The National Treasury is set to implement stricter controls over the appointment of chief financial officers (CFOs) in local municipalities, as part of broader reforms to enhance financial accountability. The proposal, outlined in the 2026 Medium Term Budget Policy Statement, seeks to shift decision-making power from municipal councils to the national level. This move follows years of criticism over weak financial management and corruption in local government.
The proposed changes to the Municipal Finance Management Act (MFMA) would require provincial governments to vet and recommend CFO appointments to the National Treasury for final approval. This is intended to reduce the influence of local officials in financial matters and ensure compliance with national standards. The reforms also include measures to increase transparency and public reporting on municipal finances.
The push for centralized control comes amid ongoing concerns about mismanagement and lack of oversight in municipal budgets. Recent audits have highlighted significant discrepancies in financial reporting, prompting calls for stronger national intervention. The National Treasury has emphasized that the reforms are part of a long-term strategy to improve fiscal discipline and public trust in local governance. The new laws are expected to take effect by the end of 2026, following parliamentary approval.
