National Treasury urged to extend cost-containment rules
The National Treasury has come to the defence of the cost containment measures for local government, saying they promoted better governance and management of finances in municipalities. The department published the regulations last week, a move that attracted a mixed reaction.
Municipalities can buy vehicles for use by political office bearers that are not more than R700 000 or 70% of annual remuneration, and vehicles can be procured through the transversal contract concluded by the Treasury. Also prohibited is incurring catering expenses for meetings attended only by municipal people, alcoholic beverages and branded items other than uniforms, office supplies and tools of the trade.
According to the Treasury, then minister Pravin Gordhan announced putting such measures in place for local government in 2016. “Municipalities and municipal entities continue to spend public funds and municipal resources on non-priority items this results in diversion of public funds from core service delivery resulting in dissatisfaction by communities and delays in service delivery.”
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