The City of Johannesburg is grappling with a severe cash crisis, despite claims by Mayor Dada Morero that financial management is stable.The city is paying suppliers late, leading to suspended infrastructure projects and service disruptions.Key projects like the Hurst Hill 2 reservoir and Eikenhof substation upgrades are delayed due to nonpayment, exacerbating water and power shortages.

Johannesburg Water and City Power face significant losses from infrastructure decay and theft, with debts owed to Eskom and Rand Water exceeding R6bn.The National Treasury’s equitable share grant of R3.5bn will fund payments, but the city lacks sufficient cash reserves.

Critics, including JoburgCAN’s Julia Fish and governance expert Prof Alex van den Heever, argue that the crisis stems from systemic failures, poor budgeting, and lack of accountability.

The auditor-general has raised concerns about governance and service delivery, while the Treasury threatens to withhold funds if reforms are not implemented.Without urgent action, the city risks further economic and social instability.