THE South African Local Government Association (Salga) is taking legal action to halt the implementation of Phase 2 of the AARTO Act, citing unresolved financial concerns that threaten municipal sustainability and service delivery.
The Gauteng High Court, Pretoria, will this week hear an urgent bid by Salga to interdict the implementation of Phase 2 of the Administration and Adjudication of Road Traffic Offences Act (AARTO), scheduled to commence on July 1.
The application follows repeated engagements with the Department of Transport (DoT) and the Minister of Transport over unresolved financial implications of AARTO for municipalities, among other issues.
Salga said it has consistently supported the objectives of AARTO, particularly its purported contribution to improving road safety and reducing South Africa’s high rate of road accidents.
However, Salga has raised serious concerns about the funding model underpinning the Act and more particularly its regulations. It pointed out that municipalities are already operating in an increasingly constrained fiscal environment, with limited resources to deliver essential services.
“The current AARTO regulations, published in October 2025, impose financial burdens on municipalities without providing a sustainable financial model that will ensure effective implementation. This threatens municipal financial sustainability and risks diverting limited resources away from service delivery to cover the costs of implementing AARTO,” Salga said.
In engagements dating back to 2022 and more recently since November last year, Salga highlighted that the proposed financial arrangements would result in municipalities spending more than they can earn, effectively forcing local government to subsidise the implementation of AARTO at the expense of other critical functions.
Despite these concerns, the department has failed to provide meaningful consultation or practical solutions on this matter, Salga said.
It added that the belated offers made by the minister this month, including participation in preparatory meetings, convening a workshop, and reviewing regulations within six months, are inadequate and come too late to address the fundamental issues before the scheduled implementation date.
It is in that context that Salga resolved earlier this month to pursue an intergovernmental dispute in terms of the Intergovernmental Relations Framework Act (IGRFA).
The association said dispute centres on the timing and financial model of AARTO implementation, and the need for municipalities to have meaningful input into the regulations that directly affect their operations and budgets.
Salga said it is turning to court to ensure that Phase 2 of AARTO is interdicted until the IGRFA dispute is properly ventilated and resolved.
“The urgent application is grounded in the principle of cooperative governance and Salga believes that effective intergovernmental relations require meaningful consultation, transparency, and fairness. Municipalities, which are the frontline of service delivery, cannot be expected to absorb unfunded mandates that compromise their financial viability,” it said.
Salga added that the implementation of AARTO without resolving the funding model would undermine local government’s ability to enforce road traffic laws effectively, thereby weakening the very objectives the Act seeks to achieve.
Salga reiterated its commitment to working with national and provincial government to improve road safety and strengthen law enforcement.
However, it said, this must be done in a manner that is financially sustainable and equitable.
It said in filing the urgent application, it is acting to protect the financial sustainability of municipalities, uphold the principles of cooperative governance, and ensure that the implementation of AARTO does not compromise service delivery to communities.
Salga called on the department and the minister to provide an undertaking that Phase 2 of AARTO will not be implemented until concerns regarding the funding model are resolved and the intergovernmental dispute process has been concluded.
It said it remains open to constructive dialogue and urges all parties to work towards a solution that balances road safety objectives with the fiscal realities of local government.
