Category: English

National Treasury is temporarily withholding the July 2026 equitable share transfers to dozens of South African municipalities to instil strict fiscal discipline and root out financial misconduct.

The intervention follows what the department described as “persistent and serious non-compliance” with the Municipal Finance Management Act (MFMA).

“National Treasury is in the process of temporarily withholding the July 2026 equitable share transfers to selected municipalities to instil fiscal discipline and ensure that public money is properly managed; that Unauthorised, Irregular, Fruitless and Wasteful Expenditure [UIFWE] is addressed; and that municipal officials and office-bearers are held accountable where required by law.

“The decision follows persistent and serious non-compliance with the MFMA and its supporting regulations, despite support provided by the National Treasury through guidance, engagement, and formal or informal communication” the department announced in a statement on Tuesday.

The municipalities span the country’s nine provinces and include metro municipalities City of Johannesburg, Buffalo City, Nelson Mandela Bay and Mangaung.

“The temporary withholding of funds is taken in terms of section 216(2) of the Constitution, read with section 38 of the Local Government: Municipal Finance Management Act 56 of 2003 (MFMA).

“It is important to note that this is a corrective rather than punitive measure. Because the withholding of the funds will be for a short-term period, the National Treasury does not foresee any impact on service delivery,” the statement continued.

Forewarning
The affected municipalities were given “sufficient notice” ahead of the withholding of funds and were also encouraged to furnish reasons to the department why funds should not be withheld.

“Prior to the withholding of funds, National Treasury has provided support to municipalities through the issuance of MFMA Circulars which guide municipalities on what they must do to ensure compliance with specific provisions of the MFMA and its regulations; through one-on-one municipal engagements; and various training interventions either directly with the municipalities or through national or provincially facilitated forums.

“Despite these support interventions, many municipalities are still failing to comply with the provisions of the MFMA and its supporting regulations insofar as they relate to adopting funded budgets, addressing UIFWE and ensuring that statutory commitments are met when due,” the statement noted.

The department warned of the broader economic consequences of mismanagement, pointing out that municipal failures directly destabilise critical national entities and bulk utility providers.

“Non-compliance with the legislation is not only a dereliction of fiduciary duties by the political and administrative leadership of municipalities, but it is also threatening the financial sustainability of bulk suppliers (water boards and Eskom).

“In addition, failure to pay third parties negatively impacts on the ability of statutory bodies to continue operating optimally. The statutory bodies referred to are the Auditor-General of South Africa [AGSA], the South African Revenue Services [SARS], and the Financial Sector Conduct Authority [FSCA],” the statement read.

Consequence management
National Treasury also highlighted lapses in consequence management, noting that many Municipal Public Accounts Committees (MPACs) are failing to function effectively.
Additionally, some municipalities “failed to show that consequence management is being implemented, including on a timely basis”.

“Some of the municipalities have failed to properly deal with UIFWE as the MFMA requires municipalities to investigate such expenditure, determine accountability, recover losses where appropriate and take corrective action.

“National Treasury has found that many municipalities have not processed UIFWE cases through their MPACs which are responsible for overseeing accountability in some municipalities. This means MPACs are not functioning effectively,” the department said.

Turning to the AGSA’s 2024/25 Consolidated general report on Local Government Audit Outcomes, the department noted that:
•    Since 2021-22, municipalities have incurred a total of R24.12 billion in fruitless and wasteful expenditure;
•    Since 2021-22, municipalities and their municipal entities have incurred irregular expenditure of R145.21 billion; R40.14 billion was incurred in 2024-25 alone;
•    Since 2021-22, municipalities have disclosed a total of R118.13 billion in unauthorised expenditure, R63.43 billion (54 per cent) of which was on non-cash budget items;
•    Budget credibility continued to deteriorate. In 2024-25, 116 municipalities (45 per cent) adopted unfunded budgets – up from 113 (44 per cent) in the previous year’s adjusted budget;
•    By the 2024-25 year-end, municipalities owed interest of R3.40 billion to Eskom and R1.21 billion to water boards; and
•    Late payments also extended to payments of contributions and third-party deductions. A total of 48 municipalities (20 per cent) had third-party deductions that were overdue for more than one month.

“This further demonstrates persistent failure to comply with the legal framework, including the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003).

