National Treasury to unfreeze funds to municipalities
Treasury will release equitable share payments to 28 municipalities by month-end, while 20 have already been paid in full and 21 partially.
- The National Treasury will unfreeze equitable share transfers to local municipalities by July 31, but Minister of Finance Enoch Godongwana warned non-compliant entities are "not off the hook."
- Earlier this month, Treasury froze R13.5-billion to 69 municipalities to "instil fiscal discipline" due to "persistent and serious non-compliance with the Municipal Finance Management Act."
- Of the 69 municipalities affected, 20 have received their full equitable share, 21 received partial funding, and 28 will receive their allocation by month's end.
- The South African Municipal Workers' Union condemned the freeze as "reckless and irrational," yet Godongwana and Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa stated transfers remain "conditional" on addressing non-compliance.
- Hlabisa noted non-compliant municipalities will be monitored "closely" to protect services, while Godongwana emphasized that fixing municipalities requires electing "competent councillors" in upcoming elections.
11 Articles
11 Articles
BizNews Edge: Treasury pays 69 errant municipalities anyway, SARB rate hold is punishing the Rand
Treasury switched off the taps to 69 municipalities for doing nothing about corruption and mismanagement. Today it switched them back on anyway, days before its own deadline. Alec Hogg asks the obvious question nobody in government wants to answer. Plus: why last week's Reserve Bank rate hold is already punishing the rand, a foundation funded by an arms dealer just published a survey putting China ahead of America in young Africans' eyes, and on…
SAMWU criticises Treasury's decision on municipal funding and salary delays
The South African Municipal Workers’ Union criticises the National Treasury's recent funding withdrawal, which has left many municipalities struggling to pay salaries and maintain essential services.
South Africa: Media Statement - Committees Welcome Equitable Share Release and Continued Municipal Compliance Measures
Press Release - The joint oversight committees of Parliament that recently considered National Treasury's withholding of equitable share transfers to selected municipalities on Tuesday welcomed the announcement that the remaining R7.1 billion in withheld July equitable share transfers will be released to 49 municipalities on 31 July 2026.
bizcommunity.com
National Treasury to unfreeze funds to municipalities
The National Treasury will unfreeze equitable share transfers to a number of local municipalities by Friday, 31 July 2026, but Minister of Finance Enoch Godongwana has warned that non-compliant municipalities are “not off the hook”.
National Treasury lifts municipal funding freeze with R7.1 billion release
Finance Minister Enoch Godongwana has conditionally lifted the municipal funding freeze, announcing the release of R7.1 billion to 49 struggling local councils on 31 July 2026. Speaking at a media briefing on Tuesday, Godongwana confirmed the move aims to shield poor households from service delivery collapse, despite the municipalities’ continued failure to address rampant financial mismanagement. In early July, National Treasury enacted a drast…
Municipalities demand a political decision: "It must not come to the Ice Age between the state and the municipalities." Stuttgart/Neckar-Odenwald-Kreis. After the impression has finally strengthened that the country wants to put the financial talks with the municipalities literally on ice, the presidents of the three local state associations addressed themselves in writing to Prime Minister Cem Özdemir and asked him to make the municipal financi…
Coverage Details
Bias Distribution
- 72% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
