The National Treasury has temporarily withheld funding from 69 municipalities across all nine provinces, citing persistent failures to comply with financial management legislation.
In a statement, Treasury said the intervention is intended to improve accountability and ensure that public funds are managed responsibly. It also aims to curb unauthorised, irregular, fruitless and wasteful expenditure while ensuring municipal office-bearers are held accountable where required by law.
"The decision follows persistent and serious non-compliance with the Municipal Finance Management Act and its supporting regulations," Treasury said.
The affected municipalities include major metropolitan councils such as Buffalo City, Nelson Mandela Bay, Mangaung and the City of Johannesburg, as well as several district and local municipalities across the country.
The municipalities affected are:
Eastern Cape
Buffalo City, Nelson Mandela Bay, Makana, Sundays River Valley, Inxuba Yethemba, Port St Johns
Free State
Mangaung, Letsemeng, Kopanong, Mohokare, Xhariep District Municipality, Masilonyana, Tokologo, Matjhabeng, Nala, Dihlabeng, Nketoana, Maluti-a-Phofung, Phumelela, Mantsopa, Ngwathe, Mafube
Gauteng
City of Johannesburg, Emfuleni, Lesedi, Sedibeng District Municipality, Merafong City, Rand West City
KwaZulu-Natal
iMpendle, uMzinyathi District Municipality, Newcastle, eMadlangeni, Amajuba, District Municipality, AbaQulusi, uMkhanyakude District Municipality
Limpopo
Mopani District Municipality, Musina, Thabazimbi, Modimolle-Mookgopong, Fetakgomo Tubatse
Mpumalanga
Victor Khanye, Emakhazeni, Nkomazi
Northern Cape
Kamiesberg, Khâi-Ma, Ubuntu, Umsobomvu, Emthanjeni, Renosterberg, Thembelihle, Siyathemba, Kai !Garib, Magareng, Phokwane
North West
Madibeng, Kgetlengrivier,Tswaing, Mafikeng, Ditsobotla, Ngaka Modiri Molema District Municipality, Naledi, Mamusa, Dr Ruth Segomotsi, Mompati District Municipality, City of Matlosana, Maquassi Hills, JB Marks
Western Cape
Theewaterskloof, Laingsburg., Beaufort West.
Treasury said the affected municipalities were given adequate written notice of their non-compliance and were encouraged to address shortcomings in their financial management before the funding was withheld.
Municipalities were also afforded an opportunity to make written submissions explaining why the funds should not be withheld.
Treasury stressed that the intervention is intended as a corrective measure rather than a punitive one, adding that the withholding of funds is temporary.
"The National Treasury does not foresee any impact on service delivery," the department said.
The move forms part of government's broader efforts to strengthen financial governance and improve accountability within municipalities that have repeatedly failed to meet the requirements of the Municipal Finance Management Act.