“Transfers will resume once the affected municipalities meet the required conditions and submit proper proof of the conditions being met.

“National Treasury will keep working with municipalities, provincial treasuries, and cooperative governance structures to strengthen sound financial management,” the statement concluded. – SAnews.gov.za

KwaZulu-Natal Cooperative Governance and Traditional Affairs MEC Thulasizwe Buthelezi has pledged decisive intervention in ongoing disputes between mining companies and traditional leaders in the Amajuba District.

The commitment follows concerns raised by Amakhosi over mining companies operating without adequately consulting traditional leadership and local communities.

Buthelezi recently convened a stakeholder meeting with traditional leaders in Dannhauser, where Amakhosi outlined a range of concerns relating to irresponsible mining activities across the region.

The meeting, attended by all local Amakhosi and led by iNkosi Zwane, was called to address what traditional leaders described as serious governance failures by mining companies operating within traditional jurisdictions.

The Amajuba District, which comprises Newcastle, Dannhauser and eMadlangeni, is a major coal-mining region.

During the engagement, traditional leaders said mining companies frequently commence operations without informing or consulting them, leaving Amakhosi unable to respond to questions from community members seeking accountability.

Inkosi Malambule Gule argued that traditional leaders should be recognised as formal stakeholders in the mining licensing process.

“No mining licences should be issued without explicit consultation with the local iNkosi,” Gule said.

Gule also emphasised the urgent need to address the environmental degradation caused by unregulated mining activities.
Amakhosi further called for strengthened unity among traditional leaders and appealed to the MEC to assist in securing agricultural support, saying limited access to resources has hindered their ability to promote community farming initiatives despite their willingness to do so.

Responding to the concerns, Buthelezi expressed deep concern over the current situation, noting that existing agreements with mining companies were failing to deliver meaningful benefits to traditional councils or local communities.

“It is unacceptable that mining companies extract wealth from the land while leaving the traditional council and the community with nothing. We need total unity among Amakhosi and must actively discourage associations that seek to divide the traditional leadership,” the MEC said.

Buthelezi also called for long-term structural and legislative reforms to protect the institution of traditional leadership.

He committed to convening a comprehensive follow-up meeting involving all Amakhosi in the Amajuba District, relevant family structures, mining companies and government stakeholders to chart a transparent and legally binding framework for future engagement. – SAnews.gov.za

Finance Minister Enoch Godongwana has called for a data-driven, evidence-based approach to tackling South Africa’s youth unemployment challenge.

The Minister delivered remarks at the Government Technical Advisory Centre Public Economics Conference held under the theme: “Counting the Crisis: Data, Evidence and Solutions for Youth Unemployment in South Africa”.

“The focus of the conference also reminds us of three important things.

“First, that we must be honest about the scale of the crisis. Second, that we must pursue a holistic understanding of the challenge of unemployment. Meaning that the figures must be held in the same breath as the people and lives behind them.

“Thirdly, the theme compels us to move beyond describing the problem and expressing our concern to evidence, to implementing solutions-driven evidence,” Godongwana said on Tuesday.

According to Statistics South Africa’s Quarterly Labour Force Survey released in May, youth unemployment stands at 60.9% for those aged 15-24 with an unemployment rate of 40.6% for those aged 25-34 – numbers the Minister characterised as “stark”.

“We must, however, be careful. Data should not produce fatalism. Data must produce better decisions. If we count the crisis only to repeat how serious it is, then we have not done enough.

“We must count what works, what does not work, who is being reached, who is being missed, what the fiscal cost is, what can be scaled, and what should be redesigned,” Godongwana said.

He added that the challenge of youth unemployment must also be targeted with a faster-growing inclusive economy.

“But growth will not happen by itself. It requires reform. Reform requires implementation. Implementation requires capable institutions.

“And capable institutions require credible public finances, good data, accountability and discipline,” the Minister said.

Youth in action

He told the youth participants at the conference to approach it with critical thinking – urging them not to “accept easy answers…slogans from government, business, from your university professors or the leaders of NGOs”.

“You are not here only to listen to older people discuss your future. You are here because South Africa needs your intellect, your discipline and your honesty.

