National Treasury | Funding to 69 municipalities suspended: Bongani Mhlangu weighs in

National Treasury has stressed that the decision to temporarily withhold the equitable share of 69 municipalities is mainly aimed at arresting the culture of non-payment, and to curb fruitless and wasteful expenditure.

Treasury says the total equitable share withheld totals around R13,5 billion.

It revealed that the release of the funds will depend on how quickly the municipalities can sign repayment agreements with their creditors, which include water boards, Eskom and pension funds.

Treasury emphasises that the intervention will not interfere with the service delivery by affected municipalities, as the largest portion of funding comes from their own revenue.

Political analyst Bongani Mhlangu shares insights.

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