Ten municipalities in the North West have submitted formal requests to National Treasury asking to retain and roll over unspent portions of the 2025/26 Municipal Infrastructure Grant (MIG) allocation, provincial Treasury confirmed. The applications centre on part of the province’s R2.19 billion MIG budget and are being assessed under National Treasury’s Municipal Finance Management Act (MFMA) Circular 134.
What the applications mean
Unspent conditional grants ordinarily revert to the National Revenue Fund at the end of the municipal financial year unless Treasury approves a rollover. Circular 134 requires municipalities seeking rollovers to demonstrate that funds are tied to identifiable projects and that delays arose from unforeseen and unavoidable circumstances — not from weak planning or poor financial management.
Provincial Treasury head Ndlela Kunene confirmed receipt of the 10 applications and said National Treasury would assess them under the circular’s conditions. Municipalities had until 31 August to submit complete dossiers proving the money was committed to specific projects; Treasury has said incomplete or late applications will not be considered and that municipalities should be notified by 23 October whether their requests are approved.
“These pressures reinforce the importance of sound financial management, credible planning and effective coordination,”
Kunene warned the requests must arise from "unforeseen and unavoidable circumstances" to qualify. The provincial government previously reported that municipalities had spent R1.3 billion, or 64%, of the MIG allocation by the end of March and said it wanted to drive expenditure towards full allocation and warned of reallocation where performance was poor.
Local impact and political fallout
The rollover applications bring infrastructure spending back into focus in a province where many communities still lack reliable water, sanitation and safe roads. Opposition parties have seized on the news: the Economic Freedom Fighters (EFF) in the North West questioned how municipalities could leave infrastructure money unused while residents continue to suffer service backlogs.
Municipalities argue that projects are often delayed by factors such as contractor non-performance, land access disputes, adverse weather and slow procurement processes. Where applications show funds are committed to contracts or procurement that could not be completed by year-end for legitimate reasons, Treasury may permit a rollover rather than allow funds to lapse and be returned to the National Revenue Fund.
- Deadline: Municipalities had to submit complete rollover applications by 31 August.
- Decision date: Treasury to notify municipalities by 23 October.
- Requirement: Demonstrate funds are committed to identifiable projects and that delays were unforeseen and unavoidable.
Why rollovers matter
Allowing rollovers can protect ongoing projects from collapse when committed contracts span financial years. However, repeated rollovers can also mask poor planning or weak project implementation. For communities, approval of a rollover can mean the difference between an incomplete borehole or sewer project and continued progress to completion.
| Figure | Amount |
|---|---|
| MIG allocation (2025/26) | R2.19 billion |
| Reported spent by end March | R1.3 billion (64%) |
Provincial officials note the broader fiscal pressures facing municipalities, urging better planning and coordination to prevent future under-expenditure. Municipal finance units must present evidence — purchase orders, signed contracts, land-use clearances or other documentation — that the money was committed and that the delay was not due to negligence.
For residents, the outcome will be practical: approved rollovers can allow sewer repairs, water supply projects and roadworks to continue uninterrupted. If Treasury rejects applications, funds could be reallocated nationally, leaving local projects at risk unless municipal budgets can find alternate funding.
National Treasury’s strict stance — that incomplete or late requests will not be considered — increases the pressure on municipal managers and political leaders to resolve procurement or contractual problems quickly. The provincial message is clear: rollovers may be granted in exceptional cases, but the long-term objective remains full and timely expenditure of allocated infrastructure funding.
Decisions on the ten applications are expected to be issued in late October. Communities waiting for services will be watching both Treasury and their municipal councils closely.
