The National Treasury has decided to temporarily release R7bn in equitable shares to 69 municipalities to prevent disruptions in basic service delivery.

Minister Enoch Gondongwana confirmed that the release, starting from July 31, follows a review of compliance monitoring after funds were initially withheld in July.The decision comes after the Treasury withheld R13.5bn from municipalities that failed to meet repayment agreements with creditors.

While the release is not a sign of full compliance, it aims to avoid short- to medium-term impacts on essential services like water, electricity, and sanitation.Gondongwana emphasized that municipalities must still address the identified weaknesses, with compliance letters to be sent by December 2026.Cogta minister Velenkosi Hlabisa reiterated the need for municipalities to end unfunded budgets, warning that such practices mislead the public.

The move highlights ongoing challenges in municipal financial management and the government's efforts to balance service delivery with fiscal responsibility.