SALGA says municipal financial challenges require long-term reforms after Treasury withheld July equitable share allocations from 69 municipalities, warning enforcement alone will not resolve local government distress.
The South African Local Government Association (SALGA) has warned that National Treasury’s decision to temporarily withhold July 2026 Local Government Equitable Share allocations to 69 municipalities must not undermine essential services or municipal financial sustainability.
National Treasury said on Tuesday that the withholding was aimed at enforcing fiscal discipline, addressing financial mismanagement and ensuring accountability among municipal officials and office-bearers following persistent non-compliance with the Municipal Finance Management Act (MFMA) and its regulations.
The affected municipalities span all nine provinces and were given written notice and an opportunity to provide reasons why their allocations should not be withheld.
Treasury said the measure was corrective rather than punitive, adding that the temporary withholding was not expected to affect service delivery.
