Treasury reinstates R3.6bn for Joburg as municipalities comply
· Citizen
National Treasury reinstated the July equitable share allocation to 42 of 69 municipalities that had funds frozen over their failure to address governance issues.
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This was after Finance Minister Enoch Godongwana invoked Section 216 of the constitution in what he described as a corrective measure to spur municipalities to change their financial management positions.
Treasury reinstates July allocation to Joburg and 41 others
On Friday, Godongwana was on the carpet at parliament’s portfolio committee on cooperative governance and traditional affairs, telling it that Treasury has the legal right to withhold the equitable share transfer of municipalities without parliament’s approval.
But some MPs remain divided on his approach.
The Financial and Fiscal Commission, which advises government and parliament on financial matters, called for the decision to be scrutinised.
Treasury director-general Duncan Pieterse said 42 of the 69 municipalities have complied with the requirements and already have their equitable share allocations reinstated.
This includes the City of Joburg and Nelson Mandela Bay.
ActionSA president and Joburg mayoral candidate Herman Mashaba has written to Godongwana, recommending a technical support team monitor the National Treasury funds that will be transferred to Joburg.
Mashaba demands monitoring team to ensure funds used correctly
“The letter also inquires whether the city has provided a satisfactory recovery plan before the funds are released and the mechanisms Treasury intends to employ to ensure the funds are used exclusively for their intended purposes,” said Mashaba.
“This comes as the city battles a liquidity crisis, with nine days of funds left in its coffers and relying on the reinstatement of R3.6 billion in its equitable share allocation.
“Millions of residents are victims of a government that has eroded public trust in its ability to act in its interests.
“ActionSA’s position is clear – mayor Dada Morero and the city’s leadership have failed to uphold basic governance and fiscal management competencies outlined in the Municipal Finance Management Act,” he said.
Mashaba said Joburg is facing significant risks to service delivery, infrastructure investment and investor confidence.