Finance minister Enoch Godongwana has rallied behind the National Treasurys decision to withhold R13.5bn from 69 municipalities around South Africa, saying the move was not punitive but corrective.
Godongwana said the Treasury had taken a decision for funds to be redirected in tranches directly to Eskom, water boards, and statutory bodies to safeguard electricity, water, and pensions. Municipalities that demonstrated compliance would see their transfers reinstated.
The R13.5bn was part of the July tranche of the Treasurys equitable share transfers to local government. The municipalities, spanning all nine provinces and including major metros such as Buffalo City, Nelson Mandela Bay, Mangaung and Johannesburg which has had R3.6bn withheld were informed of the decision in advance and given an opportunity to explain why their transfers should not be withheld before the Treasury acted.
