PRETORIA – The Dr Ruth Segomotsi Mompati District Municipality, Naledi Local Municipality, and Mamusa Local Municipality are among 69 municipalities across South Africa that will have their July 2026 equitable share transfers temporarily withheld by the National Treasury due to persistent financial management failures.  

In a media statement issued on 7 July 2026, National Treasury said the decision is aimed at strengthening fiscal discipline and ensuring that public funds are managed responsibly. Treasury stressed that the measure is intended to address unauthorised, irregular, fruitless and wasteful expenditure (UIFWE) and to ensure that municipal officials and office-bearers are held accountable where required by law.  

According to Treasury, the affected municipalities have repeatedly failed to comply with the Municipal Finance Management Act (MFMA) despite receiving support through training, guidance, one-on-one engagements and formal communication. The department said some municipalities have also failed to adopt funded budgets, process cases of irregular expenditure correctly, ensure proper consequence management, and meet statutory financial obligations such as payments to Eskom, water boards and other institutions.  

National Treasury emphasised that the withholding of funds is a corrective rather than punitive measure and said it does not expect the short-term withholding to negatively affect service delivery. The department added that the transfers will be released once municipalities meet the required conditions and provide proof that they have addressed the identified shortcomings.  

The media statement also highlighted broader concerns raised in the Auditor-General’s latest local government audit outcomes, including billions of rands in unauthorised, irregular, fruitless and wasteful expenditure incurred by municipalities nationwide over recent years.  

-The VIP Team 

-SA National Treasury