- Johannesburg incumbent mayor Dada Morero is facing challenges to her leadership.
- Treasury threatens to stop fund transfers to Johannesburg, with Morero receiving final notices from Treasury and Godongwana.
National Treasury Withholds Funds from 69 Municipalities Over Mismanagement
- Reports
- 4
- Developments
- 4
- Repetition
- 75%
New informationRepeats or wire copies
What happened
The National Treasury temporarily withheld July equitable share transfers from 69 municipalities across South Africa. This action was taken due to years of persistent financial mismanagement and noncompliance with the Municipal Finance Management Act. The Treasury stated the measure is corrective, not punitive, and did not expect the temporary withholding of funds to affect service delivery.
Why it matters
The intervention aims to instill fiscal discipline and ensure municipalities properly manage public money and address unauthorized expenditure. The National Treasury is exercising financial and regulatory control over local government functions. This move reflects deep frustration with growing municipal debt and weak service delivery.
The National Treasury has been threatening to stop fund transfers to Johannesburg, and Dada Morero is facing challenges to her leadership.
Who's involved
- National TreasuryImposing financial oversight and withholding equitable share transfers from local government
- JohannesburgOne of the major municipalities affected by the fund withholding
- Dada MoreroThe executive mayor of Johannesburg, facing leadership challenges
How it developed
Newest first. Tap a step to see who reported it.- The provincial government in North West collaborates with National Treasury on grant management and compliance issues.Sub-event
- Financial non-compliance led to fund withholding from Mopani District Municipality, and Pule Shayi was appointed to head the oversight department.Sub-event
- Invoking constitutional powers, the National Treasury utilizes the Financial and Fiscal Commission to advise on financial matters and monitor funds released to the city.Sub-event
Treasury is withholding equitable share transfers and imposing financial oversight on local government.1 source
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The entities involved
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National Treasury
treasury of South Africa
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Johannesburg
largest city in South Africa
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Gauteng
province in South Africa
Related events
- National Treasury is withholding equitable share allocations in the Eastern Cape due to financial mismanagement.
- The financial crisis involving Johannesburg and Eskom is ongoing, with Eskom owed R1.5 billion plus R5.2 billion in arrears, and the Gauteng provincial government holding responsibility for the city's issues.
- The Public Protector intervened in a billing crisis occurring in Johannesburg.
- Monitors the viability of Johannesburg's real estate market, noting the city's indispensable role to South Africa.