Finance Minister Enoch Godongwana has announced that the National Treasury will release the remaining withheld July 2026 Local Government Equitable Share allocations from Friday, July 31, saying the move is intended to protect basic municipal services rather than reward poor financial management.
The announcement follows a weeks-long withholding of funds from municipalities that failed to meet financial governance requirements.
Godongwana cautioned that the release should not be mistaken for a clean bill of health.
“I wish to make it clear that the decision to release the remaining transfers does not mean that the affected municipalities have satisfied the requirements of the Municipal Finance Management Act, the Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings, or the requirements previously communicated in my letters.”
He said National Treasury’s assessments uncovered “material and continuing weaknesses” in the management of unauthorised, irregular, fruitless and wasteful expenditure (UIFWE), financial misconduct investigations, disciplinary processes and consequence management.
