North west: North West Finance MEC Kenetswe Mosenogi has expressed approval for Finance Minister Enoch Godongwana's decision to release the remaining withheld Local Government Equitable Share allocations to affected municipalities starting from 31 July 2026. Mosenogi acknowledged that the temporary withholding of funds served as a corrective measure to enhance fiscal discipline, accountability, and compliance within municipalities.
According to South African Government News Agency, the decision to release the funds follows the temporary withholding of equitable share transfers to 12 municipalities in the province. This action was taken under Section 216(2) of the Constitution, alongside relevant provisions of the Municipal Finance Management Act (MFMA). By the time the release was announced, six municipalities had already received their full equitable share, while the remaining municipalities, including Madibeng, JB Marks, Matlosana, Mahikeng, Maquassi Hills, and Dr Ruth Segomotsi Mompati, are now eligible to receive their outstanding allocations.
Mosenogi emphasized the provincial government's efforts to support municipalities in meeting the conditions set by the National Treasury. Measures have been implemented to ensure compliance and address issues such as Unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFandWE). Mosenogi reiterated the commitment to restoring stability in local governments and ensuring their financial viability.
The Provincial Treasury has been actively working with affected municipalities to enhance their capacity in addressing UIFandWE, providing guidance on investigations and governance processes involving municipal councils, Municipal Public Accounts Committees (MPACs), and disciplinary boards. Additionally, unpaid municipal accounts by government departments and public entities have been identified as a significant challenge affecting municipal functionality.
Mosenogi highlighted an intensive programme coordinated by the Provincial Treasury to address these issues, involving stakeholders from provincial departments, municipalities, and public entities. This programme focuses on verifying outstanding balances, reconciling disputed accounts, facilitating payment arrangements, and improving the credibility of municipal financial information. The June 2026 municipal debt reconciliation indicated a reduction in the total amount owed by provincial departments to municipalities from R1.010 billion in March 2026 to R893.1 million, a decrease of approximately R116.9 million, or 11.6%.
Government departments have been instructed to settle all undisputed municipal debt immediately, with payment arrangements to be finalised by the end of August 2026, and all disputed accounts resolved by September 2026. Mosenogi stressed that while the government is committed to settling all legitimate municipal debts, disputed invoices due to inaccurate billing systems will not be paid until properly reconciled.
Provincial Treasury, along with the Department of Cooperative Governance, Human Settlements and Traditional Affairs, and other stakeholders, will continue to provide oversight and support to municipalities to enhance financial management and maintain compliance ahead of the December 2026 equitable share allocation. In August, district-specific government debt reconciliation working sessions will be conducted with all municipalities to ensure compliance with the conditions for the release of the December equitable share.