R1.8 billion in historical expenditure at the City of Johannesburg had already been regularised through governance processes, with a further R6.4 billion before municipal entity boards for consideration.
National Treasury's decision to temporarily withhold grant funding from Johannesburg has put the financial management of South Africa's largest metropolitan economy under the spotlight.
The city contributes almost 16% of South Africa's gross domestic product and about 40% of Gauteng's economy, according to its website. The city's economy is dominated by financial and business services, retail and wholesale trade, community and social services, and manufacturing, making it the country's largest metropolitan contributor to economic output.
National Treasury this week withheld portions of Johannesburg's equitable share allocation after finding the city had failed to comply with provisions of the Municipal Finance Management Act (MFMA).
"Johannesburg is the economic heartland of this country. The challenges we face are real but not insurmountable... What is new is the discipline, transparency and accountability with which we are now confronting them," Executive Mayor Dada Morero said.
