KwaZulu-Natal Treasury MEC Francois Rodgers has come out in support of the national Treasury’s decision to withhold part of the equitable share of poorly performing municipalities in the province, saying the move is a justified response to the mismanagement of public funds. Municipalities receive a quarterly equitable share from the national Treasury to pay salaries and roll out programmes, among other things. In December, however, the Treasury resolved to withhold portions of the allocation after some municipalities failed to address financial weaknesses identified by the department.
Of the 75 affected municipalities nationwide, eight are in KwaZulu-Natal. This difficult decision was taken in light of continued financial misconduct, including the adoption of budget funding plans that lack credibility and the continued issuing of tenders despite the absence of available funds. “It remains the mission of the government of provincial unity (GPU) to ensure that municipalities function optimally and serve communities by ensuring the sustainable delivery of water, electricity and waste removal, among other services.
Political support and effective oversight, however, remain an important component of this mission,” Rodgers added. While the national Treasury has yet to release a full list of affected municipalities, Impendle Municipality under the uMgungundlovu District is among those whose funds were withheld. Last week,The Witnessreported that Impendle Municipality was unable to pay the December salaries of some employees, which the council attributed to the national Treasury’s decision to withhold part of its equitable share. The municipality, which typically receives about R16 million in equitable share funding each quarter, received only about R3,9 million in the quarter beginning in December.
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