"R24 Billion Vanishes in Johannesburg: ActionSA Demands Answers for City's Financial Meltdown"

"R24 Billion Vanishes in Johannesburg: ActionSA Demands Answers for City's Financial Meltdown"

 Insight Jozi News:

Noko Mabofa Maleka

August 5, 2025

The City of Johannesburg is once again at the centre of a financial storm — and this time, it’s not just whispers of maladministration, but a glaring R24 billion black hole in public funds that has ActionSA calling for immediate accountability.

In a fiery press statement released by ActionSA's Johannesburg MPAC Whip, Lebo Modukanene, the party has sounded the alarm on what it describes as “catastrophic levels of financial mismanagement” under the current administration led by Executive Mayor Dada Morero. This follows a damning letter from the Minister of Finance, Enoch Godongwana, to Mayor Morero, exposing blatant violations of the Municipal Finance Management Act (MFMA) and a complete breakdown in ethical governance.

According to the minister's correspondence, the City’s 2023/24 audited financial statements reveal

R1.45 billion in unauthorised expenditure,

R22.2 billion in irregular expenditure, and

R705 million in fruitless and wasteful expenditure.

To add insult to injury, the Auditor-General found that these expenditures were written off without the legally required investigations — effectively giving those responsible a free pass.

"This is not merely a technical failure; it is a deliberate abdication of fiduciary duty by those entrusted with the public purse," Modukanene said.

Despite numerous interventions and warnings from National Treasury, the City has allegedly failed to act decisively. No credible forensic investigations have been launched. No officials or politicians have been held to account. And no meaningful steps have been taken to recover the billions lost.

ActionSA has now drawn a clear line in the sand, calling for:

The immediate presentation of a comprehensive UIFWE Remedial Action Plan before Council;

Forensic investigations into the R24 billion in irregular and wasteful expenditure;

Firm consequence management, targeting both officials and political office bearers responsible for this mismanagement;

The quarterly tabling of Muni eMonitor reports to restore transparency and reintroduce public oversight.

The party did not support the 2024/25 adjustment budget, citing growing concern over the City's financial recklessness and mounting unauthorised procurement deviations. “This crisis of governance proves what ActionSA has warned all along – that the current coalition of convenience has prioritised political expediency over service delivery and ethical leadership,” Modukanene said.

The consequences could be dire. Should the City fail to act, Minister Godongwana has signaled that Section 216(2) of the Constitution could be invoked — allowing National Treasury to withhold funding from the City.

ActionSA maintains it will not be complicit in what it sees as a cover-up of corruption. The party has reaffirmed its commitment to “restoring ethical governance and financial accountability in Johannesburg.”

The residents of Johannesburg, battered by potholes, power outages, and failing infrastructure, now face a bigger question: Can they afford more leaders who can’t account for billions?