Impendle Municipality, which is one of the poorest municipalities in KwaZulu-Natal, is worried by the National Treasury withholding equitable share grants from poor-performing municipalities
Impendle Municipality, which is one of the smallest rural municipalities in KwaZulu-Natal Midlands, was on Thursday holding its breath, hoping discussions would persuade the National Treasurer to withdraw its decision to withhold equitable share grants from poor-performing municipalities.
The National Treasury revealed on Tuesday that it was temporarily withholding the July 2026 equitable share transfers to certain municipalities to instil fiscal discipline.
Treasury said this is to ensure that public money allocated to the municipalities is properly managed and these municipalities learn to address unauthorised, irregular, fruitless, and wasteful expenditure (UIFWE).
Equitable shares are funds that the National Treasurer unconditionally transfers to provincial and local governments for administrative costs.
