North West Treasury Warns Municipalities Over Wasteful Spending Before December 2026 Payment

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October 28, 2026

The North West Provincial Treasury said it has stepped up work to deal with unauthorised, irregular, fruitless and wasteful spending in the province’s municipalities.

According to SAnews, the push includes the Department of Cooperative Governance and Traditional Affairs (COGTA), the South African Local Government Association (SALGA) and municipalities across the province.

“Municipalities must move beyond reporting UIFW balances to implementing tangible systems that prevent irregularities, recover losses where applicable and hold those responsible accountable. The focus must be on measurable progress, supported by evidence and effective oversight,” said Linda Nengovhela, Chief Director for Municipal Financial Management at Provincial Treasury.

The treasury said the aim is to check how far municipalities have come in clearing old balances of this spending. It also wants to find compliance problems that are still open and put practical fixes in place.

Municipalities are expected to show proof of progress on their outstanding balances, the treasury said. Any spending they write off must be lawful and backed by proper records.

They must also take action against officials where needed. Municipal Public Accounts Committees (MPACs) and councils are expected to show they are doing proper oversight.

The work comes as National Treasury steps in on the withholding of equitable-share transfers to municipalities. The government said the meetings aim to help municipalities fix weak spots before the December 2026 equitable-share payment.

Section 216(2) of the Constitution allows transfers to an organ of state to be stopped. This applies when there is a serious or persistent breach of rules meant to keep spending open and under control.

Nengovhela pointed to the Greater Taung Local Municipality as an example of progress on irregular spending. She said more work is still needed there on fruitless and wasteful spending.

She also said Section 32 of the Municipal Finance Management Act should be used where it applies. This section makes sure that such spending is investigated and dealt with under the law.

Nengovhela called on MPACs to check municipal finances closely and look into open cases. She said they should support accountability through the right council processes.

The treasury said outgoing MPACs and other municipal structures must keep reliable records. They must also hand over open matters properly to the people who take their place.

Provincial Treasury said equitable-share money is an important source of funding for municipalities. It helps them provide basic services to communities.

“Effective financial management is a timely corrective action and therefore critical not only for compliance and accountability, but also for protecting municipal service delivery,” the department said.

Municipalities that fail to meet the rules may face further steps, the treasury said. This includes National Treasury possibly holding back the December 2026 equitable-share tranche, subject to legal processes.

Source: this article is based on reporting by SAnews.gov.za. Image: GCIS via SAnews.gov.za. Written with the help of AI and published by the Tzaneen Voice News desk. See our Editorial Standards.