“We need young economists, data scientists, public managers, social scientists, engineers, researchers and practitioners who can combine empathy with evidence. We need people who can look at a spreadsheet and still see a human being.

“[Continue] to ask hard questions. Ask what works. Ask who benefits. Question what the trade-offs are, and what the evidence is saying. Ask what must change in the state, in firms, in universities, in communities, and in the way we use public money,” the Minister urged.

He also encouraged young people to come up with solutions that can turn around the challenges they face.

“South Africa needs a generation that can move from critiquing the situation to providing the solutions.

“The same message goes to all of the other participants. The public servants, business leaders and civil society partners. Use this platform to forge a way genuine forward,” Godongwana said. – SAnews.gov.za

The Electoral Commission is hosting a series of orientation workshops across all nine provinces to assist registered political parties and prospective independent candidates in using the Online Candidate Nomination System (OCNS) ahead of the 2026 Local Government Elections in November.

Commencing on Tuesday, 7 July, in Limpopo, the Electoral Commission’s nationwide orientation workshops will equip registered political parties and prospective independent candidates with the practical knowledge to use the OCNS. 

“Participants will learn how to capture candidate and supporter information, pay election deposits electronically, and receive early feedback on the voter registration status of candidates and supporters before the official nomination period opens,” the Electoral Commission said in a statement. 

The Commission has invited members of the media to attend the Gauteng session, where the Commission will demonstrate the functionality of the OCNS and provide guidance on the candidate nomination process to avoid last-minute challenges. 

The OCNS, which became operational on 21 June 2026, enables registered political parties and prospective independent candidates to prepare in advance for the nomination process.

The system is an official platform managed by the Electoral Commission of South Africa (IEC) that enables political parties and independent candidates to capture and manage candidate lists, upload supporting documentation, and process payments for elections.

The system also provides reporting tools to monitor the progress of nominations, ensuring transparency and efficiency throughout the nomination process. – SAnews.gov.za

The Government of South Africa, through the Inter-Ministerial Committee (IMC) on Migration, has noted with deep sadness the passing of a Malawian national during the ongoing repatriation operation. 

In a statement on Tuesday, Government conveyed its condolences to the families and the Government and people of Malawi. 

“On behalf of Government and the people of South Africa, we convey our heartfelt condolences to the bereaved family, loved ones, fellow travellers and the Government and people of the Republic of Malawi during this difficult time,” Government said. 

Preliminary reports indicate that the deceased was among the passengers aboard a Malawi bound bus that had been loaded and departed the repatriation processing centre.  

Approximately 10 kilometers from the centre, the passenger tragically passed on, prompting the driver to turn the bus around and return to the processing centre. Upon the return of the bus to the centre, the South African Police Service (SAPS) was immediately called to the scene to conduct the requisite police procedures, including forensic examination, in line with standard protocols governing sudden and unexplained deaths. 

“Government wishes to reassure the family of the deceased, the Malawian authorities and the public that all necessary processes were undertaken with the utmost professionalism, dignity and respect for the deceased. Following the completion of the police and forensic work, the bus was formally released by SAPS and departed the scene at midnight, enabling the remaining passengers to continue their journey home,” Government said. 

Government said that the circumstances surrounding this unfortunate incident will be communicated to the Malawian authorities through the appropriate diplomatic channels. 

Government said it stands ready to provide any support required to assist the family of the deceased. 

“Once again, we extend our sincere sympathies to the family of the deceased and to the Government and people of Malawi,” the statement said. – SAnews.gov.za 

The Department of Women, Youth and Persons with Disabilities, has appointed technology leader and digital transformation advocate, Lady Mariéme Jamme as the department’s Special Envoy for Technology and Artificial Intelligence (AI).

The appointment was announced during a recent AMC Davos 2026 gathering in Tianjin, China, by the Office of the Minister in the Presidency for Women, Youth and Persons with Disabilities, Sindisiwe Chikunga.

According to the department, the appointment reflects South Africa’s commitment to ensuring that women, youth and persons with disabilities are empowered to participate fully in the digital economy and to help shape the future of ethical, inclusive and human-centred artificial intelligence.

The department said the appointment aligns with its mandate to advance the socio-economic empowerment, inclusion and rights of women, youth and persons with disabilities, while supporting the country’s vision of a digitally inclusive society, where technological innovation drives opportunity, equality, economic participation and sustainable development.

