In light of the escalating crisis between local government units (LGUs) and the Palestinian government—particularly in the Hebron governorate—stemming from attempts to address mutual financial obligations in a way that renders LGUs incapable of continuing to fulfill their mandates and threatens their stability and sustainability, the Association of Palestinian Local Authorities affirms the following:

1. Resolving the issue of so-called “Net Lending” is a top priority for LGUs—arguably even more so than for the central government—due to its devastating financial toll. APLA insists on a comprehensive solution that includes all financial reconciliation items between the government and LGUs and guarantees the full and sustainable payment of LGU entitlements. APLA has long submitted practical proposals aimed at safeguarding the rights of both parties. These include scheduling mutual debts, authorizing LGUs to directly collect their dues, and establishing mechanisms for transparent financial reporting. However, governmental procrastination, evasion, and persistence in adopting partial and fragmented solutions have only deepened the crisis.
2. APLA strongly condemns the government’s unjustified use of coercive tactics—such as freezing LGUs’ tax and fee revenues or halting donor-funded projects—as pressure tools to force compliance with incomplete agreements. Furthermore, APLA rejects the criminalization of elected mayors, most recently evidenced by travel bans issued against the mayors of Hebron, Dura, Yatta, and Al-Dhahiriya.
3. The rights, assets, and legal powers of local government units belong to the municipalities and their residents. It is the government's responsibility to ensure the availability of adequate financial resources or viable alternatives for LGUs to continue delivering services on its behalf. APLA also stresses that the government is obligated to support LGUs in enforcing the law and holding accountable those who misuse or embezzle public funds.
4. The crisis is not limited to a few municipalities in Hebron; it is a nationwide issue affecting LGUs across all governorates. The government’s insistence on collecting its dues while disregarding its financial obligations toward LGUs will only exacerbate the situation—especially as most LGUs are already struggling under severe financial strain.
5. APLA emphasizes that rational, balanced, and constructive dialogue is the only viable path forward. The government must work in partnership with LGUs to find pragmatic solutions that ensure both parties receive their dues without compromising the continuity and rights of LGUs, their elected representatives, and their staff.
6. APLA urges the government to engage with the current realities responsibly and fulfill its stated commitments to “enhancing the stability and sustainability of local governance,” as outlined in its strategic plans and policy frameworks. APLA remains fully committed to defending the rights and mandates of its member LGUs and calls on mayors, councils, and staff to continue serving their communities with resolve.

Association of Palestinian Local Authorities (APLA)

24 May 2025