Leaked letter reveals Joburg owes creditors R25.2 billion with only R3.9 billion cash, prompting National Treasury threat to withhold funds.
DA Joburg mayoral candidate Helen Zille claims Finance Minister Enoch Godongwana has effectively declared the city bankrupt.
Zille said in a letter to mayor Dada Morero, from Gondongwana and dated 23 April, which was leaked to the DA, the minister said the city owes its creditors R25.2 billion, while only having cash and cash equivalents in hand of R3.9 billion.
Joburg owes R25.2 billion but holds R3.9 billion cash – Gondongwana letter
This means the city does not have the money to pay R21.3 billion owed to its creditors.
“This is the core reason behind the city’s…