National Treasury has announced that it will begin releasing the remaining funds withheld from municipalities from the end of July, following ongoing assessments of their compliance with municipal finance legislation.
The funding had been temporarily withheld from 69 municipalities over concerns that they were failing to meet the requirements of the Municipal Finance Management Act (MFMA).
Last week, Treasury confirmed that it had lifted the funding freeze for 42 of the affected municipalities. It also revealed that 10 municipalities had already received their full allocations, totalling R1.7 billion.
Treasury said the latest decision follows continued monitoring of the municipalities' financial management and governance practices.
However, it stressed that the release of the funds should not be interpreted as an indication that the municipalities have fully resolved their financial and compliance challenges.
The department said municipalities remain legally obliged to comply with the provisions of the Municipal Finance Management Act and improve their financial management practices to ensure the sustainable delivery of services.
Treasury is expected to continue monitoring municipalities' compliance as part of ongoing efforts to strengthen financial governance and accountability at local government level.