Johannesburg, the country’s financial and economic hub, has moved to reassure investors that it remains on a good financial footing and that its dispute with the auditor-general over audited financial statements has no bearing on its ability to meet financial obligations.
This after the JSE last month warned it would suspend the bonds of the Joburg, Ekurhuleni and Cape Town metros if they failed to submit audited financial statements by end-February.
The metros laid the blame at the auditor-general (AGSA), saying the delays in filing their 2024/25 financials were due to disputes lodged with the Chapter 9 institution.
Ekurhuleni is widely regarded as the country’s industrial hub and Johannesburg as its financial centre while Cape Town is often cited as one of South Africa’s best-run metros. Suspending their bonds would undermine their appeal as investment destinations.
Andre Visser, director: issuer regulation at the JSE, said: “In terms of the debt and specialist securities listings requirements, if a municipality does not publish its financial results within eight months of its financial year-end, its listing may be subject to suspension.
“In this regard the JSE published a Sens announcement on February 2 2026. These issuers have not published their financial results and the JSE is accordingly engaging with the issuers, as required in terms of the debt and specialist securities listings requirements, for the JSE to make a decision.”
Joburg metro spokesperson Nthatisi Modingoane said: “The audit process with AGSA is at an advanced stage and the auditor-general has not yet finalised the audit. The city is actively engaging with the auditor-general to conclude the audit process.”
Modingoane said the metro remains financially operational and stable. “Service delivery, debt obligations and capital projects continue uninterrupted. The city remains committed to transparency, good governance and compliance with all regulatory requirements,” he said.
“The city recognises the importance of maintaining investor confidence and upholding its obligations in the capital markets. Johannesburg remains South Africa’s financial hub, with a 2025/26 budget of R89.4bn and a demonstrated track record of financial management improvements.
“The current matter relates to audit finalisation timelines and not to the city’s ability to meet its financial commitments. The city will provide further updates once the audit report has been finalised.”
Bondholders would be jittery if kept in the dark with no access to the books of municipalities owing them money, he said.
President Cyril Ramaphosa this week acknowledged the dire financial distress of many municipalities driven by weak revenue collection, poor management and substantial service delivery backlogs.
“Many municipalities are not spending appropriately. For several years, water and electricity revenue has not been invested in infrastructure maintenance or expansion but has been redirected to cover other municipal costs,“ the president said in his weekly newsletter.
“Local government finances have to be placed on a more sustainable footing to support the delivery of basic services. Over the medium term, R19.2bn will be reallocated to the reform of electricity, water, sanitation and solid waste trading services in metros. These allocations will be linked to performance against clear targets.”
Siseko Mbandezi, finance MMC of Cape Town, which adopted a budget of R76.4bn for 2025/26, said the auditor-general is yet to provide the metro with feedback on the audit. “The city does not control the timelines and process. The city appreciates the positive working relationship with the auditor-general and the spirit in which these routine engagements occur annually.”
Phakamile Mbengashe, spokesperson of Ekurhuleni, which has a budget of R65.5bn for 2025/26, said: “Financial statements were submitted to AGSA at the end of August 2025. The annual report, together with the audit report, should be tabled at the next scheduled council meeting [on Thursday].”
The auditor-general has been contacted for comment, which will be added once received.
Update: March 3 2026
This article has been updated with comment from the JSE.
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