National Treasury Publishes Draft Municipal Finance Management Amendment Bill, 2026

Posted 06 November 2026 Written by Acts Online
Category Public Finance

Brought to you by SA Accounting Academy: National Treasury has published the draft Local Government: Municipal Finance Management Amendment Bill, 2026 for public comment, initiating the first comprehensive statutory overhaul of local government finance governance in 23 years.

The proposed legislative reforms amend the Local Government: Municipal Finance Management Act, No. 56 of 2003 (MFMA) and are published alongside the draft Public Finance Management Amendment Bill, 2026. The draft Bill aims to modernise municipal financial governance, tighten fiscal controls, and enhance institutional accountability across local government structures.

The provisions of the draft Amendment Bill apply across the local government sphere, specifically binding:

  • Municipalities and municipal entities;
  • Accounting officers, chief financial officers, and municipal officials;
  • Municipal councils, councillors, and oversight committees;
  • Commercial service providers and contractors transacting with local government; and
  • Provincial treasuries and relevant supervisory authorities exercising statutory oversight.

Click here to download the draft Municipal Finance Management Amendment Bill, 2026.

Click here to download the accompanying Memorandum on the Objects of the Municipal Finance Management Amendment Bill.

What this means for you, your business, or your clients

  • For yourself: Public sector auditors, accounting officers, and municipal financial advisors must review the draft amendments to determine proposed changes to statutory reporting thresholds, personal liability provisions, and non-compliance consequences.
  • For your business: Audit, legal, and accounting practices servicing municipal clients must prepare to update municipal internal audit frameworks, supply chain compliance checklists, and risk matrices against the proposed legislative reforms.
  • For your clients: Contractors and service providers bidding for municipal tenders face tightened procurement scrutiny, amended payment administration rules, and direct statutory obligations when contracting with municipalities and municipal entities.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-draft-mfma-amendment-bill-2026

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