The South African government has gazetted new cost containing measures for municipalities, which will curb what officials can blow taxpayer’s money on.
The new rules fall under the Municipal Cost Containment Regulations for 2019, which was gazetted in terms of the Municipal Finance Management Act.
National Treasury said that the objective of the new rules is to ensure that resources given to municipalities are used effectively, efficiently and economically by containing spending.
The rules apply to all municipal officials and political office bearers and entities in South Africa.
According to National Treasury, failure to abide by the rules – ie an officer incurs expenditure that is counter to the rules set out by the department – will result in the official being held liable for financial misconduct or a financial offence.
This could result in officials being reported to the police on fraud charges.
Municipalities wil
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