South Africa’s National Treasury has suspended July funding transfers to 69 municipalities, including Johannesburg, citing financial mismanagement and the need to strengthen fiscal discipline.
The Treasury said the decision, which affects municipalities across all nine provinces, is aimed at ensuring public funds are properly managed and improving financial accountability at the local government level.
Municipalities in South Africa rely largely on property rates and service charges for revenue but also receive allocations from the national government.
Johannesburg, the country’s economic hub, has faced mounting financial and service delivery challenges in recent years, including deteriorating infrastructure, burst water pipes, pothole-ridden roads and uncollected refuse.
The suspension of funding adds to the city’s financial pressures, with Johannesburg reportedly owing billions of rand to electricity and water utilities while struggling to maintain essential public services.
Earlier in May, Finance Minister Enoch Godongwana warned that the city’s July allocation could be withheld unless it reversed a proposed R10.3 billion wage agreement for municipal workers.
President Cyril Ramaphosa also criticised the condition of Johannesburg last year, describing the state of the city as unsatisfactory.
Other municipalities affected by the funding suspension include Emfuleni, Nelson Mandela Bay, Buffalo City, Mopani and Mangaung.
The Treasury said the funding freeze is not expected to disrupt service delivery and noted that transfers will resume once affected municipalities meet specified financial management conditions.
Among the requirements is a minimum 25 per cent reduction in unauthorised, irregular, fruitless and wasteful expenditure.
The move comes ahead of South Africa’s local government elections scheduled for November.
