The Maluti-a-Phofong Local Municipality has delayed July salary payments to its staff, citing withheld equitable share funds from the National Treasury as the primary reason.

This follows a letter sent to employees stating that the municipality is unable to meet payroll obligations due to ongoing disputes with the Treasury.

The South African Democratic Party (SADP) has criticized the municipality's financial management, highlighting that the delay is part of a recurring issue dating back to 2018, which led to the municipality being placed under administration.

Unions have reported that staff received letters explaining the salary delay, with some members expressing frustration over the lack of prior warning.The National Treasury has withheld R13.5bn from 69 municipalities, requiring them to prove they are paying creditors as per repayment agreements.

Critics argue that equitable share should not be a source of income for large municipalities like Maluti-a-Phofong, which previously maintained a four-month reserve.

DA councillor Alison Oates condemned the municipality's financial mismanagement, noting that its monthly salary bill of R70m exceeds budget, while it is allocated R896m in equitable share funding.The Municipal Public Accounts Committee (MPAC) has also faced scrutiny for failing to hold officials accountable, with allegations of writing off R3.37bn in irregular expenditure.The situation underscores systemic governance failures and the impact of delayed payments on both employees and municipal operations.