Misused public fundsOversight & ethics enforcement

South Africa's Finance Minister threatened to withhold Johannesburg's July funding over a R10.3 billion municipal wage deal he called illegal and unaffordable; Treasury later released the July payments

Confidence: Corroborated · 3 sourcesJohannesburg · Oct 12, 2026

Subject of this story

Dada Morero, Executive Mayor of Johannesburg

City of Johannesburg

Also named

Oversight

Enoch Godongwana, Minister of Finance, South Africa

What happened

In a letter to Johannesburg Executive Mayor Dada Morero dated 23 April 2026, Finance Minister Enoch Godongwana said the R10.3 billion wage agreement with the South African Municipal Workers' Union was illegally signed, ordered that its implementation be halted, and asked how the city was funding it. He gave formal notice that National Treasury would invoke section 216(2) of the Constitution against the July 2026 equitable-share instalment (about R8 billion), noting the city owes creditors R25.2 billion against R3.9 billion in cash. The city initially said it would go ahead with the deal. In late July 2026 Treasury released July's equitable-share payments to non-compliant municipalities, citing service delivery, while Godongwana warned December payments would be withheld if financial management did not improve; Johannesburg had already received part of its share to pay Eskom and Rand Water. Whether the wage deal was scrapped or deferred is not established in the sources reviewed.

By the numbers (1)

● confirmed by a primary document · ○ reported

Figures

○

Finance Minister Enoch Godongwana asked the City of Johannesburg to explain how it is funding a R10.3 billion wage deal and ordered its implementation halted.10.3B ZAR

Enoch Godongwana

1 source

Eyewitness News — Finance Minister instructs City of Joburg to pull wage deal or lose fundingGodongwana asked the City to explain how it is funding a R10.3 billion wage deal and ordered its implementation halted.

Sources (3)

MoneywebFinance Minister Enoch Godongwana issued the City of Johannesburg a final notice of intent to invoke Section 216 of the Constitution over the unfunded R10.3 billion wage agreement, warning he would stop transfers to the metro.

Eyewitness NewsGodongwana asked the City to explain how it is funding a R10.3 billion wage deal and ordered its implementation halted.

allAfricaTreasury released July's municipal equitable share payments even though some municipalities were non-compliant; December payments would be withheld absent improvement.

Response

Dada Morero

No response by publication

Contacted — no response by publication.

City of Johannesburg

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Not yet contacted for this story.

What happened next (0)

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