The AbaQulusi Local Municipality could receive its withheld equitable share funding as early as next week after the National Treasury confirmed that it has received the required documentation from the municipality.

Treasury confirms required documents received

An email from the National Treasury, dated July 8, confirms that AbaQulusi has submitted all the documents required under the Section 216 intervention process.

According to the email, Treasury received a response letter addressed to the Minister of Finance and signed by the Mayor, a valid payment agreement between Eskom and the Municipal Manager, as well as proof of payments made on June 23.

Treasury said the submissions comply with the requirements set out by the Minister of Finance.

“Following the municipality’s positive response, the National Treasury in collaboration with the KZN Provincial Treasury assessed the submission and confirmed that AbaQulusi Local Municipality will be included in the next release,” the email states.

While no exact payment date has been confirmed, Treasury said it anticipates that the next release could take place later next week.

Funding was withheld over financial concerns

The development comes days after National Treasury announced that it was withholding part of AbaQulusi’s July 2026 equitable share allocation, along with funding to several other municipalities across South Africa, over ongoing financial management concerns.

The equitable share is the monthly allocation that national government provides to municipalities to help fund essential services such as water, sanitation, electricity and refuse removal.

Treasury said the decision to withhold the funds was linked to municipalities’ failure to comply with key provisions of the Municipal Finance Management Act, including poor financial controls, irregular expenditure and unpaid debts to creditors such as Eskom.

Release expected once payment is processed

The measure was described as temporary, with Treasury indicating that municipalities would receive their allocations once they met the required conditions and demonstrated that they had addressed the identified shortcomings.

The latest correspondence suggests AbaQulusi has now satisfied those requirements and could receive its withheld allocation once the next payment is processed. However, the municipality will have to wait until National Treasury confirms the date of the next release before the funds are paid.

The news provided to you in this link comes to you from the editorial staff of the Vryheid Herald, a sold newspaper distributed in the Vryheid area.