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The Portfolio Committee on Cooperative Governance and Traditional Affairs has called a high-level joint meeting to discuss National Treasury’s decision to temporarily withhold equitable share payouts for 69 municipalities.

This follows a media statement issued by the Financial and Fiscal Commission (FFC), which urged Parliament to examine Treasury’s decision to withhold equitable share payouts to 69 municipalities. The FFC stated that while it is important to hold municipalities accountable, this must be done transparently and within the parameters of the Constitution and relevant legislation. The Commission’s position is that the equitable share is an unconditional grant, and that Parliament determines how it is divided and allocated through the Division of Revenue process. Any further decisions regarding this grant must thus be made and approved through Parliament.

Noting the concerns the Commission raised, the Chairperson of the committee, Dr Zweli Mkhize, consulted the Minister of COGTA, Mr Velinkosini Hlabisa, the Minister of Finance, Mr Enoch Godongwana, the South African Local Government Association (SALGA), and chairpersons of Parliament’s oversight committees on finance, public accounts and appropriations. The committees will convene a joint meeting on Friday this week to engage the Ministers, SALGA and the FFC on this matter. The nine MECs will also be invited.

Dr Mkhize said that the aim is to help ensure focus on solutions to municipalities' challenges. 

Issued by the Parliametary Communication Services on behalf of the chairperson of the portfolio committee of Cooperative Governance and Traditional Affairs, Dr Zweli Mkhize