Gauteng Cogta MEC Jacob Mamabolo has confirmed that the City of Johannesburg, despite facing serious financial and governance issues, will not be placed under administration.

The metro, which accounts for roughly 16% of South Africa’s GDP and employs 12% of the national workforce, struggles with revenue shortfalls, an overexpenditure of R3.9bn, and an infrastructure backlog exceeding R200bn.It also owes Eskom over R5bn.

While its finances are strained and service delivery has been impacted, Mamabolo emphasised that the city is working diligently to improve revenue collection and address operational challenges.

The MEC highlighted the role of President Ramaphosa’s presidential working group, which coordinates national and provincial support to stabilise Joburg.Mamabolo defended the R10.3bn wage agreement with municipal workers, urging cooperation between labour and management to boost revenue collection.

He stressed that better wages do not necessarily mean poorer service delivery and encouraged partnerships with workers to improve municipal accounts, meter reading, and overall revenue.

The city is not bankrupt but faces severe financial pressures that require careful management and collaboration with national and provincial authorities to restore stability.