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SALGA hails allocation increases, urges more support

The South African Local Government Association (SALGA) recently told Parliament’s Standing Committee on Appropriations that even though increases in allocations to municipalities were above inflation, they were not enough to pull them out of their various financial quandaries.

"SALGA briefed the Committee in the midst of national government’s scramble to save some municipalities from the losses they suffered from investing their equitable share allocations in VBS Mutual Bank.

While municipalities were warned well in advance about this – by the South African Reserve Bank, no less – the predicament speaks volumes of some council’s inability to generate their own viable capital to provide basic services or build infrastructure.

SALGA’s director for audit support, Mohammed Lorgat, told the Committee that true upward movement in allocations must take municipalities' capacity to generate revenue into account.

Click here to access the full article, as sourced from fin24 on 3 December 2018. 

Photo: Pixabay


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Sharing the common goal of promoting participatory, effective, accountable and pro-poor local governance, the network strives to provide an interface for civil society organisations to network and share information towards strengthening local democracy in South Africa.