The South African Municipal Workers’ Union (SAMWU) has accused National Treasury of “sabotaging service delivery” by withholding equitable share allocations from struggling municipalities, saying the move will deepen the financial crisis facing local government and punish workers and communities instead of those responsible for mismanagement.
The union’s criticism comes ahead of its National Day of Action on Thursday, during which municipal and water sector workers will march to the National Treasury, the Department of Cooperative Governance and Traditional Affairs (COGTA), the South African Local Government Association (SALGA) and the Department of Water and Sanitation over funding, wages, outsourcing, and working conditions.
Speaking in a television interview ahead of the protest, SAMWU general secretary Dumisane Magagula said Treasury’s decision to withhold funding from municipalities already battling financial distress would worsen service delivery failures and place workers’ livelihoods at risk.
“At SAMWU, we view the statement by the National Treasury and their intention to withhold equitable share as straightforward sabotage of service delivery,” said Magagula.
‘Salaries at risk’
“It sabotages the rights of employees in terms of their salaries. We already have a number of municipalities that are not able to pay salaries on time and are not able to pay third parties, and these workers are there for service delivery.”
He said the decision would also affect residents who rely on municipalities to provide basic services.
“We’re also worried about services that should be going to communities. As much as there are problems in municipalities, we believe that the withholding of funds will further sabotage service delivery.”
Treasury demands accountability
The comments follow National Treasury and finance minister Enoch Godongwana’s announcement that it would withhold equitable share allocations from municipalities that have failed to meet key financial management and governance requirements, arguing that stronger accountability is needed to protect public funds.
Asked how the union reconciles its criticism of Treasury with repeated findings by the Auditor-General that many municipalities suffer from poor financial management and a lack of consequence management, Magagula said SAMWU supported action against those responsible for mismanagement.
‘SAMWU supports consequence management’
“There should be consequence management for those who are mismanaging finances of municipalities and consequence management for those who are failing to put in place systems for revenue collection,” he said.
He argued, however, that withholding funding was the wrong response because it punished workers and residents instead of municipal officials responsible for financial failures.
“We are not saying municipalities should be given money so that they continue to mismanage. There should be other options to deal with the systemic challenge of mismanagement in municipalities.”
“It shouldn’t include taking away service delivery. It shouldn’t include taking away the rights and job security of employees.”
‘Deepening crisis in local government’
Magagula said the union would use Thursday’s nationwide protest to press government departments responsible for the governance and funding of municipalities to intervene in what it describes as a deepening crisis in local government.
He said the march would target the National Treasury, COGTA, SALGA and the Department of Water and Sanitation because all four institutions play central roles in municipal funding, oversight and service delivery.
Among the union’s demands are a review of the municipal funding model, improved wages and working conditions for municipal and water sector workers, an end to outsourcing, protection of jobs and urgent interventions to stabilise municipalities facing financial collapse while ensuring officials responsible for financial mismanagement are held accountable.
- The South African Municipal Workers' Union (SAMWU) accuses National Treasury of "sabotaging service delivery" by withholding equitable share funds from financially struggling municipalities, worsening local government crises and harming workers and communities.
- SAMWU plans a National Day of Action protest targeting National Treasury, COGTA, SALGA, and the Department of Water and Sanitation to demand better funding, wages, working conditions, and job security.
- Treasury announced withholding funding from municipalities failing financial management and governance standards, aiming to enforce stronger accountability for public funds.
- SAMWU supports holding officials accountable for mismanagement but argues that withholding funds punishes workers and residents instead of targeting those responsible.
- The union demands a review of the municipal funding model, improved worker conditions, an end to outsourcing, job protection, and urgent measures to stabilise municipalities while ensuring consequence management for mismanagement.
"At SAMWU, we view the statement by the National Treasury and their intention to withhold equitable share as straightforward sabotage of service delivery," said Magagula.
"It sabotages the rights of employees in terms of their salaries. We already have a number of municipalities that are not able to pay salaries on time and are not able to pay third parties, and these workers are there for service delivery."
He said the decision would also affect residents who rely on municipalities to provide basic services.
"We're also worried about services that should be going to communities. As much as there are problems in municipalities, we believe that the withholding of funds will further sabotage service delivery."
Asked how the union reconciles its criticism of Treasury with repeated findings by the Auditor-General that many municipalities suffer from poor financial management and a lack of consequence management, Magagula said SAMWU supported action against those responsible for mismanagement.
"
He argued, however, that withholding funding was the wrong response because it punished workers and residents instead of municipal officials responsible for financial failures.
"We are not saying municipalities should be given money so that they continue to mismanage.
"It shouldn't include taking away service delivery. It shouldn't include taking away the rights and job security of employees."
Magagula said the union would use
He said the march would target the National Treasury, COGTA, SALGA and the Department of Water and Sanitation because all four institutions play central roles in municipal funding, oversight and service delivery.
