The City of Johannesburg has finally released its delayed financial results for the year ended 30 June 2025, revealing severe financial strain and raising fresh concerns about the metro’s long-term sustainability.
According to the Auditor-General’s office, there is “substantial doubt” about the City’s ability to continue operating as a going concern. The findings paint a bleak picture of the metro’s financial health following months of uncertainty over its delayed reporting.
The release of the statements comes after the Johannesburg Stock Exchange (JSE) suspended the City’s bonds from trading at the end of March due to its failure to publish audited annual financial statements on time.
City Of Johannesburg Debt Crisis Raises Fresh Financial Concerns
On Thursday evening, shortly before markets closed, the City confirmed that the audited documents were now publicly available. The financial statements reveal extensive debt pressures and mounting operational losses.
The report shows that the City’s debt exceeds its revenue by 45%, effectively placing the metro in a financially distressed position.
Among the major concerns highlighted in the report is the write-off of R9.5 billion. The findings also indicate that reasonable steps were not taken to prevent irregular expenditure amounting to R2.3 billion, while unauthorised expenditure of the same value was also recorded.
Auditor-General Flags Billions Lost Through Water And Electricity Losses
The financial results further show significant losses linked to municipal services. Electricity losses totalled R5.6 billion, while water losses reached R2.8 billion during the financial year under review.
The report also notes ongoing issues surrounding governance and accountability within the metro administration.
Of the 678 cases of alleged irregularity identified, around 60% were still being finalised by the close of the financial year.
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The Times Post learned that the findings are likely to intensify scrutiny over financial controls and management within South Africa’s largest metro.
