South Africa’s National Treasury has released R7 billion in previously withheld funding to 49 municipalities, marking a partial reversal of its aggressive enforcement stance on local government finances.
The move comes as the government seeks to balance fiscal discipline with the need to ensure essential services continue for residents in struggling areas.
Dr Zweli Mkhize, chairperson of the National Treasury, emphasized that accountability remains paramount.
The release follows a period of intense scrutiny over municipal financial mismanagement, during which the Treasury withheld R13.5 billion in July equitable share allocations from 69 municipalities.
That action was part of a broader escalation in enforcement measures aimed at curbing corruption and inefficiency at the local level.
However, the decision to now release funds to nearly half of those affected entities suggests a more nuanced approach is being adopted.
Dr Zweli Mkhize, chairperson of the National Treasury, emphasized that accountability remains paramount.