EFF leader Julius Malema addresses a press briefing in Johannesburg.

Economic Freedom Fighters (EFF) leader Julius Malema has accused the National Treasury of punishing poor communities by withholding billions in equitable share allocations from struggling municipalities, warning that ordinary residents are bearing the brunt of government failures.

Addressing an EFF press briefing on Wednesday, Malema said Treasury's decision to temporarily withhold July 2026 equitable share transfers from dozens of municipalities was deepening service delivery crises in some of the country's most vulnerable communities.

While acknowledging the need to tackle corruption and financial mismanagement, Malema argued that Treasury's actions effectively punish residents rather than the officials responsible for governance failures.

"The EFF does not support corruption, financial misconduct or reckless management of public money. However, Treasury cannot use the people of a municipality as collateral damage in a fight with incompetent municipal administrations," Malema said.