National Treasury suspended the funding due to the mismanagement of public funds.
The equitable share is an unconditional transfer of revenue from the national government to municipalities to subsidise basic services. The funds are paid to municipalities three times a year.
Finance Minister Enoch Godongwana said National Treasury had decided to release the funds to avoid adverse effects on the delivery of basic municipal services.
“The equitable share is an important source of funding for basic services, particularly services provided to poor households. National Treasury must therefore balance its constitutional responsibility to enforce financial management requirements with the need to avoid communities carrying the immediate consequences of failures by municipal institutions and officials,” he said.
According to Godongwana, the release of the funds is conditional and is intended to protect basic service delivery while requiring affected municipalities to correct the serious weaknesses identified through the Section 216(2) process.
Madibeng was again placed under administration in early July.
A Provincial Executive Representative (PER) and a multidisciplinary intervention team took over the municipality’s financial and council functions and introduced a financial recovery plan as per Section 139 (5) (c) of the Constitution which was published in the Provincial Gazette of Noth West on 25 June 2026.
