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National Treasury to unfreeze funds to municipalities
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News – Cape Town ETC
Words: Liezl Human / GroundUpThe National Treasury will unfreeze equitable share transfers to a number of local municipalities by 31 July, but Minister of Finance Enoch Godongwana has warned that non-compliant municipalities are ‘not off the hook’.
Earlier this month, the Treasury froze R13.5 billion to 69 municipalities to ‘instil fiscal discipline’ after ‘persistent and serious non-compliance with the Municipal Finance Management Act ‘.
Of the 69 municipalities who had their funding withheld, 20 have received their equitable share in full, 21 have received partial funding, and 28 will receive their equitable share by the end of the month.
He said similar letters would be sent to the provincial MECs and premiers to work with COGTA and Treasury to assist these municipalities.
Godongwana noted that some municipalities would have had difficulty paying workers, even if the Treasury had not withheld funds.