Earlier today the Democratic Alliance lawyers formally wrote to the City demanding urgent answers regarding the politically facilitated agreement with SAMWU that commits the City to an unfunded R10 billion obligation until 2027.
English soundbite by Cllr Belinda Kayser-Echeozonjoku
Although the agreement was presented to Council, it was explicitly stated as being subject to the availability of funds – funds the City does not have, and which were never allocated in any approved budget. Yet, SAMWU appears to have been led to believe that the City had fully committed to this massive financial undertaking.
This contradiction raises serious concerns about whether the executive knowingly created false expectations, misleading both Council and SAMWU, and placing the City at severe financial risk.
The DA is deeply alarmed that the Mayor would advance such a significant commitment while Johannesburg continues to face collapsing services, widespread power and water outages, failing infrastructure, and a fiscal environment that is already under immense pressure.
The DA’s attorneys have put forward urgent, critical questions:
- Why was a deal presented as “subject to funds” now being treated as a firm financial commitment?
- Who communicated to SAMWU that the City had R10 billion available when this was patently untrue?
- Why did the Mayor fail to disclose the City’s inability to fund the agreement up to 2027?
- Did the Mayor or officials mislead SAMWU to avoid labour unrest ahead of G20.
If these actions were intentional, the City may have engaged in conduct that violates the MFMA and the principles of honest, transparent governance.
The DA demands:
- The immediate public release of the agreement, all letters, and all communication with SAMWU;
- A forensic investigation into the Mayor and all officials involved in the negotiations; and
- A guarantee that no further unfunded or conditional commitments are being made without proper disclosure.
Residents deserve leadership that is honest about the City’s financial reality not one that makes billion-rand promises it cannot afford and never budgeted for.
The DA will continue to protect the financial integrity of Johannesburg and hold this administration accountable.