National Treasury will temporarily withhold billions of rand in funding from both of the Eastern Cape’s metro municipalities due to poor management.
The Nelson Mandela Bay and Buffalo City metros will have their equitable share of the national revenue held back for continued poor financial management and non-compliance with legislation.
Treasury announced on Tuesday that it has temporarily withheld the metros’ July equitable share transfers, along with those of 68 other municipalities.
The Nelson Mandela Bay Municipality’s equitable share for the 2026/27 financial year stands at R1.74 billion, while the Buffalo City Metro has been allocated R1.29 billion.
The funds are mainly used for free basic services such as electricity, water, and sanitation for the metros’ qualifying households.
Treasury said it is withholding the July transfers to “instill fiscal discipline and ensure that public money is properly managed”.
Metros like Nelson Mandela Bay have also come under heavy scrutiny by Parliament over a lack of service delivery.
The Democratic Alliance’s (DA) leadership is also heading to Nelson Mandela Bay this week to raise issues around safety in the metro.
DA Eastern Cape leader, Andrew Whitfield, said: “The entire DA national leadership will be descending on Nelson Mandela Bay and we need you to hold hands with us as we march against violent crime in our city.”
Treasury is also withholding funds from other Eastern Cape municipalities, namely Makana, Sundays River Valley, Inxuba Yethemba, and Port St Johns.
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Babalo Ndenze
www.ewn.co.za