Nelson Mandela Bay Metropolitan Municipality has warned that critical public services could grind to a halt after South Africa’s National Treasury invoked corrective measures to withhold its July equitable share allocation.
The metro administration stated that the funding freeze, combined with weak revenue collection and escalating non-revenue water and electricity losses, threatens to severely disrupt operations across the region.
Daily Maverick reported that local officials fear the worst-case scenario, where the inability to pay for essential inputs leads to widespread service failures.
The withholding of the equitable share effectively cuts off a primary source of municipal financing, intensifying a deepening liquidity crisis for the municipality.
Daily Maverick reported that local officials fear the worst-case scenario, where the inability to pay for essential inputs leads to widespread service failures.
The move by the National Treasury signals a hardening stance on fiscal discipline, targeting municipalities that have failed to meet financial management standards.
This development underscores the broader fiscal stress facing South African local government entities.