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Parliament calls for new rules after Treasury withholds funds from 69 municipalities
['Algoafm South Africa']
AlgoaFM News
Parliament is calling for clearer rules on how it should respond when National Treasury withholds funding from municipalities, after 69 municipalities had their equitable share transfers temporarily withheld over non-compliance.
National Treasury announced last month that it was temporarily withholding equitable share transfers from 69 municipalities in an effort to force compliance with legal requirements.
Treasury has since indicated that the funds can be released if the affected municipalities meet certain conditions.
Following the announcement, the COGTA committee met with National Treasury, the Department of Cooperative Governance, the South African Local Government Association and the Financial and Fiscal Commission.
The committee was told that the affected municipalities had received some funding, while National Treasury continues working with them to resolve outstanding compliance issues.