Finance Minister Enoch Godongwana gives R7.1 billion to failing municipalities

• The National Treasury will release R7.1 billion in previously withheld allocations to municipalities, but warns that further funding may be withheld if they fail to improve their financial management.
• The funding release is part of a comprehensive assessment process, where municipalities were required to submit plans to settle debts, reduce unauthorised expenditure, and enter into payment arrangements with creditors.
• The Treasury's decision to release the funds ahead of local government elections on 4 November aims to prevent municipalities from collapsing, but the Finance Minister has made it clear that municipalities are not yet off the hook and will be required to perform to receive further funding.