Parliament’s portfolio committee on co-operative governance and traditional affairs (Cogta) will convene a high-level joint meeting on Friday to consider the National Treasury’s decision to temporarily withhold local government equitable share allocations from 69 municipalities after the Financial and Fiscal Commission (FFC) raised concerns about the move. Committee chairperson Zweli Mkhize said the meeting will bring together: finance minister Enoch Godongwana;Cogta minister Velenkosini Hlabisa; the FFC;the South African Local Government Association (Salga);the chairpersons of parliament’s finance, appropriations and public accounts committees; and the nine provincial MECs responsible for local government. The committee announced the meeting after the FFC issued a statement urging parliament to scrutinise Treasury’s decision to withhold equitable share transfers from the municipalities.According to the commission, municipalities must be held accountable for financial mismanagement, but any intervention should be implemented transparently and within the framework of the constitution and relevant legislation. It said the local government equitable share is an unconditional allocation approved by parliament through the division of revenue process, and argued decisions affecting the grant should therefore be subject to parliamentary approval and oversight.The FFC also said parliament has an obligation under the Municipal Finance Management Act (MFMA) to scrutinise the Treasury’s decision within 30 days. It recommended parliament obtain a report from the auditor-general on the affected municipalities before deciding whether the withholding should continue, and said municipalities should be afforded an opportunity to respond before allocations remain withheld. The Treasury has maintained the withholding is a corrective rather than punitive interventionMkhize said he consulted Hlabisa, Godongwana, Salga and the chairpersons of parliament’s oversight committees before convening Friday’s meeting.“The aim is to help ensure focus on solutions to municipalities’ challenges,” he said.The National Treasury announced last week it was temporarily withholding the July 2026 equitable share transfers to 69 municipalities in terms of section 216(2) of the constitution, read with section 38 of the MFMA. The decision followed persistent and serious non-compliance with the MFMA despite support provided to municipalities through guidance, training and direct engagement. It said the measure is intended to: promote fiscal discipline;ensure the proper management of public money;address unauthorised, irregular, fruitless and wasteful expenditure; and improve accountability. The Treasury has maintained the withholding is a corrective rather than punitive intervention.Godongwana said many municipalities: continued to adopt unfunded budgets;failed to address unauthorised, irregular, fruitless and wasteful expenditure through their municipal public accounts committees; and did not meet statutory obligations to creditors including Eskom, water boards, Sars and pension funds.The Treasury said since the 2021-22 financial year, municipalities have accumulated: R145.21bn in irregular expenditure, R118.13bn in unauthorised expenditure; and R24.12bn in fruitless and wasteful expenditure.It said 116 municipalities adopted unfunded budgets in the 2024-25 financial year. Transfers will resume once municipalities meet the required compliance conditions and submit proof that they have addressed the deficiencies identified, it added.Business Day