Municipalities will have to make “painful” adjustments to be sustainable – Godongwana

By Thebe Mabanga

South Africa’s municipalities will have to make “painful” adjustments to become financially sustainable, including reducing their reliance on water and electricity revenue to fund other municipal functions.

This was stated by Finance Minister Enoch Godongwana, who briefed the media following National Treasury’s decision to withhold R13.5 billion in equitable share allocations from 69 municipalities.

Godongwana announced that some municipalities had rectified their non-compliance and would receive either a portion or all of their withheld funds next Thursday.

The minister, who had been out of the country for the past week, also criticised the South African Municipal Workers’ Union (SAMWU) for marching to National Treasury’s offices over the decision.

Godongwana pointed to one of the most serious transgressions by municipalities: the deduction of R1.7 billion in workers’ pension contributions that was never paid over to pension fund administrators.

He argued that SAMWU could not condone such behaviour.

SAMWU