National Treasury Deputy Director-General Ogalaletseng Gaarekwe addressing the media after the department announced the withholding of equitable share transfers to 69 municipalities in an effort to instill fiscal discipline.
More than R115 million in equitable share allocations has been withheld from three Western Cape municipalities by the National Treasury as it moves to enforce compliance with municipal financial management laws.
Laingsburg, Beaufort West and Theewaterskloof are among 69 municipalities nationwide that have been penalised for persistent and serious non-compliance with the Municipal Finance Management Act (MFMA) and its regulations, despite repeated support, guidance and engagement from National Treasury.
The biggest allocation affected is Theewaterskloof, which has had R65.8 million withheld after Treasury found no evidence of adequate consequence management relating to allegations of financial misconduct and unauthorised, irregular, fruitless and wasteful expenditure (UIFWE).
Beaufort West has had R39.9 million withheld, while Laingsburg will forfeit R9.86 million until it demonstrates sufficient progress in addressing similar shortcomings.
