Treasury withholds funds from 69 municipalities in all nine provinces

JOHANNESBURG - The National Treasury has withheld funding from 69 municipalities across all nine provinces.

According to the department, the move is aimed at ensuring public money is properly managed. 

It also seeks to curb unauthorised, irregular, fruitless and wasteful expenditure, while holding municipal office-bearers accountable where required by law.

"The decision follows persistent and serious non-compliance with the Municipal Finance Management Act and its supporting regulations," says the Treasury in a statement.

READ: Only 15% of municipalities achieved clean audits - Auditor General

The affected municipalities are in:

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.

According to Treasury, the municipalities were given sufficient written notice and urged to improve their financial management before the funds were withheld.

They were also given an opportunity to submit written reasons why their funds should not be withheld.

Treasury says the intervention is a corrective, rather than punitive, measure and that the withholding of funds is temporary.

"The National Treasury does not foresee any impact on service delivery," the department said.

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