Date: 14 August 2025
The African National Congress (ANC) in Johannesburg notes with concern the financial challenges highlighted by the Minister of Finance regarding the City of Johannesburg’s non-compliance with the Municipal Finance Management Act (MFMA).
Key Issues Raised
On 30 July 2025, the Minister of Finance flagged serious concerns regarding the City’s failure to prevent and address unauthorised, irregular, fruitless, and wasteful expenditure (UIFWe).
According to the 2023/24 financial statements, a staggering R23.6 billion was reported under UIFWe, broken down as follows:
- R13 billion (55%) – Unauthorised expenditure
- R9.9 billion (42%) – Irregular expenditure
- R735 million (3%) – Fruitless & wasteful expenditure
The main contributing factors were bulk electricity and water purchases exceeding budget allocations, as well as supply chain non-compliance.
Leadership Response
City of Johannesburg Executive Mayor, Cllr. Dada Morero, reaffirmed the City’s commitment to financial recovery, accountability, and improved service delivery. We acknowledge these challenges and are putting in place stronger governance mechanisms to ensure transparency and accountability, while prioritising service delivery for the people of Johannesburg, he stated.
Building Better Communities
The ANC remains committed to building better communities together, ensuring that residents benefit from improved financial discipline, effective governance, and responsive service delivery.
As we mark the 113th Anniversary of the African National Congress, we reaffirm our pledge to work tirelessly towards a better life for all.