National Treasury has rejected claims by Rand West City Local Municipality (RWCLM) that it was incorrectly listed among municipalities facing the temporary withholding of their Local Government Equitable Share (LGES), stating that the decision was based on established compliance criteria.

The Randfontein Herald reached out to National Treasury for comment on RWCLM’s claims, which have since been clarified that the municipality’s inclusion was due to its failure to meet specific financial compliance requirements.

Their response, sent on Thursday, July 23, follows a recent statement from RWCLM in which the municipality maintained that it had met all financial obligations and was wrongly included among 69 municipalities flagged for non-compliance.

• Read the initial article here: Rand West City placed on Treasury’s funding freeze list a ‘mistake’

According to Treasury’s statement, municipalities are required to comply with the Municipal Finance Management Act (MFMA), which requires them to pay creditors within 30 days of receiving invoices, unless the amounts are disputed.

Treasury stated that RWCLM has persistently failed to meet this requirement.

“The criteria for temporarily withholding the Local Government Equitable Share include persistent non-compliance with Section 65(2)(e) of the MFMA,” their statement read.

“Rand Water has reported to National Treasury that the municipality persistently does not pay its bulk water account.”

The statement contradicts RWCLM’s earlier claim that its account with Rand Water was fully up to date and that no outstanding amounts remained following a debt settlement agreement concluded in December 2025.

The withholding of the Equitable Share could have implications for service delivery in Rand West City, as the allocation forms an important part of municipal funding for basic services.

Engagements between RWCLM and National Treasury are expected to continue as the municipality seeks to have the decision reconsidered.