The Free State is among the provinces hardest hit by Treasury’s intervention. Affected municipalities include Mangaung, Mohokare, Xhariep, Masilonyana, Matjhabeng, Dihlabeng and Ngwathe. In North West the twelve affected municipalities include Madibeng, Ditsobotla, City of Matlosana, Maquassi Hills and JB Marks, while in the Northern Cape eleven are affected, including Kamiesberg, Khâi-Ma, Renosterberg, Siyathemba, !Kai !Garib and Magareng.

Nationally, 69 municipalities have had their equitable share allocations withheld after failing to comply with key provisions of the Municipal Finance Management Act (MFMA).

Treasury said municipalities had been warned long before the drastic step was taken. Affected municipalities received written notices and were urged to improve their financial management before the funding was withheld. They were also reportedly given an opportunity to submit written representations explaining why the allocations should not be suspended.

‘Treasury’s decision (is) a necessary intervention to improve governance’

The department added it had consistently supported municipalities by issuing MFMA circulars outlining the measures required to comply with legislation. Despite these interventions, many municipalities continued to fall short, particularly by failing to adopt funded budgets, address unauthorised, irregular, fruitless and wasteful expenditure, and meet statutory financial obligations on time.

While Treasury’s reasoning centres on accountability, the immediate consequences are likely to be felt in communities already battling unreliable water supply, electricity interruptions, crumbling infrastructure and poor sanitation.

The Free State department of cooperative governance, traditional affairs and human settlements has thrown its weight behind Treasury’s decision, describing it as a necessary intervention to improve governance. Provincial Cogta spokesperson Zimasa Mbewu acknowledged the difficult balance between accountability and service delivery.

“Working in collaboration with the Free State Provincial Treasury, the department will continue to provide targeted support aimed at strengthening municipal capacity to manage their own affairs and perform their constitutional and legislative functions effectively,” she said.

The department recognises the temporary withholding of funds could have severe consequences for vulnerable communities that rely on municipalities for essential services, Mbewu added. MEC Saki Mokoena has reaffirmed the department’s commitment to assisting municipalities facing genuine financial and operational challenges.

‘The administration is busy now as we speak trying to comply to the 
letter of the National Treasury’

Deputy mayor and Mangaung Treasury MMC Lulama Titi-Odili revealed the metro expects to receive R1.3bn in equitable share allocations, but R498m has already been withheld.

“As the executive mayor has already acknowledged the freezing of the amount and also agreed that we will comply with the demands of the national treasury according to the letter that they gave us. I want to also emphasise that the administration is busy now as we speak trying to comply to the letter of the National Treasury.”

Titi-Odili admitted there is no certainty about when the frozen funds will be released, even if the municipality satisfies Treasury’s requirements. “It will affect basic services to residents as equitable share is the operational money which deals with basic services.”

At least 65,000 indigent households are registered in Mangaung. The registration programme is continuing across the metro’s seven towns and the municipality is under growing pressure to sustain service delivery with reduced operational funding. Titi-Odili maintained Mangaung’s budget remains funded but acknowledged corrective measures would be required.

OFM News/Kekeletso Mosebetsi sm

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