Treasury defends decision to withhold funding from 69 municipalities

In December last year, the National Treasury embarked on an extensive process of consultations with the affected municipalities that were in breach of the obligations in terms of the Municipal Finance Management Act and we gave them notices in September and in December last year that equitable shares could be withheld or stopped if they fail to take action to address them.

National Treasury, led by Finance Minister Finance Minister Enoch Godongwana, briefed the Portfolio Committee on Cooperative Governance on its decision to withhold the money.” Godongwana told the meeting that National Treasury is, by law, entitled to withhold equitable share transfer to municipalities.