JOHANNESBURG - Finance Minister Enoch Godongwana described his meeting with Johannesburg Mayor Dada Morero as productive.
It comes after a letter from Godongwana to Morero was leaked to the media.
It painted a picture of a city mired in debt and flouting financial regulations.
READ: The cost of financial dysfunction in City of Joburg
In the letter, Godongwana suggested that a wage agreement signed by Morero for R10.2 billion was illegal because it's unfunded, meaning there's no indication of where the money will come from.
Treasury said it has a constitutional duty to exercise oversight over the financial affairs of municipalities and is obligated to act where it observes a material risk to their finances.
Treasury said Morero agreed that he and his officials must go back and consider some serious remedial actions that will address the issues it has raised.