Lerato Mutlanyane

The National Treasury has withheld equitable share allocations to 15 financially distressed municipalities in the North West, citing persistent failures to comply with financial management and accountability requirements.

The move follows the invocation of Section 216 of the Constitution, which empowers Treasury to stop transfers to any organ of state that commits serious or ongoing breaches of prescribed financial controls.

Equitable share is an unconditional grant drawn from national taxes and allocated to municipalities to fund basic services such as water, sanitation and refuse removal.

According to a South African Local Government Association (SALGA) circular dated 9 December and issued to provincial executive committee members, the affected municipalities were flagged for multiple failures.

These include the non-submission of funded budgets, failure to address irregular, fruitless and wasteful expenditure, outstanding payments, and non-compliance with payment arrangements involving entities such as the South African Revenue Service (SARS), pension funds and water boards.

The municipalities listed are Kgetlengrivier, Lekwa-Teemane, Mamusa, Maquassi Hills, Naledi, Madibeng, JB Marks, Matlosana, Tswaing, Modiri Molema District, Rustenburg, Mahikeng, Moses Kotane, Moretele and Dr Ruth Segomotsi Mompati District.

SALGA warned that the withholding of funds—used to pay salaries, maintain basic services and support indigent households - could push already struggling municipalities into deeper financial and operational crises.

The circular notes that equitable share payments will only be reinstated once municipalities demonstrate significant progress in meeting Treasury requirements, stabilising finances and ensuring uninterrupted service delivery, to avert what it describes as the risk of a national municipal crisis.