42 Municipalities Regain National Treasury Approval, Johannesburg Gets R2.6 billion Payment

• National Treasury reinstated funding for 42 of the 69 municipalities it had previously blacklisted over financial misconduct
• Johannesburg is among the municipalities that received part of their July equitable share allocation amid a deepening debt crisis
• The remaining 27 municipalities must still meet compliance conditions before Treasury will release their withheld funds

PRETORIA — National Treasury has reinstated equitable share funding for 42 municipalities that were previously disqualified due to irregular or wasteful expenditure, broadcaster eNCA reported on 20 July 2026.

The equitable share is a government grant disbursed to municipalities three times a year. Earlier this year, Treasury announced it would withhold payments to 69 local governments that had failed to meet financial governance requirements. Of those, 42 have now satisfied the conditions necessary to unlock their allocations, while the remaining 27 must still address outstanding compliance failures before receiving their funds.

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Johannesburg gets partial payment amid Eskom crisis

The City of Johannesburg is among the municipalities that have received funding, though only a portion of its allocation was released. The city received R2.6 billion, earmarked specifically to settle outstanding creditor obligations. Mayor Dada Morero had previously indicated that the full equitable share payment would be directed towards debts owed to Eskom and bulk water provider Rand Water.

Johannesburg currently owes Eskom R5 billion, and the power utility has been consulting on whether to cut off electricity supply to the city entirely. Prior to the funds being disbursed, Mayor Morero warned that Johannesburg's cash reserves would sustain operations for only 12 days in the event of an unexpected financial emergency. The partial payment provides some breathing room as the city works to stabilise its finances and manage commitments to state-owned enterprises.

Treasury ties future payments to compliance

National Treasury stressed that adherence to financial regulations remains a firm requirement for any municipality seeking to have withheld funds released. The department said it would conduct regular evaluations to monitor compliance levels across all provinces before making further decisions on grant distributions for the remainder of the financial year. The fiscal oversight drive is aimed at improving service delivery for residents in underserved communities across South Africa, where poor municipal management has long been cited as a key obstacle to basic services.

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Watch eNCA's report on the 42 municipalities regaining Treasury approval:

Municipalities pocketing employees' pensions

In a related article, Briefly News reported on Godongwana's recent announcement regarding the withholding of equitable share allocations from noncompliant municipalities due to the mismanagement of workers' pension funds. This decision comes as part of a broader effort to ensure accountability and financial stability within local governance.

Source: Briefly News