Finance Minister Enoch Godongwana has outlined what National Treasury expects affected municipalities to do in order to have their equitable share transfers reinstated.
Earlier this week, Treasury announced that equitable share transfers to 69 municipalities would be temporarily withheld to instil fiscal discipline, ensure public money is properly managed and to deal with unauthorised, irregular, fruitless and wasteful expenditure by these entities.
Among the targets to be met by the affected municipalities are a 15% reduction in irregular expenditure balances by August and another 15% by September, alongside evidence of funded budgets, functioning disciplinary boards and consequence management.
In a July 10 media briefing, Godongwana said this approach would ensure essential service delivery continues, while municipalities are compelled to correct their financial practices.
Provincial treasuries will monitor compliance and Treasury will continue to provide support through circulars, engagements and training.
