The South African Municipal Workers Union (Samwu) has threatened to take Minister of Finance Enoch Godongwana to court to fight his plan to withhold this month’s grants to 39 municipalities.
Dumisani Magongwa, Samwu general secretary, told Sunday World the union is already gathering information to prepare a robust response, including a legal challenge.
“We are actively exploring all legal avenues available to us to protect our members’ rights, including challenging any unlawful withholding of funds that directly impacts workers’ livelihoods.
“Just recently, working with our provincial office in the Northern Cape, we approached the high court to compel the Kheis Local Municipality to pay workers their salaries.
“We are prepared to take similar decisive legal action where necessary,” said Magongwa.
The union is demanding urgent meetings with Godongwana and Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa to discuss alternatives that do not punish municipal employees for the failure of political leaders and management.
Dumisani Magongwa, Samwu general secretary, told Sunday World that withholding the grants could bring local government to its knees and plunge thousands of its members into deeper financial crisis.
“The National Treasury’s threat is not only a serious concern for Samwu but also a counterproductive measure that will result in a snowball effect, ultimately leading to the collapse of essential service delivery in many of the identified municipalities,” said Magongwa.
He said many of the municipalities facing funding cuts are already unable to pay salaries on time, and if the Treasury proceeds with its plan, thousands of workers will not be paid.
He added that consequences may also include mass job losses, social unrest, and further deterioration of basic services in communities already affected by financial mismanagement.
“We firmly believe that meaningful engagement with labour is crucial in finding sustainable solutions,” said Magongwa.
“We are of the view that intervention through Section 139 should be a matter of last resort. We have observed numerous municipalities undergoing this intervention, and if anything, their financial situation has often regressed.”
Magongwa insists the core issue lies in the municipal funding model itself, which he described as outdated and unsustainable.
He said until this model is reformed, municipalities will continue to slide into crisis.
Earlier this month, Godongwana wrote to Hlabisa to raise concerns that the failure of the 39 municipalities to honour their financial obligations suggested they were on the brink of collapse.
So, to force them to pay their bills, the Treasury would withhold the payments that include the equitable share and conditional grant allocations given to the municipalities every month or place them under section 139(5) intervention.
This section of the Constitution empowers the provincial government to dissolve the council and appoint an administrator to run the affairs of any municipality under financial distress.
The 39 municipalities have failed to pay for water, SARS, members’ pensions, medical aids and even the auditor-general.
He said some of these municipalities owed water boards, themselves on the brink of collapse, huge amounts.
For example, Matjhabeng owes Rand Water more than R8.1 billion, while Emfuleni owes over R1.7 billion.
He added that Kopanong and Dr Ruth Segomotsi Mompati district municipalities are so deep in debt they face imminent bankruptcy.
Godongwana said the Treasury had a plan to help 18 of the worst-off municipalities.
The plan will force these municipalities to use the grant to pay their water debt within seven days of receipt “and provide proof” of settlement.
“If the municipality meets this condition, then a second portion of the equitable share will be released.”
But it will be with its own set of conditions, which will continue until all water-related debts are fully settled.
He said if the municipality fails to meet these conditions, they will ask Parliament to approve the complete stoppage of all equitable share payments for the rest of the 2025/26 financial year.
“Furthermore, all 39 municipalities will be required to provide evidence that Sars, pension and other staff benefits deducted from the salaries of municipal officials have been paid over to the appropriate institution within the prescribed period,” Godongwana wrote to Hlabisa.
