The South African Local Government Association (Salga) Gauteng calls for a fair, transparent and collaborative intergovernmental process to resolve the decision by the National Treasury to withhold equitable share allocations from six municipalities in the province.
Treasury announced last week that it would withhold equitable share transfers to 69 municipalities across the country.
Municipalities must comply with financial governance requirements, but enforcement measures should not undermine the constitutional mandate of local government nor compromise the delivery of essential services, says Salga Gauteng.
The equitable share remains a critical source of funding, particularly for municipalities facing constrained revenue bases, rising bulk service costs, historical debt burdens and increasing socioeconomic pressures, the organisation adds.
Salga Gauteng is concerned that withholding equitable share allocations may unintentionally deepen the financial challenges these measures seek to address. Many municipalities rely on these allocations to provide basic services, support indigent households, meet operational commitments and honour payment arrangements with suppliers.