It said the announcement comes as governments, business leaders and multilateral organisations intensify global engagement on artificial intelligence, digital transformation and the future of work.

“The appointment comes at a pivotal moment as governments, business leaders, investors and multilateral organisations accelerate global dialogue on artificial intelligence, digital transformation and the future of work,” the department said in a statement on Saturday.

In her honorary, strategic and non-executive role, Jamme will serve as South Africa’s global representative and adviser on technology diplomacy, responsible AI governance and digital inclusion.

Her responsibilities will include supporting South Africa’s engagement with governments, multilateral institutions, academia, investors and industry leaders, with a focus on technology diplomacy, workforce readiness, innovation ecosystems and strategic partnerships that advance the country’s development priorities and the Sustainable Development Goals (SDGs).

The department said the appointment reflects South Africa’s commitment to ensuring that Africa’s expertise, priorities, and lived experiences are represented in shaping international AI policy, governance, and innovation.

“Her appointment reflects South Africa’s conviction that artificial intelligence must serve humanity and that its future cannot be shaped by only a handful of countries or institutions. It must also reflect the voices and aspirations of Africa, women, young people, persons with disabilities and communities that have historically been excluded from technological progress.”

Shaping the future of technology

Chikunga said the appointment demonstrates government’s commitment to ensuring that women, youth and persons with disabilities are at the forefront of the digital economy and are empowered to shape the future of technology.

“The appointment of Lady Mariéme Jamme as Special Envoy for Technology and Artificial Intelligence reflects our commitment to advancing ethical, inclusive and human-centred artificial intelligence while strengthening South Africa’s leadership in global technology diplomacy.

“Her extensive experience in digital transformation, innovation and skills development, together with her deep commitment to empowering communities across Africa and beyond, will help us build strategic partnerships that advance our national priorities, create opportunities for all, and ensure that no one is left behind in the digital age,” the Minister said.

Jamme said artificial intelligence is redefining power, productivity and possibility across the world. However, she warned that technology without ethics, inclusion and human dignity, risks widening inequality rather than reducing it.

She expressed her appreciation to the South African Government and Minister Chikunga for the confidence placed in her.

“This appointment is an opportunity to strengthen Africa’s contribution to global AI governance and to ensure that innovation expands opportunity, protects human dignity and creates lasting prosperity for women, young people and underserved communities. Together, we can help build an AI future that leaves no one behind,” Jamme said.

About Lady Mariéme Jamme

Lady Mariéme Jamme is an internationally recognised technology leader, AI strategist and advocate for inclusive digital transformation. Over more than two decades, she has advised governments, multilateral organisations, investors and private-sector leaders on technology policy, digital transformation and innovation across Africa and globally.

She is the Founder and CEO of iamtheCODE, an African-led global movement operating in nearly 90 countries that equips women and girls with coding, artificial intelligence, digital literacy and future-of-work skills, particularly in underserved and crisis-affected communities. – SAnews.gov.za
 

The Department of Home Affairs says the temporary voluntary repatriation support operation at the Epping Refugee Reception Office in the Western Cape has been concluded and that the office resumed its normal operations on Monday.

This after the department successfully transferred foreign nationals, who requested voluntary repatriation from the Epping Refugee Reception Office in the Western Cape to the Musina Repatriation Centre in Limpopo over the weekend.

“Approximately 1 800 Zimbabwean nationals, including women and children, arrived at the Epping Refugee Reception Office on 21 June 2026. They were later joined by Malawian nationals who also requested voluntary repatriation,” the Department of Home Affairs said in a statement.

In total, 3 252 individuals were processed, comprising 3 155 Zimbabwean nationals and 97 Malawian nationals.

Following coordinated efforts by the Department of Home Affairs, the City of Cape Town, civil society and faith-based organisations to facilitate the transfer of those requesting voluntary repatriation, the temporary operation at the Epping Refugee Reception Office concluded. All humanitarian assistance at the site was concluded at 06h00 on Sunday, 5 July 2026.

“Foreign nationals seeking voluntary repatriation should no longer report to the Epping Refugee Reception Office. Requests for voluntary repatriation should now be directed to the relevant consulate for assistance,” the department said. – SAnews.gov.za