Finance Minister Enoch Godongwana reports that letters have been written to national departments and provinces warning them that their September equitable-share transfers could be withheld should they fail to settle outstanding payments to municipalities.
The Minister put national and provincial government on notice during a briefing held to announce that the National Treasury will begin releasing the local government equitable share transfers not yet transferred on July 31.
This, despite the fact that not all of the 69 municipalities affected by the decision to withhold the transfers had complied with the requirements set for the release of the funds.
The move to withhold the July transfers – the first of three distributed yearly to local governments, with the other payments made in December and March – was announced in early July and was taken in terms of Section 216(2) of the Constitution, read with Section 38 of the Local Government: Municipal Finance Management Act 56 of 2003.
It followed the failure of these 69 municipalities to respond to letters sent to 99 municipal mayors on June 22 requesting evidence that they were moving to adhere to the requirements of the Municipal Finance Management Act.
