South Africa’s 69 Municipalities Face Funding Freeze Amid R145Billion Mismanagement Johannesburg, South Africa – In a landmark decision, the National Treasury has temporarily withheld July 2026 equitable share transfers to 69 municipalities across South Africa, citing severe financial mismanagement. This move, which affects municipalities in all nine provinces, underscores the scale of the financial crisis gripping the nation’s local government.

The Treasury’s decision came after a comprehensive review revealed substantial financial mismanagement, including R24.

12 billion in fruitless and wasteful expenditure, R145. 21 billion in irregular expenditure, and R118.

13 billion in unauthorised expenditure.

Major cities such as Johannesburg, Buffalo City, Mangaung, and Nelson Mandela Bay are among the affected municipalities.

According to the Sunday Independent, the intervention is one of the most severe constitutional interventions yet by the National Treasury.

The Mercury and Jacaranda FM highlighted the geographic breadth of the affected municipalities, spanning all nine provinces, with the intention to promote fiscal discipline.

The Mercury reported that the move was aimed at enforcing fiscal discipline, addressing financial mismanagement, and ensuring accountability among municipal officials and office — bearers. BusinessDay. Co.

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Za and Current AffairsZA focused on the specific amounts of unauthorised, wasteful, fruitless, and irregular expenditure, underscoring the scale of the financial mismanagement.

The National Treasury’s decision was made after repeated interventions, guidance, and engagements with the affected municipalities failed to improve compliance with the Municipal Finance Management Act (MFMA).

The Mercury noted that the intervention was not intended as punishment but as a corrective intervention aimed at restoring financial accountability.

Treasury stressed that the withholding of the funds would be for a short — term period and did not foresee any impact on service delivery.

The Mercury also reported that the move was being implemented under section 216(2) of the Constitution and section 38 of the Municipal Finance Management Act.

The Sunday Independent highlighted that local government has been characterised by dysfunctional municipalities, financial mismanagement, council and administrative instability, and crumbling municipal infrastructure.

The Mercury reported that the scale of irregular, unauthorised, and fruitless expenditure, together with the growing number of unfunded budgets, suggested previous interventions had not produced sufficient improvement, making stronger enforcement increasingly necessary.

The National Treasury’s intervention is expected to put pressure on the affected municipalities to address their financial issues and ensure proper management of public funds.

The Mercury reported that the withholding of the funds would be for a short — term period and that the National Treasury does not foresee any impact on service delivery.

The Sunday Independent and Jacaranda FM noted that the move is aimed at promoting fiscal discipline and ensuring that public money is properly managed.

The Mercury reported that the move was being implemented under section 216(2) of the Constitution and section 38 of the Municipal Finance Management Act.

The National Treasury’s intervention is a critical step in addressing the financial crisis in South Africa’s local government.

The Mercury reported that the move is aimed at instilling fiscal discipline and ensuring that public money is properly managed.

The Mercury also reported that the move was being implemented under section 216(2) of the Constitution and section 38 of the Municipal Finance Management Act.

The Mercury reported that the move is aimed at enforcing fiscal discipline, addressing financial mismanagement, and ensuring accountability among municipal officials and office — bearers.