The Minister of Cooperative Governance and Traditional Affairs, Velenkosini Hlabisa, and the Minister of Finance, Enoch Godongwana, briefed members of the media on the temporary withholding of Municipal Equitable Share transfers.
National Treasury will release the remaining withheld July 2026 Local Government Equitable Share transfers to affected municipalities from July 31, despite ongoing financial management failures. The decision is aimed at preventing disruptions to basic services while municipalities remain under pressure to fix governance and financial shortcomings.
Earlier this year, National Treasury withheld about R13.5 billion in Local Government Equitable Share transfers to 69 municipalities after identifying persistent and serious non-compliance with the Municipal Finance Management Act (MFMA).
While some municipalities had already received their allocations, approximately R7.1 billion remained outstanding for 49 municipalities.
The withholding of the funds prompted criticism from some unions and municipalities, which warned that the move could affect the delivery of essential services.
