A couple of weeks ago the North West Provincial Treasury held working sessions with the nine municipalities whose equitable shares were withheld. Following this intervention, Provincial Treasury reported to be satisfied that six of the nine municipalities have complied with set conditions and as a result their equitable share was released by Friday 02 August 2019.

In accordance to the pre-condition put in place by the department for the release of the funds, municipalities had to convene special council meetings to adopt the twelve (12) resolutions in line with the directive of the Provincial Treasury. The department further confirmed that the six municipalities that have complied with set conditions are Ditsobotla, Kgetlengrivier, Naledi, Mamusa, Madibeng and Tswaing.

“We are happy that the six municipalities have complied with all the set conditions and this will lead to the release of the equitable share. Importantly, this will ensure the delivery of basic services to communities as municipalities will be able to meet their financial obligations,” says MEC For Finance, Ms Motlalepula Rosho.

Maquassi Hills and Dr Ruth Segomotsi Mompati are yet to convene their respective Council meetings and adopt the resolutions as directed by the Provincial Treasury, as a result their equitable share remains delayed. As part of the support programme, the Provincial Treasury is constantly engaging the two municipalities to ensure compliance with the directives so as to facilitate the release of the equitable share.

The Medium Term Budget Policy Statement’s Division of Revenue defines Equitable Shares as a provision by the constitution that each sphere of government – national, provincial and local – is entitled to an equitable share of revenue raised nationally to enable it to provide basic services and perform the functions allocated to it. The equitable division of revenue takes into account the functions assigned to each sphere and the capacity of each government to pay for these functions through own receipts and revenues.

MEC for Finance, Ms Rosho has emphasised that the Provincial Treasury remains committed to supporting and capacitating all the municipalities with regard to the implementation of the set conditions with the sole purpose of ensuring sound financial management, good governance and enhanced accountability for the ultimate realisation of delivery of basic services to the communities.

-The VIP Team

-NW Provincial Treasury

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