Overview
- National Treasury has formally frozen R13.5 billion in equitable-share transfers to 69 municipalities, naming many councils in the Free State and four in Limpopo (Musina, Thabazimbi, Fetakgomo/Tubatse and Mopani).
- Treasury set clear conditions for release that require cutting unauthorised, irregular and fruitless and wasteful expenditure, instituting consequence management, meeting creditor obligations such as Eskom and water boards, and adopting funded budgets that comply with the Municipal Finance Management Act.
- Free State Finance MEC Ketso Makume described the move as a corrective intervention and said provincial treasury teams will engage affected councils and offer technical support and tailored recovery plans to help them meet Treasury’s requirements.
- Trade unions including SAMWU, Cosatu and the SACP warned the freeze could harm workers and service delivery, while opposition groups such as the Bolsheviks Party of South Africa blamed local political leadership failures and called for stronger accountability.
- Equitable-share transfers are a primary funding source for municipal services and Treasury says withheld funds will be restored only after municipalities show compliance, leaving monitoring, possible disciplinary action and risks to service delivery as the immediate next issues to watch.