Pretoria: Finance Minister Enoch Godongwana has reiterated the necessity of withholding the July 2026 equitable shares from 69 municipalities as a measure to enforce compliance with legal standards and improve service delivery.

According to South African Government News Agency, the Minister shared these insights during a media briefing, highlighting that the decision was made due to the persistent non-compliance of these municipalities. The withheld shares target municipalities that have failed to adopt funded budgets, incurred unauthorized and wasteful expenditures, and neglected statutory obligations to entities such as Eskom, water boards, and the Auditor-General.

Godongwana emphasized that withholding funds is not an unprecedented action but is significant in its scale this time, resembling measures last undertaken in 2016. He stated that this strategy compels municipalities to enhance service delivery by holding them accountable for their financial management. The Minister outlined steps for municipalities to regain their equitable shares, such as developing funded budgets and setting payment schedules for creditors.

The Finance Minister stressed the importance of government reforms being accompanied by active participation from all state institutions to ensure their effectiveness. Treasury's press statement painted a concerning picture of municipal finances, citing R24.12 billion in fruitless and wasteful expenditure since 2021-22 and R145.21 billion in irregular expenditure, with substantial amounts recorded in recent fiscal years.

Godongwana underscored the need for financial sustainability and accountability within municipalities to foster public trust and effective service delivery. He concluded by asserting that South Africans deserve municipalities that adhere to fiscal responsibility and uphold the rule of law.