Johannesburg Metro Sinks Deeper Into Financial Quagmire

The Freedom Front Plus (VF Plus) could not support the City of Johannesburg’s proposed 2026/27 budget as it fails to address the Metro’s critical financial crisis, allowing it to sink even deeper into a financial quagmire.

The budget was tabled against the backdrop of a severe financial crisis: ongoing disputes with Eskom, a scathing letter of warning from the Minister of Finance regarding the Metro’s financial distress and the JSE suspending the trading of Johannesburg’s debt instruments.

Despite all this, the R97 billion budget relies on a meagre surplus of just over R2 billion — an amount that falls far short of addressing the Metro’s enormous debt obligations, arrears to creditors and infrastructure backlogs exceeding R220 billion. The capital budget amounts to only R8,7 billion.

The proposed budget does not bode well for the Metro, as the capital allocation to the Johannesburg Roads Agency was slashed by 37,7% to a mere R570 million and the allocation to City Power was increased by 114% to R2,353 billion. This will largely be funded through a new German bank loan.

Meanwhile, residents are hit with an 11% increase in sanitation tariffs — the highest in the country — even though the Metro’s six wastewater treatment plants are in a deplorable state and approximately 90 million litres of raw sewage spill into Johannesburg’s rivers daily.

This budget does not represent a road to recovery, but rather a recipe for disaster and further decay. It demonstrates a general lack of political will to stabilise the Metro’s finances, combat corruption and restore basic service delivery.

Time is running out – Johannesburg has to be saved from utter ruin.

On 4 November, residents have a golden opportunity to bring about change by voting for the Freedom Front Plus and electing a responsible administration.

Freedom Front Plus Youth Empowerment: The party focuses on empowering youth through education and job creation.

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