On 21 October 2026, National Treasury published the Draft Public Finance Management and Related Laws Amendment Bill, 2026 (the PFMA Amendment Bill) and the Draft Local Government: Municipal Finance Management Amendment Bill, 2026 (the MFMA Amendment Bill) for public comment. These Bills propose significant amendments to South Africa's existing legal framework for public financial management. 

The PFMA Amendment Bill proposes to repeal the Exchequer Act 66 of 1975 and amend the Financial and Fiscal Commission Act 99 of 1997, the Public Finance Management Act 1 of 1999 (the PFMA), the Public Audit Act 25 of 2004 and the Money Bills and Related Matters Act 9 of 2009. Key proposals include:

Provisions regarding fiscal sustainability and the preparation, submission, tabling, approval and monitoring of a fiscal plan.

National Treasury would be empowered to instruct institutions to stop or suspend supplier payments where there are reasonable grounds to suspect corruption, fraud or other criminal conduct. The PFMA Amendment Bill also provides for the suspension of transfers to provinces and institutions in the event of a serious or persistent breach of treasury control measures, as well as the issuing of compliance orders and the statutory establishment of the Office of the Accountant-General within National Treasury.

Provisions empowering the Minister of Finance to intervene in financially distressed public entities and the appointment of an administrator where a financially distressed or non-compliant public entity fails to remedy its position following a directive.

The chief executive officer or other person in charge of a public entity would becoming its accounting officer, while boards or controlling bodies would retain specified fiduciary duties.

A Financial Misconduct Investigation Committee to investigate referred allegations and refer suspected criminal offences to law enforcement agencies. Disciplinary structures would also be able to impose administrative fines, subject to a maximum determined by the Minister.

In turn, the MFMA Amendment Bill proposes amendments to the Local Government: Municipal Finance Management Act 56 of 2003 (the MFMA), along with related amendments to the Municipal Systems Act 32 of 2000 (MSA) and Municipal Property Rates Act 6 of 2004.

Among other things, the MFMA Amendment Bill aims to:

• strengthen Treasury oversight of municipal finances, budget processes and reporting;
• expand the definition of budget-related policies and significantly amend the definition of “irregular expenditure” by substituting the current definitions;
• extend the liability for irregular or fruitless and wasteful expenditure to suppliers;
• incorporate provisions on tariffs, customer care, credit control and debt collection from the MSA into the MFMA, including requirements for accurate accounts, accessible billing-query and complaints mechanisms, and an indigent management policy;
• provide for National Treasury oversight of the appointment of chief financial officers, protect officials against unauthorised and/or unlawful instructions, and strengthen internal audit and risk management matters;
• strengthen financial recovery and intervention arrangements, including the temporary transfer of officials’ financial management powers to an administrator or designated person and the divestment of the chief financial officer and officials exercising financial management functions of those powers and functions to the extent necessary to give effect to an intervention; and
• establish a Municipal Financial Misconduct Investigation Committee and enable the Minister to impose personal administrative monetary penalties for specified misconduct by councillors, municipal entity board members and officials, subject to notice and an opportunity to make representations.

Members of the public and interested stakeholders are invited to submit written comments on the PFMA Amendment Bill and the MFMA Amendment Bill. 

The closing date for comments is Friday, 29 January 2027.

Click here for the PFMA Amendment Bill and click here for the MFMA Amendment Bill.

Written by Rodney Africa, Adriano Esterhuizen, Danica Jonker, Ricky Mathebula, Zenande Kirabira, Sophie Hertantyo at Webber Wentzel