New municipal spending rules to curb local government extravagance

Regulations seeking to curb excessive and unnecessary spending by local government will come into force at the beginning of next month.

They include rules around budgets for municipal vehicles, entertainment allowances, travel expenses, and credit cards.

Known as the Municipal Cost Containment Regulations 2019, they've been set by National Treasury.

Kevin Allan is the co-founder of Municipal IQ, a data service which monitors South Africa's municipalities.

He says the tide seems to be turning across the country when it comes to attitudes around municipal spending.

In the Northern Cape, the premier has put his foot down...no flashy cars.

Kevin Allan, Co-founder - Municipal IQ

He adds that there is also significant pressure from the public to curb extravagance by local government.

The South African public has really had a gutful of this kind of thing.

Kevin Allan, Co-founder - Municipal IQ

I think there has been significant abuse at local level and that's obviously the reason that Treasury has had to come up with this very specific regulation to regulate behaviour.

Kevin Allan, Co-founder - Municipal IQ

From 1 July, municipalities will be allowed to spend a maximum of R700,000 on cars for those in political office, entertainment allowances will be capped at R2 000 per year and there will be an outright ban on official credit cards.

Listen to the full interview below:


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