The ANC in Johannesburg has responded to Finance Minister Enoch Godongwana’s letter to mayor Dada Morero, informing the city to scrap the R10.3 billion wage agreement or risk losing funding.
In a letter dated 23 April 2026, Godongwana said the two-year deal with the South African Municipal Workers Union (Samwu) was signed illegally.
Treasury raises concern over legality of deal and city’s finances
The city struck the controversial Politically Facilitated Agreement (PFA) with Samwu in March, committing to paying workers the R10 billion over the next three years.
“You are hereby directed to stop proceeding with the implementation of this illegally signed agreement that has the potential to destroy the sustainability of the City of Johannesburg,” Godongwana wrote.
“Secondly… you very well know this city can’t afford this agreement,” the minister continued.
Godongwana referred to the city’s financial standing, noting that it owed creditors R25.2 billion for the 2024/25 period, a figure that increased from R17 billion in 2022/23.
He wrote that the city’s cash and cash equivalents of R3.9 billion in 2024/25 were not enough to repay outstanding creditors.
“This is a marker of severe financial distress, indicating that the city does not have the liquidity required to pay its creditors,” the minister added.
Godongwana said the metro would lose its funding should it fail to act accordingly.
“In the event that the city fails to remedy this situation with immediate effect, National Treasury will invoke section 216(2) of the constitution, targeting your July 2026 equitable share instalment,” he said.
ANC calls for urgent engagement
In a statement issued by the ANC’s greater Joburg region on Wednesday, the party’s regional secretary, Sasabona Manganye, said they submitted an official request to the minister for an urgent meeting.
Manganye said the concerns the minister raised needed direct engagement between the minister and the city’s leadership.
“The people of Johannesburg deserve solutions, not escalation,” he said.
“The ANC Greater Joburg Region further places on record the significant efforts that have been made by the city’s administration to stabilise municipal finances, improve revenue collection, and address inherited governance challenges,” Manganye added.
In a memorandum handed in on Wednesday, the region requested that the meeting address four specific areas:
- The clarification of the minister’s correspondence and its implications for the PFA;
- An open discussion of the financial position and challenges facing the city;
- The exploration of sustainable solutions that safeguard uninterrupted service delivery; and
- The strengthening of intergovernmental coordination in addressing the city’s fiscal constraints.
Manganye called on Godongwana to “respond favourably and urgently” to the party’s request.
Workers’ interests ‘remain a priority’
Addressing the city’s employees, the regional secretary said the party would engage Godongwana to ensure that their rights and interests are protected and advanced.
“The struggle for salary parity within the City of Johannesburg Metropolitan Municipality, as championed by the South African Municipal Workers’ Union, remains a priority of the African National Congress,” he said.
“We reaffirm our unwavering commitment to stand with workers in their pursuit of fairness, equity, and dignity, and we will continue to champion their interests through all available political and governance platforms.”
Presidency acknowledges governance concerns
Earlier on Wednesday, presidential spokesperson Vincent Magwenya said President Cyril Ramaphosa was aware of the issues the metro is facing and Godongwana’s letter.
He said the substance of the letter was partly the reason why the president set up the presidential Johannesburg working group.
“It was not just a case of concerns around poor service delivery and other areas; it was also recognition that there may very well be areas where there are governance failures and there may very well be areas that impact the financial stability of the Johannesburg metro,” Magwenya said during a media briefing in Cape Town.
