ULUNDI, 07 July 2026 – The KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs, led by MEC Reverend Thulasizwe Buthelezi, takes note of the media statement issued today by the National Treasury regarding the temporary withholding of the July 2026 equitable share transfers to selected municipalities nationwide.
Among those listed are seven KwaZulu-Natal municipalities: iMpendle, uMzinyathi District Municipality, Newcastle, eMadlangeni, Amajuba District Municipality, AbaQulusi, and uMkhanyakude District Municipality.
KZN COGTA respects the constitutional mandate of the National Treasury under Section 216(2) of the Constitution and Section 38 of the Municipal Finance Management Act (MFMA) to instill fiscal discipline and ensure the prudent management of public money.
The department aligns itself with the principle that weak governance, Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE), and a lack of consequence management cannot be tolerated if we are to professionalise local government.
MEC Reverend Thulasizwe Buthelezi has emphasised that this corrective measure serves as an urgent wake-up call for the political and administrative leadership of the affected KZN municipalities.
“Our focus is to ensure that local governance in KwaZulu-Natal is ethical, sustainable, and financially sound. While the withholding of funds is a serious measure, KZN COGTA is already actively addressing governance issues across these regions. For example, a formal constitutional intervention was recently implemented in the iMpendle Local Municipality to address persistent challenges. We will widen and intensify our institutional support across all affected councils to ensure they fully comply with Treasury regulations.”
The Department wishes to reassure the residents of the affected districts and local municipalities that, because this withholding is designed as a short-term corrective action, immediate service delivery disruptions are not anticipated. KZN COGTA will, however, closely monitor municipal operations on the ground to safeguard essential basic services.
o ensure the rapid release of the withheld funds, KZN COGTA in close collaboration with the KZN Provincial Treasury is immediately dispatching specialised municipal finance and governance experts to the affected municipalities. These teams will assist the respective leaderships in urgently rectifying the compliance shortfalls highlighted by the National Treasury, particularly regarding:
1. The adoption of realistically funded budgets.
2. The functional operationalisation of Municipal Public Accounts Committees (MPACs) to process outstanding UIFWE cases.
3. The swift implementation of consequence management protocols in accordance with Chapter 15 of the MFMA.
KZN COGTA remains committed to fostering strong intergovernmental relations and building highly capable, responsive local government structures that serve the best interests of the people of KwaZulu-Natal.
ENDS
