Treasury Insists R13.5bn Municipal Freeze Is Corrective but Service Delivery Fears Remain
Treasury said the funds will be released after municipalities submit signed payment plans and make direct payments to pension funds and the Auditor-General.
- National Treasury withheld R13.5 billion in July equitable share transfers from 69 municipalities, citing "persistent and serious non-compliance" with the Municipal Finance Management Act .
- Intergovernmental Relations Deputy Director-General Ogalaletseng Gaarekwe explained that municipalities with unfunded budgets failed to honor prior commitments to improve financial management, necessitating the temporary suspension.
- Sixteen municipalities took money from worker salaries for pension, UIF, and PAYE deductions but failed to pay those funds over; Spokesperson Motalatale Modiba said this practice undermines "workers' rights" and exposes municipalities to legal risk.
- Withheld funds will be released once municipalities submit signed payment plans, starting with a portion to pay pension funds and the auditor-general directly; Gaarekwe noted this could take as little as two weeks.
- Treasury emphasized that municipal councils, not the national department, must hold officials accountable for financial oversight, while assuring service delivery should remain unaffected as municipalities raise most funding from their own revenue.
10 Articles
10 Articles
Treasury insists R13.5bn municipal freeze is corrective but service delivery fears remain
The National Treasury has defended its decision to temporarily withhold R13.5-billion in July equitable share transfers from 69 municipalities, saying the freeze could last as little as one or two weeks if councils submit proper payment plans and proof that they are correcting financial management failures.
South Africa: Treasury Found 16 Municipalities Across the Country Pocketed Workers' Pension Monies
National Treasury found 16 municipalities failed to pay over pension, UIF and PAYE deductions already taken from workers' pay. The finding is one reason Treasury withheld R13.5 billion in July transfers from 69 municipalities nationally.
How South Africa's municipalities lost billions — and why Treasury finally acted
The National Treasury's unprecedented intervention in South Africa's local government financial crisis has led to the withholding of funds from 69 municipalities, revealing serious compliance failures.
Treasury found 16 municipalities across the country pocketed workers' pension monies
By Anita Dangazele National Treasury found 16 municipalities failed to pay over pension, UIF and PAYE deductions already taken from workers’ pay. The finding is one reason Treasury withheld R13.5 billion in July transfers from 69 municipalities nationally. Sixteen municipalities took money out of their workers’ salaries for pension contributions, and did not pay it over to the pension funds it belonged to. The finding came out as part of Natio…
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