JCA Demands Transparency on Treasury's Joburg Intervention

Transparency Before Transfers

The Joburg Crisis Alliance has cautiously  welcomed National Treasury's decision to withhold part of Johannesburg's Equitable Share allocation but warns that the process lacks transparency. Residents have a right to know what commitments the City has made, what conditions Treasury has imposed, and how recovery will be monitored.

STATEMENT SUMMARY

Transparency Is Non-Negotiable in Joburg's Financial Recovery

The Joburg Crisis Alliance (JCA) has cautiously welcomed National Treasury's decision to withhold a portion of the City of Johannesburg's Equitable Share allocation, describing it as an important step towards enforcing financial discipline in local government. The Alliance has consistently warned that the City's worsening financial position, driven by unrealistic revenue projections and unfunded budgets, has undermined service delivery, accelerated infrastructure decay, and weakened public confidence. The JCA previously urged National Treasury not to approve Johannesburg's unfunded budget, arguing that municipalities must be held accountable for complying with legal requirements governing public finances.

While supporting Treasury's intervention, the JCA has expressed deep concern over the secrecy surrounding negotiations between National Treasury and the City. Residents remain unaware of the City's representations, the commitments it has made, or the conditions Treasury has imposed before releasing the withheld funds. The Alliance argues that decisions of this magnitude cannot be made behind closed doors when they directly affect every resident and business in Johannesburg.

The JCA is calling on both National Treasury and the City of Johannesburg to immediately publish all correspondence, submissions, recovery commitments and assessment criteria relating to the Equitable Share process. According to the Alliance, transparency is fundamental to accountable government and is essential if public trust is to be restored.

The Alliance will also seek a formal meeting with National Treasury to discuss Johannesburg's financial crisis, the conditions attached to the Equitable Share allocation, and the reforms required to place the City on a sustainable financial footing. The JCA maintains that Johannesburg's recovery requires openness, accountability and meaningful public oversight, rather than confidential negotiations that exclude the residents whose future is at stake.