- SALGA has urgently approached the courts to stop AARTO Phase 2 before it is set to begin on 1 July 2026.
- The association argues that under the current funding model, municipalities simply cannot afford to implement the system.
- SALGA is calling for the rollout to be suspended until the ongoing dispute over the funding model is resolved between the spheres of government.
Municipalities cannot be expected to implement the Administrative Adjudication of Road Traffic Offences (AARTO) system without a sustainable funding model.
The South African Local Government Association (SALGA) warns that the added financial burden could draw scarce resources away from essential services that communities rely on.
SALGA has approached the High Court in Pretoria, urgently seeking an order to prevent Phase 2 of AARTO from taking effect on 1 July 2026 until the funding dispute is resolved. The urgent court application is expected to be heard on Tuesday, 30 June 2026.
While SALGA supports the goal of AARTO to improve road safety and reduce fatalities, it believes the current regulations leave municipalities carrying an unfunded mandate at a time when local government finances are already under immense pressure.
SALGA municipalities cannot afford the current funding model
According to SALGA, municipalities are already operating under increasing financial strain while they try to provide essential services.
The association says that the AARTO regulations published in October 2025 place extra financial obligations on municipalities but provide no sustainable funding model to implement the law effectively.
SALGA said, “The current AARTO regulations, published in October 2025, impose financial burdens on municipalities without providing a sustainable financial model for effective implementation. This threatens municipal financial sustainability and risks diverting limited resources away from service delivery to cover the costs of implementing AARTO.”
SALGA says it has repeatedly warned the government that the current financial arrangements mean municipalities would spend more on implementing AARTO than they are likely to recover, effectively forcing local government to subsidise the system at the expense of other critical municipal services.
Years of engagement failed to resolve concerns
It says it has been raising financial concerns with the Department of Transport since 2022, with more discussions taking place from November 2025.
According to the association, the department has failed to provide meaningful consultation or practical solutions despite repeated concerns being raised.
SALGA also rejected proposals made by the Minister of Transport in June 2026, including participation in preparatory meetings, convening a workshop, and reviewing the regulations within six months.
SALGA said, “The belated offers made by the Minister in June 2026, including preparatory meetings, a workshop, and reviewing regulations within six months, are inadequate and come too late to address the fundamental issues before the scheduled implementation date.”
Funding dispute heads to court
SALGA says it resolved earlier in June to pursue an intergovernmental dispute in line with the Intergovernmental Relations Framework Act.
The dispute centres on the timing of AARTO Phase 2, the funding model behind the regulations, and the need for municipalities to have meaningful input into decisions that directly affect their budgets and operations.
SALGA says its urgent application aims to halt Phase 2 until the dispute has been properly considered and resolved.
The association argues that implementing AARTO before resolving the funding dispute would undermine cooperative governance and weaken the ability of municipalities to enforce road traffic laws effectively.
Service delivery could suffer
SALGA says municipalities cannot continue to absorb unfunded mandates that threaten their financial health.
The association said, “Municipalities, the frontline of service delivery, cannot be expected to take on unfunded mandates that compromise their financial viability.”
SALGA says it remains committed to working with the national and provincial government to improve road safety and strengthen law enforcement, provided the implementation is financially sustainable and fair.
The association also wants the Department of Transport and the Minister of Transport to give an undertaking that Phase 2 of AARTO will not go ahead until the funding dispute has been resolved through the intergovernmental process.
SALGA says it remains open to constructive dialogue and urges all parties to work towards a solution that balances road safety objectives with the fiscal realities facing local government.
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