The North West MEC for Finance, Kenetswe Mosenogi, welcomes the decision by the Minister of Finance, Enoch Godongwana, to commence the release of the remaining withheld Local Government Equitable Share transfers from 31 July 2026.
Mosenogi expressed that the North West Provincial Government recognises that the measure was corrective in nature and aimed at strengthening fiscal discipline, accountability and compliance within municipalities.
This decision follows the temporary withholding of transfers for 12 municipalities in the North West Province under section 216(2) of the Constitution, read with the applicable provisions of the Municipal Finance Management Act (MFMA).
As at the date of the Minister’s statement relating to the release of the remaining equitable share, six of the 12 municipalities had already received their entire equitable share. The last six municipalities, namely Madibeng, JB Marks, Matlosana, Mafikeng, Maquassi Hills and Dr Ruth Segomotsi, will receive their remaining equitable share effective from 31 July 2026.
Mosenogi shared that the Provincial Government has put in place deliberate measures to support municipalities to meet the conditions set by National Treasury.
“We note with appreciation that most municipalities have already received their full or partial equitable share allocations, with the remaining outstanding transfers now scheduled for release this week. Six municipalities remained on the withholding list because of the slow movement in addressing Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIF&WE), as well as a lack of consequence management.”
The MEC said most importantly, the North West Provincial Government reaffirms its firm commitment to stabilising local government and ensuring that municipalities become financially viable.
“It is in our collective interest to fix local government so that communities receive consistent and reliable basic services,” echoed the MEC.
The Provincial Treasury, working with the affected municipalities, had already capacitated municipalities with measures meant to ensure that they addressed UIF&WE in line with applicable circulars.
The support includes providing guidance in relation to the investigations and processes that should be undertaken by relevant structures of the municipality, namely Council, the Municipal Public Accounts Committee (MPAC) and Disciplinary Boards, for the implementation of effective consequence management measures.
MEC Mosenogi explained that one of the issues that continues to cripple the sufficient functioning of municipalities is the debt owed to these institutions by government departments and public entities.
She indicated that the Provincial Treasury coordinated an intensive programme of engagements with provincial departments, municipalities, public entities and other stakeholders to verify outstanding balances, reconcile disputed accounts, facilitate payment arrangements and improve the credibility of municipal financial information.
The North West Provincial Government has made measurable progress towards addressing outstanding municipal debt owed by provincial departments and public entities.
According to the June 2026 municipal debt reconciliation, the total amount owed by provincial departments to municipalities has been reduced to R893.1 million from the R1.010 billion reported in the March 2026 section 71 reports.
This represents a decrease of approximately R116.9 million, or 11.6%, suggesting that reconciliation processes have significantly improved the accuracy of the debt position.
As per the Minister’s directive, departments have been directed to settle all undisputed debt immediately. All payment arrangements must be finalised by the end of August 2026, including addressing all disputed debts by September 2026.
“These interventions have resulted in payments towards outstanding municipal debt, strengthened collaboration between government institutions and municipalities, and the establishment of structured mechanisms to improve debt reconciliation and financial reporting. The North West Provincial Government has consistently tracked and reported on these payments because the financial health of our municipalities is a shared responsibility,” said the MEC.
“While we remain committed to settling all legitimate amounts due to municipalities, where genuine disputes or misstatements arise from municipal billing systems, we will not simply settle contested invoices. Instead, we will work with the affected municipalities to resolve those disputes and support them to correct their billing systems so that accounts are accurate and credible,” she exclaimed.
The North West Provincial Treasury, working with the Department of Cooperative Governance, Human Settlements and Traditional Affairs and other stakeholders, will continue to provide support, monitoring and oversight to assist municipalities to sustain compliance and improve their financial management practices ahead of the December 2026 and subsequent equitable share instalments.
During August 2026, the Provincial Treasury, working with Cooperative Governance and Traditional Affairs, will embark on district-specific government debt reconciliation working sessions with all municipalities.
It is expected that government departments, both national and provincial, will work with all municipalities on the reconciliation of accounts, with the sole objective of ensuring that municipal accounts are paid on time.
“We call on all municipalities in the province to use these working sessions for the reconciliation of accounts with departments and further embrace all provincial efforts to ensure that conditions for the release of the December equitable share are complied with,” concluded the MEC.
Enquiries:
Lesedi Makhubela
Media Liaison Officer
Cell: 062 103 2798
Kesalopa Gill
Director: Information Management
Tel: 018 388 1363/2319/3584
#ServiceDeliveryZA
