NELSON MANDELA BAY MUNICIPALITY NOTES NATIONAL TREASURY'S TEMPORARY WITHHOLDING OF JULY 2026 EQUITABLE SHARE TRANSFER AND IS IMPLEMENTING CORRECTIVE MEASURES
Published: July 08, 2026<< BACK TO NEWS
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The Nelson Mandela Bay Municipality acknowledges the temporary withholding of the July 2026 equitable share transfer to selected municipalities, including Nelson Mandela Bay.
The Municipality wishes to assure residents, businesses, investors and all stakeholders that this intervention is administrative and corrective in nature, as confirmed by the National Treasury, and does not constitute a declaration that the Municipality is financially insolvent or incapable of delivering services. The National Treasury has further indicated that the temporary withholding is intended to promote compliance with the Municipal Finance Management Act (MFMA) and strengthen financial governance.
The Municipality respects the constitutional and legislative oversight role of the National Treasury and remains fully committed to working collaboratively with both National Treasury and the Provincial Treasury to satisfy all conditions required for the release of the temporarily withheld allocation.
Importantly, the Municipality has already commenced implementing a comprehensive programme of financial governance reforms aimed at strengthening compliance with the MFMA, improving financial oversight, enhancing consequence management and ensuring that all matters relating to unauthorised, irregular, fruitless and wasteful expenditure are dealt with in accordance with applicable legislation.
The City is also prioritising the improvement of its financial sustainability through strengthened revenue management, expenditure controls, enhanced governance systems and improved oversight by Council and its oversight structures.
Residents should be assured that the Municipality has activated the necessary internal governance processes to address the matters raised by the National Treasury. A dedicated multidisciplinary team is engaging directly with National Treasury to ensure that all outstanding requirements are addressed as expeditiously as possible.
The Municipality further wishes to reassure communities that every effort is being made to minimise any potential impact on municipal operations and service delivery. Essential services, including water, sanitation, electricity, waste management, emergency services and other frontline municipal services, remain the Municipality's highest priority.
The Executive Mayor, together with the Municipal Council and the Administration, remains fully committed to restoring full compliance with the applicable legislative framework, strengthening institutional governance and ensuring prudent stewardship of public resources.
The Municipality views this process as an opportunity to further strengthen financial management systems and reinforce public confidence in the institution.
Nelson Mandela Bay Municipality remains committed to transparency, accountability, good governance and responsible financial management in the best interests of all residents.
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