SAMWU condemns National Treasury's withholding of municipal funding
The South African Municipal Workers' Union (SAMWU) has expressed outrage over the National Treasury's decision to withhold municipal equitable share allocations.
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The South African Municipal Workers' Union (SAMWU) has slammed the decision by the National Treasury to withhold municipal equitable share allocations from municipalities across the country due to financial management concerns.
The Mercury reported earlier this week that the Newcastle Municipality in KwaZulu-Natal was among those affected.
It has been reported that budget funding plans, irregularities identified by the Auditor-General of South Africa, outstanding pension fund submissions, South African Revenue Service compliance issues and water board arrears are among the issues flagged by the Treasury.
SAMWU said it was outraged by the Treasury’s “reckless decision to freeze the December equitable share allocations” and deemed the move an “act of economic sabotage directed at the heart of the working class”.
It said as a result of the withholding of the allocations, municipal workers' salaries and service delivery would be impacted during the festive period.
“By pulling this funding just days before the festive season, the National Treasury is effectively sentencing thousands of municipal workers to a December without salaries, bonuses, or the ability to provide for their families. It is a cruel and calculated assault that treats the livelihoods of workers as collateral damage in a bureaucratic war over balance sheets.”
The union added that while it acknowledged that many municipalities are facing severe financial challenges, leading to the non-payment of statutory obligations such as salaries, pension contributions, and medical aid, the response by the Treasury “completely illogical”.
“Instead of intervening to provide the necessary technical and financial support to stabilise these institutions, the National Treasury has chosen to compound the problem, effectively pushing struggling municipalities over the precipice. Beyond the immediate suffering of workers, this decision serves as a death warrant for service delivery across the most vulnerable regions of our country. The equitable share is the lifeblood of municipal operations. Without it, taps will run dry, lights will go out, and refuse will pile up in our streets.”
It added that this action came after the National Treasury's consistent failure to offer genuine support to struggling municipalities.
“As SAMWU, we demand the immediate and unconditional release of the withheld funds to ensure that workers are paid and services are maintained. If the National Treasury and the government at large are truly interested in fostering municipalities that work for residents and workers alike, they will cease being accomplices to a bleak Christmas for municipal workers. We will not stand by while our members are sacrificed at the altar of fiscal austerity.”
The union's stance comes after the SA Local Government Association raised its concerns regarding the withholding of allocations. The National Treasury has not yet commented on the matter.