R27 Billion of the Local Government Equitable Share distributed to municipalities nationwide
The Department of Cooperative Governance has distributed a tranche of the Local Government Equitable Share (LGES) to municipalities across the country. This significant allocation, amounting to a total of R27 billion, has been transferred to the primary bank accounts of all municipalities, further reinforcing their capacity to fulfill their essential functions.
However, it is noteworthy that R1.7 billion has been withheld from 15 municipalities across seven provinces, excluding KwaZulu-Natal and Limpopo. The reason for this withholding stems from these municipalities’ failure to adhere to budgetary regulations, pointing out the importance of fiscal responsibility and compliance within the local government fiscal framework.
The disbursement of LGES aligns with Section 216 of the Constitution, empowering the national government to allocate resources to municipalities in accordance with the annual Division of Revenue Act (DORA). This financial support aims to assist municipalities in executing their powers and duties effectively.
The basic services component of LGES entails a subsidy for the provision of essential services to impoverished households. This subsidy includes funding for free basic water, energy, sanitation, and refuse removal, ensuring that the most vulnerable communities have access to these vital services without financial strain.
The Department urges Municipal Public Accounts Committees (MPACs) to play a proactive role in overseeing expenditure within municipalities, in alignment with the revised Municipal Structures Act. This act, subject to recent review, has clarified the distribution of powers between the executive and legislative branches of municipal councils. Furthermore, it has underscored the importance of the Municipal Public Accounts Committees (MPAC) and introduced the role of the Council whip across all municipalities, reinforcing ethical conduct and governance within local government entities.
For media enquiries, kindly contact:
Mr. Legadima Leso: 066 479 9904
Mr. Tsekiso Machike: 078 237 3900
