North West welcomes release of withheld equitable share funds

North West welcomes release of withheld equitable share funds North West Finance MEC Kenetswe Mosenogi has welcomed Finance Minister Enoch Godongwana's decision to release the remaining withheld Local Government Equitable Share allocations to affected municipalities from 31 July 2026. Mosenogi said the provincial government recognises that the temporary withholding of funds was a corrective measure aimed at strengthening fiscal discipline, accountability and compliance within municipalities. The decision follows the temporary withholding of equitable share transfers to 12 municipalities in the province under Section 216(2) of the Constitution, read together with the applicable provisions of the Municipal Finance Management Act (MFMA). By the time the Minister announced the release of the remaining allocations, six of the 12 municipalities had already received their full equitable share. The remaining municipalities, including Madibeng, JB Marks, Matlosana, Mahikeng, Maquassi Hills and Dr Ruth Segomotsi Mompati, became eligible to receive their outstanding allocations from Friday. Mosenogi said the provincial government has put in place deliberate measures to support municipalities to meet the conditions set by National Treasury. "We note with appreciation that most municipalities have already received their full or partial equitable share allocations, with the remaining outstanding transfers now scheduled for release this week. "Six municipalities remained on the withholding list because of slow movement in addressing Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIF&WE), as well as a lack of consequence management," Mosenogi said in a statement. The MEC reiterated the provincial government's commitment to restoring stability in local government and ensuring municipalities become financially viable. “It is in our collective interest to fix local government so that communities receive consistent and reliable basic services,” she said. Provincial Treasury, working with the affected municipalities, had already capacitated municipalities with measures meant to ensure that they addressed UIF&WE in line with applicable circulars. The support includes guidance on investigations and governance processes involving municipal councils, Municipal Public Accounts Committees (MPACs) and disciplinary boards, to ensure the implementation of effective consequence management measures. Mosenogi also identified unpaid municipal accounts by government departments and public entities, as one of the key issues that continue to cripple the sufficient functioning of municipalities. She said Provincial Treasury has coordinated an intensive programme involving provincial departments, municipalities, public entities, and other stakeholders to verify outstanding balances, reconcile disputed accounts, facilitate payment arrangements, and improve the credibility of municipal financial information. According to the June 2026 municipal debt reconciliation, the total amount owed by provincial departments to municipalities declined from R1.010 billion reported in the March 2026 Section 71 reports to R893.1 million, representing a decrease of approximately R116.9 million, or 11.6%. Disputed accounts to be resolved by September In line with the Minister's directive, departments have been instructed to settle all undisputed municipal debt immediately, while payment arrangements must be finalised by the end of August 2026. All disputed accounts are expected to be resolved by September 2026. "These interventions have resulted in payments towards outstanding municipal debt, strengthened collaboration between government institutions and municipalities, and the establishment of structured mechanisms to improve debt reconciliation and financial reporting. "The North West Provincial Government has consistently tracked and reported on these payments because the financial health of our municipalities is a shared responsibility," Mosenogi said. While government remains committed to paying all legitimate municipal debt, the MEC stressed that disputed invoices arising from inaccurate municipal billing systems will not be paid until they have been properly reconciled. "We will work with the affected municipalities to resolve those disputes and support them to correct their billing systems so that accounts are accurate and credible.” Provincial Treasury, together with the Department of Cooperative Governance, Human Settlements and Traditional Affairs and other stakeholders, will continue providing oversight and support to municipalities to improve financial management and maintain compliance ahead of the December 2026 equitable share allocation. During August, the Provincial Treasury, working with Cooperative Governance and Traditional Affairs, will embark on district-specific government debt reconciliation working sessions with all municipalities. "We call on all municipalities in the province to use these working sessions to reconcile accoun