Municipalities that have had their equitable share withheld by National Treasury will need to address unfunded budgets. This is according to the National Treasury, which briefed the media yesterday after announcing that 69 municipalities have had R13.5 billion of equitable share for July suspended due to failure to comply with the Municipal Finance Management Act. It says the municipalities should put in place a payment plan to key creditors and show how they will reduce wasteful expenditure.

The withheld amount represents about 12% of R110 billion on total equitable share allocation. To look at the implications of this, we are now joined a local governance expert and Managing Director of Ntiyiso's Revenue Consulting Division, Thabiso Ndebele.

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