The National Treasury says its decision to temporarily withhold July equitable share allocations to 69 municipalities is intended to compel local governments to address persistent financial management failures while protecting public funds.
Treasury says it has been engaging with the affected municipalities since January to improve compliance with key financial management requirements. However, many municipalities have failed to meet their obligations despite ongoing engagements.
According to the department, the continued non-compliance has raised serious concerns about governance, financial accountability, and municipalities’ ability to deliver essential services to residents.
The temporary withholding of the July equitable share allocations forms part of Treasury’s efforts to enforce sound financial management and ensure that public funds are managed responsibly. The department says municipalities are expected to take the necessary corrective measures to restore compliance and strengthen their financial governance.
Political economist Professor Bonke Dumisa spoke to VOC News about the issue.
Photo: @GovernmentZA/X
