The National Treasury has temporarily frozen its July equitable share transfers to 75 municipalities due to persistent financial irregularities and wasteful spending.

This decision impacts under-resourced areas across Gauteng, the Free State, Eastern Cape, KwaZulu-Natal, Limpopo, Mpumalanga, North West, Northern Cape, and Western Cape.The freeze follows allegations of R145bn in irregular expenditure and R24bn in fruitless spending by municipalities.

Affected entities include Johannesburg, Emfuleni, Rand West City, Sedibeng, Mangaung, Matjhabeng, Buffalo City, Nelson Mandela Bay, and several others.Treasury highlighted that 16 municipalities owe money to pension funds, 18 to Eskom, and 13 have debts with SARS and water boards.The move aims to address systemic financial mismanagement that jeopardizes service delivery to indigent households.

Unconditional grants are meant to support essential services like water, electricity, and sanitation, but poor allocation has led to significant losses.The decision underscores ongoing challenges in local governance and fiscal responsibility.