# National Treasury has invoked section 216 of the Constitution, which authorises the withholding of funds from organs of state that breach financial management legislation. This comes as debt owed to the Auditor-General of South Africa by municipalities and state-owned entities reached 1.83-billion-rand at the end of July. This is a significant increase from the 1.35-billion-rand recorded in March. The long-standing defaulters include Denel and the SA Post Office. Treasury says its collaborative monitoring framework with the Auditor-General includes tracking defaults and recommending write-offs for entities in liquidation.
Treasury assisting the Auditor-General’s office recover R1.83-billion in debt owed