National Treasury has defended its decision to temporarily withhold R13.5 billion in July equitable share transfers from 69 municipalities, saying the move complies with constitutional and legislative requirements.
The response follows concerns raised by the Financial and Fiscal Commission (FFC), which questioned the lawfulness of the decision to suspend the funding over poor financial management.
Treasury maintains that the measure is aimed at enforcing financial accountability and ensuring municipalities meet their obligations.
Speaking on the matter, Deputy Director-General in the National Treasury’s Office of the General Counsel, Empie van Schoor said the department had acted within the framework of the law.
“National Treasury has complied with the constitutional and legislative prescripts governing the temporary withholding of funds. While conditional grants may be withheld by the executive, such decisions remain subject to Parliament’s approval,” Van Schoor said.
The temporary suspension forms part of Treasury’s efforts to address persistent financial mismanagement and improve governance at municipalities across the country.
Photo: @Treasury_RSA/X
