{"id":116276,"date":"2026-07-08T11:29:13","date_gmt":"2026-07-08T11:29:13","guid":{"rendered":"https:\/\/www.artikels.afriforum.co.za\/?p=116276"},"modified":"2026-07-08T11:37:22","modified_gmt":"2026-07-08T11:37:22","slug":"withholding-of-municipal-grants-confirms-widespread-governance-failures-afriforum","status":"publish","type":"post","link":"https:\/\/www.artikels.afriforum.co.za\/en\/withholding-of-municipal-grants-confirms-widespread-governance-failures-afriforum\/","title":{"rendered":"Withholding of municipal grants confirms widespread governance failures \u2013 AfriForum"},"content":{"rendered":"\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.artikels.afriforum.co.za\/wp-content\/uploads\/2026\/07\/Morne-Mostert_8-July-2026_ENG.mp3\"><\/audio><figcaption class=\"wp-element-caption\">Soundbite: Morn\u00e9 Mostert (English)<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.artikels.afriforum.co.za\/wp-content\/uploads\/2026\/07\/Morne-Mostert_8-Julie-2026_AFR.mp3\"><\/audio><figcaption class=\"wp-element-caption\">Soundbite: Morn\u00e9 Mostert (Afrikaans)<\/figcaption><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>According to AfriForum, the National Treasury\u2019s decision to temporarily withhold R13,5 billion in equitable share allocations from 69 municipalities for July serves as proof of the extent of financial mismanagement and non-compliance at local government level. AfriForum, however, warns that the government\u2019s eventual corrective action against municipalities that repeatedly fail to meet their legal obligations will only be effective if accompanied by meaningful reform.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Morn\u00e9 Mostert, Manager for Local Government Affairs at AfriForum, says the Treasury\u2019s actions demonstrate that the municipalities in question have failed to comply with fundamental financial management requirements. \u201cCommunities have been living with the consequences of these failures for years \u2013 manifesting in, among other things, deteriorating infrastructure, failing water and electricity services, sewage spills and poor refuse removal,\u201d says Mostert.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He, however, emphasises that withholding the equitable share allocations amounts to a double punishment for residents who must first endure the burden of poor municipal service delivery and will now suffer further due to the withholding of those allocations. \u201cWhile fiscal discipline is essential, communities should not bear the consequences of poor governance by municipal councils and officials,\u201d he explains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe withholding of grants merely highlights the \u2018symptoms\u2019 of municipal failures, not the underlying disease. The real crisis lies in poor governance, weak oversight and a persistent lack of accountability. Unless these issues are addressed, municipalities will simply continue moving from one financial crisis to the next.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AfriForum maintains that Treasury will not be able to restore municipalities on its own. The organisation, therefore, calls on the Department of Cooperative Governance and Traditional Affairs (Cogta) to utilise available constitutional intervention mechanisms \u2013 in collaboration with provincial governments \u2013 where municipalities repeatedly fail to meet their obligations. In cases where municipalities also fail to comply with recovery measures, stricter interventions should be implemented in terms of Section 139 of the Constitution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mostert also insists that senior municipal officials who repeatedly fail to fulfil their statutory duties, disregard the requirements of the Municipal Finance Management Act, or contribute to financial collapse should face disciplinary action or, if necessary, civil or criminal penalties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe era of consequence-free municipal failure must come to an end. Government has now acknowledged that a serious governance crisis is plaguing municipalities. Decisive action against those responsible must now follow, along with restoring municipalities to institutions capable of delivering basic services to the communities they are meant to serve. Communities deserve functional municipalities \u2013 not endless recovery plans that yield no meaningful change,\u201d Mostert concludes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to AfriForum, the National Treasury\u2019s decision to temporarily withhold R13,5 billion in equitable share allocations from 69 municipalities 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