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National Treasury Presentation to Parliament Joint Portfolio Committees Meeting Regarding the Withholding of Local Government Equitable Share Transfers to Municipalities

National TreasuryRef: https://www.treasury.gov.za/DG%20NT%20Presentation.pdf

Official source

Source domain: treasury.gov.za

Collected on 17 July 2026

Always confirm details on the official source before acting.

What this means

This document is a presentation by the National Treasury (presented by the Minister of Finance and the DG: Treasury) to South Africa’s Joint Portfolio Committees on the enforcement of Section 216(2) of the Constitution. It explains that, as a corrective measure, National Treasury began withholding the July 2026 local government equitable share (LGES) instalment from municipalities that have not complied with Municipal Financial Management Act obligations, after extensive consultation and written notice. The presentation sets out the reasons for withholding, the number of municipalities affected (69), the process and dates for notices/letters, and the conditions required for reinstatement of transfers, including fiscal discipline, reducing UIFWe, paying bulk suppliers/third parties, and implementing consequence management.

What this document offers

Read out of this document by Govermate's AI, in its own words. Each one quotes the line it came from — confirm on the official source before acting.

financial relief opportunityOpen

Reinstatement of July 2026 Equitable Share Transfer

Municipalities that have been withheld the July 2026 equitable share transfer can apply for reinstatement by demonstrating fiscal discipline, reducing unauthorized, irregular, fruitless, and wasteful expenditure, holding officials accountable, and agreeing on payment plans with third parties such as SARS, pension funds, Eskom, and water boards.

Who it is for: municipalities that have been withheld the July 2026 equitable share transfer due to non-compliance with MFMA obligations
How to act on it: Submit proof of fiscal discipline, evidence of reduced UIFWe balance, signed payment agreements with third parties, and consequence management reports to the National Treasury for review by the Minister of Finance.
Closes

Facts

Reference

https://www.treasury.gov.za/DG%20NT%20Presentation.pdf

Amounts

R 24 120 000 000, R 145 210 000 000, R 118 130 000 000

Key Takeaways

Section 216(2) Constitution enforcement targeting July 2026 equitable share instalment
Presentation date: 17 July 2026
Affected municipalities: 69 (down from 99 when process started)
Withholding period: typically no longer than 30 days; may be up to 120 days
Reinstatement requirements: fiscal discipline; address UIFWe; accountability/consequence management; agree payment plans with third parties
Letters to Mayors: 99 letters emailed 22-23 June 2026; 69 letters emailed 03 July 2026
Minister of Finance approval to invoke s216(2): 19 June 2026 (intention) and follow-up decision communication approved 03 July 2026
Parliament advised: final decision taken 06 July 2026; letters to Speaker and NCOP Chairperson dated 19 June and 06 July 2026
Key non-compliance figures: R24.12bn fruitless and wasteful expenditure since 2021/22; R145.21bn irregular expenditure; R118.13bn unauthorised expenditure; 116 municipalities adopted unfunded budgets in 2024/25
UIFWe reduction target: 25% reduction of UIFWe total balance as at 30 June 2026 by 30 September 2026
Minister of Finance
DG - Treasury (National Treasury)
National Treasury
Joint Portfolio Committees
Cooperative Governance and Traditional Affairs (committee)
Standing Committee on Finance
Standing Committee on Appropriations
Standing Committee on Public Accounts
Auditor-General of South Africa
South African Revenue Services (SARS)
pension funds
Eskom
water boards
Department of Water and Sanitation
Department of Electricity and Energy
Financial Sector Conduct Authority
Parliament (Speaker and NCOP Chairperson)
SALGA (President of SALGA)
Provincial Treasuries (HODs PT)
Municipalities (69 affected)

Dates

Closing Date (read from the document by Govermate)

30 September 2026 (3d left)