Johannesburg Mayor Dada Morero asked to explain R24.4bn of wasted funds. Image: The Star
(The Post News)- Johannesburg’s mayor Dada Morero is given 14 days to explain how the city will recover R24.4 billion of funds, misused in wasteful expenditure.
According to a letter dated 30 July, Minister of Finance Enoch Godongwana stated that the city may lose part of the funding it receives from the central government if Morero doesn’t comply with the request.
The DA said Johannesburg is facing “the gravest financial threat in its democratic history,” siting that “if Treasury pulls back or suspends these funds, as the minister warns in his letter, the city’s ability to deliver the little basic services it is currently able to deliver will collapse entirely.”
A senior researcher at Johannesburg’s Public Affairs Research Institute, Tracy Ledger said, “The city has been exceptionally badly run, losing finances will hit Johannesburg harder. “ She continued to add that the city is not “spending the money where it is required. Against that standard, the city has failed.”
Godongwana’s letter did not specify when were the funds wasted but mentioned that more than R3 billion related to last year 31 March 2024. “Losses resulting from irregular expenditure were certified by council as irrecoverable, without having conducted an investigation to determine the recoverability,” stated Godongwana.
Morero’s office was not available to answer phone calls or text messages regarding his comment.
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