The National Treasury has revealed that 42 of the 69 municipalities whose July equitable share transfers were initially withheld have now had their funding reinstated
Image: GCIS / IOL Graphics
The National Treasury has revealed that 42 of the 69 municipalities whose July equitable share transfers were initially withheld have now had their funding reinstated.
IOL previously reported that Treasury had temporarily withheld the July 2026 equitable share transfers to 69 municipalities to enforce fiscal discipline, address financial mismanagement and strengthen accountability among municipal officials and office-bearers.
“National Treasury is in the process of temporarily withholding the July 2026 equitable share transfers to selected municipalities to instil fiscal discipline and ensure that public money is properly managed; that unauthorised, irregular, fruitless and wasteful expenditure (UIFWE) is addressed; and that municipal officials and office-bearers are held accountable where required by law,” Treasury said at the time.
The decision followed persistent non-compliance with the Municipal Finance Management Act (MFMA) and its regulations, despite repeated support, guidance and engagements with the affected municipalities.
The affected municipalities span all nine provinces. The Treasury said municipalities had been given sufficient written notice and an opportunity to provide reasons why their funds should not be withheld.
During a joint meeting with Parliament’s portfolio committees, Treasury provided an update on the intervention, confirming that 42 municipalities had met the requirements for their funding to be reinstated.
"Already 42 of the 69 municipalities have complied with the requirements and had their equitable share transfers reinstated, demonstrating the positive impact of the Minister’s intervention," Treasury Director-General Duncan Pieterse said.
He added that the move formed part of broader local government reforms aimed at improving municipal service delivery and financial management.
"This is just one of a suite of far-reaching local government reforms which the government has embarked on to support a sustainable turnaround in municipal service delivery and financial management."
IOL Business