Municipalities fear financial blow as Sileku warns of AARTO revenue loss

Western Cape Mobility MEC Isaac Sileku has raised the alarm over the potential financial fallout municipalities may face once the Administrative Adjudication of Road Traffic Offences Act (AARTO) takes effect. He cautioned that local governments could lose crucial income from traffic fines, a key revenue stream that many towns depend on to sustain services.

Sileku welcomed the decision by Transport Minister Barbara Creecy to postpone the second phase of the AARTO rollout from December 2025 to July 2026. He said the delay would give municipalities much-needed time to assess their readiness and understand how the new system might affect their budgets.

Under the AARTO framework, the management of traffic violations will shift from local authorities to a national demerit-based system. However, Sileku said there has been little clarity on who will receive the fines collected, leaving municipalities uncertain about their future income.

“Municipalities rely on fine income for essential operations. Without a clear revenue-sharing model, there is a real risk that local government budgets will take a significant hit,” Sileku warned.

Several municipalities have already expressed concern that the change could weaken their ability to fund traffic enforcement and other public services. Smaller councils, in particular, fear that if fine revenue is redirected without compensation, their day-to-day functioning could be compromised.

Sileku urged the national government to provide clear guidelines and ensure that municipalities are not left out of the financial equation. He added that the success of AARTO would depend on cooperation between national and local authorities, ensuring both safer roads and sustainable local governance.