National Treasury decision to withhold R13.5bn from municipalities 'should not be seen in isolation'

Chairperson of the Portfolio Committee on Cooperative Governance and Traditional Affairs, Dr Zweli Mkhize.

The Portfolio Committee on Cooperative Governance and Traditional Affairs Chairperson, Dr Zweli Mkhize, said that the decision by the National Treasury to withhold R13.5 billion in equitable share transfers from 69 defaulting municipalities should not be seen in isolation, as it coincides with issues their oversight work has uncovered.

Mkhize was speaking to the media as part of a briefing by Parliament’s governance cluster oversight committees on Thursday.

Mkhize touched on the 2024/25 national audit outcomes and joint collaborative oversight of municipalities’ financial and governance challenges.

He said the committee “welcomes and appreciates the intent” behind the Treasury's decision to withhold equitable share transfers from municipalities that failed to comply with financial regulations and other financial management prescriptions.