The Alternative Information and Development Centre (AIDC) has condemned the National Treasury's decision to withhold funding from 69 municipalities, arguing that it unfairly targets poor households and fails to address systemic financial challenges.The Treasury initially withheld R13.

5 billion from municipalities in July 2026 to enforce fiscal discipline and combat mismanagement, but AIDC claims this approach is a 'false solution' that deepens inequality.

The organisation highlights that municipalities operate under an unsustainable model reliant on property rates and service charges, which has led to rising debt, infrastructure decay, and service disconnections.

AIDC warns that cutting equitable share funding deprives vulnerable households of essential services like water and electricity, while ignoring the root causes of municipal financial instability.

They also dispute Treasury's assertion that debt to Eskom stems from poor governance, attributing it instead to affordability issues for households.

The AIDC calls for a publicly financed model to ensure universal access to services and address structural inequalities, arguing that austerity measures worsen poverty rather than resolve it.