The National Treasury says the total equitable share withheld for all 69 municipalities stands at around R13.5 billion.

It says the release of the funds will depend on how quickly the municipalities can sign repayment agreements with their creditors which include, water boards, Eskom and pension funds.

According to National Treasury, the main aim of temporarily withholding the equitable share is to arrest the culture of non-payment.

Deputy Director-General Ogalaletseng Gaarekwe says the intervention will not interfere with the delivery of basic services.

“What we are requesting those municipalities is the payment plan being signed by themselves and those creditors, once they give us that we’ll release a portion of the money properly – one third to go pay those accounts as agreed with the creditors.”

“Once they provide proof then we release the money, that means the money could be withheld for two weeks only, it depends how fast the municipality acts. With regards to how much we’ve only withheld R13,5 billion,” adds Gaarekwe.

VIDEO | Treasury freezes funding for 69 municipalities

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