Godongwana to release R7.1bn in withheld municipal funds to keep service delivery running
Funds released not because of compliance In a joint media briefing with National Cooperative Governance and Traditional Affairs (Cogta), Godongwana said the decision to release the funds is to avoid having an adverse short- to medium-term effect on the delivery of basic municipal services.
The decision comes as the Free State remains one of South Africa’s worst-run provinces in local government, with municipalities crippled by financial mismanagement, mounting debt, crumbling infrastructure and an inability to provide even the most basic services.
Municipal equitable share provides unconditional national revenue grants to help local governments fund basic services for poor households, subsidise core administrative costs, and fulfil their constitutional delivery duties.
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