South Africa\u2019s National Treasury will stage a three-year intervention to stabilise the Johannesburg municipality, which has been beset by governance and financial challenges, Finance Minister Enoch Godongwana said.\u00a0<\/p>\n\n\n\n
Implementation of the plan will continue through the 4 November municipal elections, even if a new administration takes control of the city, Godongwana said at an event to mark the announcement of the Development Bank of Southern Africa\u2019s financial results. \u00a0<\/p>\n\n\n\n
\u201cAny government that comes out of Johannesburg will need our support, so we\u2019ll be there for the next three years,\u201d he said. <\/p>\n\n\n\n
\u201cWe\u2019re working together with the DBSA and all the other relevant institutions to give effect\u201d to the turnaround plan, he said.\u00a0<\/p>\n\n\n\n
Johannesburg is South Africa\u2019s biggest city, accounting for about 15% of the country\u2019s economic output, but years of political instability and mismanagement have left it unable to pay its bills or provide reliable basic services. <\/p>\n\n\n\n
The city is currently run by a coalition led by the ANC, the largest political party, but some opinion polls suggest the balance of power could shift after the vote. \u00a0<\/p>\n\n\n\n
The Treasury\u2019s intervention follows other failed efforts by the national government to get the city\u2019s finances back on track. <\/p>\n\n\n\n
Meanwhile, the DBSA said profit rose 47% to R7.8 billion in the year through March. Municipal credit risk remains elevated due to financial mismanagement, poor audit outcomes, vandalism of infrastructure, poor service delivery, and budgetary constraints, the lender said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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