The National Treasury has announced the temporary suspension of July 2026 equitable share transfers to 69 municipalities across all nine provinces, including Johannesburg, Mangaung, and Nelson Mandela Bay, after municipalities collectively reported R145.21 billion in irregular expenditure since 2021/22. Treasury cited persistent financial mismanagement, with total unauthorised, irregular, fruitless, and wasteful expenditure by municipalities reaching nearly R270 billion.

Key Municipalities And Financial Data

The affected list includes metropolitan centres such as Johannesburg, Mangaung, and Nelson Mandela Bay, as well as smaller municipalities like Buffalo City, Beaufort West, and Port St Johns, according to the National Treasury’s statement of 7 July 2026. Since 2021/22, municipal entities have reported R24.12 billion in fruitless and wasteful expenditure and R118.13 billion in unauthorised expenditure, official data shows. In the 2024/25 year alone, irregular expenditure amounted to R40.14 billion. Municipalities also owed R3.40 billion in interest to Eskom and a further R1.21 billion to water boards by year-end.

Government And Auditor-General Responses

National Treasury stated, “National Treasury is in the process of temporarily withholding the July 2026 equitable share transfers to selected municipalities to instil fiscal discipline and ensure that public money is properly managed; that unauthorised, irregular, fruitless and wasteful expenditure (UIFWE) is addressed; and that municipal officials and office-bearers are held accountable where required by law.” Treasury further called for upskilling and capacity development among municipal officials to correct ongoing failures in financial management.

Auditor-General Tsakani Maluleke, speaking on 16 March 2026, noted, “We found that often they were writing off without investigating,” referencing R62 billion in irregular municipal expenditure processed over five years, much of it written off or condoned without adequate scrutiny. The National Treasury’s intervention aims to enforce stricter adherence to municipal finance regulations and greater accountability, following repeated instances of unaddressed misconduct.

National Treasury has not yet confirmed when funding may be restored, indicating that remedial action and improved governance are prerequisites for future disbursements.