The City of Johannesburg is among 67 municipalities affected by the National Treasury’s decision to temporarily withhold July 2026 equitable share allocations over financial management and governance failures.
The intervention, announced by Treasury on Tuesday, is aimed at strengthening fiscal discipline, improving accountability and compelling municipalities to address unauthorised, irregular, fruitless and wasteful expenditure (UIFWE), while ensuring officials responsible for financial misconduct are held accountable.
Other Gauteng municipalities affected include Emfuleni, Lesedi, Sedibeng District Municipality, Merafong City and Rand West City.
Treasury said the decision followed “persistent and serious non-compliance” with the Municipal Finance Management Act (MFMA) despite years of support through guidance, training and direct engagement with municipalities.
“The decision follows persistent and serious non-compliance with the Municipal Finance Management Act and its supporting regulations, despite support provided by the National Treasury through guidance, engagement, and formal or informal communication,” the department said.
