Treasury releases funds to compliant municipalities
Treasury said it has started releasing funds for some compliant municipalities whose Equitable transfer for July was withheld for non-compliance.
The National Treasury has temporarily frozen R13.5 billion in local government equitable share transfers for July to 69 municipalities nationwide due to persistent non-compliance.
Treasury appeared before Parliament’s joint oversight committee on Friday.
Treasury Director General Duncan Pieterse said some municipalities have started being compliant and will start receiving their funds from next week.
"Four municipalities have complied with the requirements relating to unauthorised, irregular, fruitless and wasteful expenditure and will receive the full amount of their withheld funding," he said.
The National Treasury also said that it is assessing information submitted by the remaining municipalities to determine whether they meet the conditions set out in letters sent to their mayors.
Pieterse said Treasury and provincial treasury teams are also assisting municipalities to meet the requirements.
Funding will be released on a weekly basis when the municipalities become compliant.
Twenty-seven (27) of the municipalities received their equitable share on Thursday.
Ten received the full amount, totalling R1.7 billion, while another 17 received a combined R2.9 billion in partial payments to settle priority creditors, including SARS and pension funds.
A further 22 municipalities are expected to receive their equitable share during the week of 20 July after meeting the required conditions.
"Municipalities that receive only partial payments will receive the balance once they provide proof that the funds have been used to pay the specified creditors," he explained.
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