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Treasury threatens to cut City of Joburg funding | SA News

South African Finance Minister Enoch Godongwana told Johannesburg Mayor Dada Morero that state funding to the city will be halted unless a R10.3 billion ($629-million) wage agreement is scrapped.

The two-year pact with the South African Municipal Workers Union was signed illegally, Godongwana said in a letter dated April 23 seen by Bloomberg. The minister confirmed sending the letter when contacted by text message.

“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…

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