Johannesburg faces funding halt over illegal wage pact
Updated
Updated · Bloomberg · May 6
Johannesburg faces funding halt over illegal wage pact
8 articles · Updated · Bloomberg · May 6
Finance Minister Enoch Godongwana told Mayor Dada Morero the city could lose state funds unless it scraps the 10.3 billion rand ($629 million) deal.
In an April 23 letter, Godongwana said Johannesburg had signed the agreement with the South African Municipal Workers Union illegally and later confirmed sending the warning.
The dispute centres on municipal finances in South Africa's biggest city, with national funding now at risk if the wage agreement is not reversed.
Can Johannesburg's mayor avert fiscal collapse without triggering a crippling city-wide strike?
As Johannesburg teeters on bankruptcy, are South Africa's other major cities next to fall?
Is Johannesburg's R10.3bn wage deal a corrupt pact or an unavoidable historic debt?