Salga demands immediate release of withheld municipal funds

The association is engaging Treasury over process used to withhold LGES tranche from 75 municipalities

- BANELE GININDZA

SALGA said the LGES, one of three annual tranches disbursed by National Treasury, is a critical funding mechanism that enables municipalities to deliver basic services and promote equitable service delivery. | GCIS

THE South African Local Government Association (Salga) has called for the immediate release of funds after formally engaging the National Treasury over concerns about the process used to withhold the December 2025 Local Government Equitable Share (LGES) tranche from at least 75 municipalities.

Salga said the LGES, one of three annual tranches disbursed by National Treasury, is a critical funding mechanism that enables municipalities to deliver basic services and promote equitable service delivery.

The withholding of the December tranche has had direct and serious implications for affected municipalities across the country.

Salga spokesperson Tebogo Mosala over the weekend said the association had identified significant shortcomings in the process followed by National Treasury, particularly around communication with municipalities.

"Notably, there was a lack of consistency in communications with the affected municipalities. Treasury's correspondence was often unclear regarding the specific information or documentation required to rectify identified non-compliances," Mosala said in response to questions.