Cogta MEC Reverend Thulasizwe Buthelezi said the action by the National Treasury should serve as a wake-up call for the political and administrative leadership of the affected KZN municipalities.
National Treasury's decision to temporarily suspend the July equitable share transfers to 69 municipalities could lead to a serious disruption to service delivery operations and payment of staff salaries.
This comes as the South African Local Government Association (SALGA) said the funding freeze, if prolonged, could push the municipalities into debt with Eskom and water boards. Seven municipalities in KwaZulu-Natal have had their equitable share funding withheld by the National Treasury. The municipalities impacted include iMpendle, uMzinyathi District Municipality, Newcastle, eMadlangeni, Amajuba District Municipality, AbaQulusi in Vryheid, and uMkhanyakude District Municipality. The municipalities form part of 69 financially non-compliant municipalities across the country.
National Treasury stated that action had been taken to ensure that public money is properly managed and that municipal officials and office-bearers are held accountable where required by law. The iMpendle Local Municipality said in a statement it has noted the recent media statement issued by Treasury regarding the withholding of funds.
