residents to use their democratic right on the 4 November 2026 to vote for ActionSA.

Press Statement by: Herman Mashaba - ActionSA President