R14.3bn budget allocation increase not enough for broke municipalities, says union

Despite billions of rand being allocated to the country’s 257 municipalities, the South African Municipal Workers’ Union (Samwu) says it will not be enough to alleviate pressure on those struggling to pay salaries and too broke to deliver basic services. 

On Wednesday, finance minister Enoch Godongwana delivered the 2023 budget speech in parliament and announced that local government allocations would increase by R14.3bn. This includes R8.1bn in local government equitable share (can be used on whatever a municipality deems a priority) and R6.2bn in conditional grants. Godongwana said municipalities would benefit from R522bn in direct allocations. 

He said those struggling financially and indebted to Eskom would receive relief.

Reacting, Sawmu general secretary Dumisane Magagula said many municipalities had financial problems, with some unable to deliver services to residents.

“Many municipalities have, for a long time, been unable to pay workers their salaries on time and in full, while others have made it a norm to deduct from workers’ salaries payments for statutory deductions and others, such as pension funds and medical aids, and never pay them to the intended recipients.”  

TimesLIVE reported in November that staff in Free State's Maluti-a-Phofung municipality were not paid on time because it faced financial difficulties.

Magagula said the union expected Godongwana to allocate more resources to the entities.

“The current municipal funding model is the single largest enabler of the collapse of the country’s municipalities.” 

As much as Eskom debt relief to municipalities was needed, it was not the answer to financial woes, he added.

The union had expected the finance minister to announce that government departments owing municipalities millions would be compelled to pay their debts, Magagula said. 

“Many government departments owe municipalities billions of rand for electricity and other services. This was seen when several municipalities across the country undertook debt-collection campaigns which revealed that not only are residents and businesses not paying, but government departments have also been complacent regarding dwindling municipal finances.”  

Magagula was also unhappy about Godongwana not mentioning the future of thousands of South African Post Office (Sapo) employees who are set to be retrenched. 

“The minister should have assured workers that the over R2bn allocated to Sapo will be used to ensure the future sustainability of the institution and, more importantly, secure the livelihoods of the affected 6,000 workers.” 

Magagula said he was happy with the R132bn allocated for water board infrastructure projects. 

“SA remains a country that is water scarce and as such there is a greater need to ensure that water boards embark on infrastructure projects that will ensure water security for the country and its residents. Failure to ensure this security will result in the country experiencing the same problems [as those at]  Eskom.”  

TimesLIVE