JOHANNESBURG - The South African Local Government Association (SALGA) said the increasing number of municipalities struggling to sustain themselves is concerning.
The National Treasury has withheld funding from 69 municipalities across all nine provinces.
It includes the Joburg, Buffalo City, Nelson Mandela Bay and Mangaung metros.
SALGA CEO Sithole Mbanga said the financial crisis facing municipalities has two sides.
READ | Treasury insists municipal funding freeze will not impact services
He said that while municipalities are responsible for managing finances responsibly to avoid underfunded budgets and wasteful expenditure, they are also confronted with environments that are not strengthening.
"The economy is not growing. Consequently, municipal customers, households, including businesses, are struggling to afford the services of the municipality. And ultimately, that leads to the unsustainability of the municipalities," he said.
According to Treasury, the decision to withhold funds from various municipalities follows persistent and serious non-compliance with the Municipal Finance Management Act (MFMA) and its supporting regulations.
Treasury said the intervention is a corrective, rather than punitive, measure and that the withholding of funds is temporary.