Municipality secures July Treasury grant as 69 municipalities face freeze
While 69 municipalities had their equitable share transfers withheld for failing to meet financial governance requirements, the Tshwane metro was found to be compliant and has secured continued funding for service delivery and infrastructure projects.
The Tshwane Metro has avoided the National Treasury’s crackdown on non-compliant municipalities after securing its July equitable share grant by meeting all legislative and financial governance requirements.
This follows after the Treasury froze July grants to 69 municipalities across all nine provinces.
According to information released by the National Treasury, many municipalities across the country have had their equitable share transfers withheld after failing to meet prescribed compliance requirements and not implementing its guidance.
The move is aimed at ensuring public money is properly managed.
It also seeks to curb unauthorised, irregular, fruitless, and wasteful expenditure, while holding municipal office-bearers accountable where required by law.
City Manager Johann Mettler said the Tshwane Metro is not among the affected municipalities, having successfully met all applicable legislative and reporting obligations.
“This milestone further demonstrates the city’s determination to safeguard public finances and ensure the uninterrupted delivery of essential municipal services.”
Mettler does not take this for granted.
“This is a notable achievement for the City of Tshwane and a clear affirmation that disciplined financial governance, accountability and compliance produce tangible results.”
He said the administration is among the metros that have remained focused on implementing the guidance of the National Treasury and strengthening internal controls to ensure that the city continues to meet every legislative obligation placed upon it.
Mettler added that compliance is not an administrative exercise but a commitment to the city’s residents.
“Securing the city’s equitable share allocation provides certainty for service delivery programmes and infrastructure investment while reinforcing public confidence in the city’s financial management,” Mettler added.
He said the city remains committed to maintaining the highest standards of governance and building a financially sustainable municipality.
“Tshwane remains steadfast in strengthening financial governance, improving accountability and ensuring prudent management of public resources.”
Mettler stated that the metro will continue working closely with the National Treasury and other oversight institutions to sustain full compliance, protect the city’s financial stability and accelerate quality service delivery for all communities.
He added that the city has also recorded another significant strong financial achievement, demonstrating continued improvement in revenue management and fiscal discipline.
“Against a projected revenue collection of R4.02-billion for June, the city collected R4.181-billion, surpassing its forecast by close to R350-million.”
He said this performance reflects sustained progress in strengthening revenue collection, improving cash flow and reinforcing the city’s financial sustainability.
“The city further exceeded its funding plan target by securing R544-million, underscoring its disciplined financial management and prudent treasury practices.
“These achievements reaffirm the city’s commitment to sound governance, improved liquidity and the responsible stewardship of public finances, positioning Tshwane on a stronger financial footing to deliver quality services to its residents.”
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