By Emily Setona
QWAQWA – Independent political analyst Dr Lilly Phokontsi has raised tough questions about the South African Local Government Association’s (SALGA) role in addressing the deepening governance crisis facing municipalities after National Treasury temporarily withheld Local Government Equitable Share transfers to 69 municipalities across South Africa.
Responding to SALGA’s media statement issued on 7 July, in an exclusive interview with The Guard newspaper; Dr Phokontsi said while the withholding of funds would undoubtedly worsen service delivery challenges, the decision reflects years of persistent governance failures that can no longer be ignored.
She noted with regret that municipalities already battling financial distress will face even greater pressure as equitable share allocations are intended to sustain basic municipal functions and ensure continued service delivery.
“The withholding means that many municipalities’ fiscus will effectively run dry, further compromising already fragile service delivery,” she said.
Dr Phokontsi explained that the Local Government Equitable Share is provided for under Section 214(1) of the Constitution and is distributed according to prescribed criteria as an unconditional allocation to municipalities.
However, she argued that municipalities are expected to demonstrate financial sustainability through effective revenue generation and collection rather than becoming permanently dependent on national transfers.
According to Phokontsi, National Treasury’s decision stems from widespread non-compliance with financial management legislation and should be viewed as an attempt to restore accountability, sound governance and responsible financial administration.
“The governance structures and systems within many municipalities are either weak or virtually non-existent. Some municipalities are unable to account for public funds, while others divert these allocations to finance unfunded mandates,” she said.
She added that growing municipal debt, deteriorating infrastructure, declining revenue collection and poor planning all point to systemic weaknesses in management capacity and governance.
“The pattern has existed for years and the picture continues to deteriorate. Although Treasury’s decision may appear harsh, one has to ask whether there were any meaningful alternatives after years of recurring failures.”
Phokontsi said South Africans continue to hope for reliable services, stability and dignity from local government but instead experience declining infrastructure, failing services and little value for public money.
“Every year the Auditor-General presents a bleak assessment of municipal performance, yet very little changes. Public funds continue to be allocated while the outcomes fail to justify the investment.”
She believes decisive intervention has become necessary to remind municipal administrators and political leaders that taxpayers expect accountability and measurable service delivery.
Turning to SALGA’s response, Phokontsi questioned whether the organisation has fully discharged its constitutional and legislative responsibilities.
In its statement, SALGA reaffirmed its commitment to zero tolerance for financial misconduct, persistent non-compliance and failures in consequence management.
However, Phokontsi believes those commitments warrant closer scrutiny.
“SALGA exists to support municipalities, assist with policy development, strengthen governance, build institutional capacity and promote ethical leadership. The very challenges identified by National Treasury point directly to weaknesses in these areas.”
She questioned whether municipalities are receiving the appropriate support required to improve planning, financial management and governance systems.
“Is the capacity-building provided by SALGA relevant to the realities municipalities face? How actively is SALGA guiding struggling municipalities before crises reach this level? These are questions deserving serious reflection.”
Phokontsi argued that SALGA must acknowledge its own responsibility in the current state of local government.
“The institution must recognise that it has played a role in municipal failures. It should now intensify its support to municipalities to ensure they comply with National Treasury’s conditions and strengthen governance before more communities suffer the consequences.”
She concluded that restoring public confidence will require more than statements of concern. It will demand stronger oversight, practical support, effective leadership and measurable accountability from every institution tasked with strengthening local government.
