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Johannesburg\u2019s member of the mayoral committee for Transport, Kenny Kunene, has broken ranks amid heightened concerns over the city\u2019s finances, warning that critical service delivery across the metro is under immense strain \u201cdue to systemic liquidity challenges\u201d.<\/p>\n
He says the ongoing fiscal pressures impacting the City of Johannesburg (CoJ) have escalated into an unprecedented operational emergency, resulting in the suspension of refuelling services for the Johannesburg Roads Agency (JRA) fleet.<\/p>\n
It\u2019s understood that the indefinite suspension took effect on 15 June 2026.<\/p>\n
Read:
Eskom warns of power cuts to \u2018defaulting\u2019 City of Johannesburg
Crisis committee plan for Eskom\u2019s municipal debt \u2018stalled\u2019<\/p>\n
\u201cBecause the JRA fleet cannot operate, field teams are effectively grounded,\u201d Kunene said in a statement on Tuesday.<\/p>\n
\u201cThis directly compromises the City of Johannesburg\u2019s ability to execute routine and emergency road infrastructure maintenance across the city\u2019s network.\u201d<\/p>\n
The suspension of operations includes, but is not limited to, pothole repairs, traffic signal maintenance, emergency stormwater and road clearing, as well as bridge and infrastructure inspections.<\/p>\n
\u201cThe financial and liquidity challenges facing the City of Johannesburg has moved from balancing books to the daily reality on our streets,\u201d Kunene added.<\/p>\n
Kunene has called on the city\u2019s finance department and executive leadership, including Mayor Dada Morero, to find an immediate resolution to the metro\u2019s financial crisis.<\/p>\n
The remarks come as the Joburg city council is expected to sit on 24 and 25 June to table interventions to reduce unauthorised, irregular, fruitless and wasteful expenditure. The plan is likely to be a make-or-break for the city\u2019s July equitable share allocation from National Treasury.<\/p>\n
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Revenue crunch<\/p>\n
Part of what has contributed to the CoJ\u2019s financial distress is a revenue crunch caused by under-collection at some of its entities, including the electricity distributor City Power.<\/p>\n
The utility has, in turn, struggled to keep up with its financial obligations to supplier Eskom.<\/p>\n
Read: Joburg street lights switched off over electricity debt<\/p>\n
As of 11 June 2026, the city owes Eskom a historic debt of more than R5.2 billion (comprising R2.7 billion on the current account and a R2.5 billion balance from a court-enforced settlement arrangement).<\/p>\n
Despite interventions by Electricity and Energy Minister Kgosientsho Ramokgopa, the city\u2019s failure to meet its debt obligations to Eskom has led the state-owned power utility to reinstate the Promotion of Administrative Justice Act (Paja) process.<\/p>\n
The Paja notice, first issued in May, opens the process to public consultation before Eskom can proceed with potential power interruptions or disconnections across the metro.<\/p>\n
Read\/listen:
Solving Johannesburg\u2019s debt crisis is critical for both Eskom and CoJ
Joburg not absolved from its obligations to pay Eskom \u2013 Ramokgopa<\/p>\n
In addition to the suspension of road maintenance, this means Joburg residents and businesses have also not escaped Eskom\u2019s threats of power cuts in the city.<\/p>\n
Already under close scrutiny<\/p>\n
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While Morero has repeatedly denied that the city is near insolvent, National Treasury is said to be sceptical of its reassurances that finances are being brought under control, and is closely scrutinising the municipality\u2019s accounts.<\/p>\n
A senior source inside the country\u2019s fiscal policy engine room has told Moneyweb that Treasury officials are reviewing the city\u2019s finances with a fine-tooth comb amid ongoing concerns about financial mismanagement and poor governance.<\/p>\n
Read: Treasury threatens to cut City of Joburg funding<\/p>\n
Earlier this year, Treasury put CoJ on terms over an \u201cunaffordable\u201d wage agreement with the South African Municipal Workers\u2019 Union (Samwu), worth a hefty R10.3 billion over two years.<\/p>\n
This was compounded by earlier warnings about Morero\u2019s alleged failure to prevent, investigate, or even attempt to recover billions in wasted money through unauthorised, irregular, fruitless and wasteful expenditure.<\/p>\n
While Joburg recently presented what it claims is a funded budget to the city council, some at Treasury say they are yet to see a funding plan.<\/p>\n
Technical discussions are ongoing between Treasury and the city\u2019s finance officials.<\/p>\n
\u201cThere are ongoing engagements between Treasury officials and City of Joburg finance officials in relation to whether or not their budget is funded, the underlying assumptions around the wage deal, the collection rates, whether their projections are realistic and whether the collection rate is even achievable. There are a lot of concerns around that,\u201d the closely placed source said.<\/p>\n
Read:
Joburg\u2019s R97bn budget: Higher tariffs amid intensified revenue drive
CoJ finances \u2018a horror show\u2019 \u2013 Scopa member<\/p>\n
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As part of efforts to clean up the city\u2019s finances, Finance Minister Enoch Godongwana threatened to slash the metro\u2019s funding further if it failed to withdraw from the politically facilitated agreement with Samwu.<\/p>\n
But the city put itself back on the collision course with Treasury when Morero announced he would push ahead with the deal to manage a fallout with municipal workers.<\/p>\n
\u201cThey have been given conditionalities; they\u2019ve been given a warning to meet certain milestones. If they meet the milestones, then the funding won\u2019t be withheld, but if they fail to do so, then Treasury has a right to proceed [with the threats to pull funding],\u201d the source added.<\/p>\n
Read: CoJ defends R10bn wage deal despite National Treasury\u2019s ire<\/p>\n
\u201cUnless they can produce a funding plan, within their baseline, that shows the budget is funded and that they can afford this [the wage agreement] then they have an unfunded budget.\u201d<\/p>\n
\u201cThe consequences of not having a proper budget can go all the way to administration and nothing is off the table,\u201d the source also warned.<\/p>\n
A \u201cfunded budget\u201d under the Municipal Finance Management Act is a municipal budget in which realistically anticipated revenues fully cover projected expenditure.<\/p>\n
The upcoming council meeting is also expected to give Treasury a signal on its next move.<\/p>\n
Moneyweb has contacted the city for comment, and this story will be updated once we receive a response. However, more details are expected to be revealed following the council meeting.<\/p>\n
#Pothole #signal #repairs #halted #CoJ #liquidity #concerns #mount<\/p>\n","protected":false},"excerpt":{"rendered":"
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