Pressure on non-compliant municipalities

National Treasury is withholding equitable share allocations to 15 financially troubled municipalities in the North West after invoking Section 216 of the constitution, citing persistent failures to comply with financial management and accountability requirements.

- Sipho Mabena

A circular addressed to provincial executive committee members lists municipalities whose scheduled equitable share payments have now been stopped due to material breaches of Treasury norms and standards.

Section 216 empowers Treasury to halt transfers to any organ of state that commits “a serious or persistent material breach” of prescribed financial controls, including the submission of funded budgets, addressing irregular expenditures and honouring payment arrangements with entities such as SA Revenue Service (Sars), pension funds as well as water boards.