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Treasury lifts funding freeze but tells municipalities to comply before December

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By Thebe Mabanga

National Treasury will release the remaining R7.1 billion of the R13.5 billion in Local Government Equitable Share allocations withheld at the beginning of July, but Finance Minister Enoch Godongwana has warned that municipalities remain under pressure to comply with financial management requirements before the next quarterly transfer in December.

“National Treasury will commence releasing the remaining withheld July 2026 Local Government Equitable Share transfers from 31 July 2026,” Godongwana announced during a media briefing alongside Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa.

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Of the 69 municipalities affected by the withholding of funds, 20 have already met the required conditions and received their transfers. Of the remaining 49, 21 will receive partial transfers while the other 28 will receive their full allocations.

The City of Johannesburg, which initially had R3.5 billion withheld, will

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