The municipalities were flagged for multiple failures, ranging from non-submission of budget plans to outstanding payments and failures to address irregular expenditure
National Treasury is withholding equitable share allocations to 15 financially troubled municipalities in the North West province after invoking Section 216 of the Constitution, citing persistent failures to comply with financial management and accountability requirements.
A circular addressed to provincial executive committee members lists municipalities whose scheduled equitable share payments have now been stopped due to material breaches of Treasury norms and standards.
Municipalities flagged for multiple failures
Section 216 empowers the Treasury to halt transfers to any organ of state that commits “a serious or persistent material breach” of prescribed financial controls, including the submission of funded budgets, addressing irregular expenditures, and honouring payment arrangements with entities such as South African Revenue Service (Sars), pension funds as well as water boards.
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According to the circular, dated 9 December 2025, the municipalities were flagged for multiple failures ranging from non-submission of budget funding plans to outstanding payments and failures to address irregular, fruitless or wasteful expenditure.
Municipalities placed under enforcement include:
- Kgetlengrivier,
- Bojanala Platinum District,
- Lekwa-Teemane,
- Mamusa,
- Maquassi Hills,
- Naledi,
- Madibeng,
- JB Marks,
- Matlosana,
- Tswaing,
- Ngaka Modiri Molema District,
- Rustenburg,
- Moses Kotane,
- Moretele, and
- Dr Ruth Segomotsi Mompati District.
The South African Local Government Association (Salga) circular states that several municipalities failed to prove compliance with existing payment arrangements, particularly relating to pension fund contributions and Sars obligations.
Others did not respond to Treasury correspondence or failed to submit council-approved budget funding plans, conditions required for the release of national transfers.
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75 municipalities affected nationally
Though in smaller numbers, other municipalities in the Free State, Gauteng, Eastern Cape, Limpopo, Mpumalanga and the Northern Cape also appear on the national enforcement list.
While 75 municipalities are affected nationally, 80 letters were issued because several municipalities owe multiple water boards.
The withholding of the funds crucial for paying salaries, maintaining basic services, and supporting indigent households could plunge the already struggling municipalities into deeper financial and operational crises.
