National Treasury has temporarily withheld R24.12bn in equitable share transfers to 69 municipalities to address persistent fruitless and wasteful expenditure (UIFWE).This measure aims to enforce fiscal accountability and ensure proper management of public funds.Since 2021/22, municipalities have incurred R24.12bn in UIFWE, with R40.14bn recorded in 2024/25 alone.The Treasury's intervention seeks to instil discipline, investigate cases thoroughly, and recover losses from accountable individuals.

However, the South African Municipal Workers’ Union (Samwu) warns that this could push struggling municipalities closer to collapse, affecting service delivery.The South African Local Government Association (Salga) emphasizes the need for balance between compliance and municipal financial sustainability.

The move underscores the urgency of addressing weak governance and ensuring municipalities meet statutory obligations to prevent further fiscal mismanagement.