JOHANNESBURG - Treasury says its decision to freeze municipal funding will not affect service delivery. It is withholding more than R13 billion from 69 municipalities across the country.
The department says the measure is intended to enforce fiscal discipline and improve financial management.
Among the municipalities affected is the City of Johannesburg, where about R3.6-billion has been withheld.
Treasury says the money will be released once municipalities settle outstanding financial obligations and submit acceptable payment plans.
Treasury's Intergovernmental Relations Chief Director, Ogalaletseng Gaarekwe, says only a small portion of the total local government allocation has been withheld.
She says municipalities could regain access to the funds within days or weeks, depending on how quickly they respond.
Gaarekwe says the process worked successfully last year, with all withheld funds released by early August after municipalities met the required conditions.
She adds that the department does not expect the freeze to disrupt service delivery, as municipalities generate most of their operational funding from their own revenue.