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Cape Town executive mayor, Dan Plato responds to National Treasury’s municipal cost containment regulations

From 1 July, municipalities will be allowed to spend a maximum of R700,000 on cars...
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Cape Town executive mayor, Dan Plato says the National government must take a look at its own expenditures before seeking to regulate the spending of local municipalities.

Plato was responding to National Treasury’s municipal cost containment regulations which come into effect next month.

Finance Minister Tito Mboweni said: “The regulations aim to promote better governance and management of finances by municipalities. This is in line with the spirit of the MFMA and other applicable regulations, which require that managers must manage but also be held accountable.”

Mboweni wants to clamp down on wasteful expenditure.

However, Plato says national government “should begin to look at themselves as well and what is going on with regard to their expensive trips and expensive vehicles.”

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He added that the City of Cape Town is not guilty of unnecessary and wasteful spending.

“We do not drive around in BMWs costing R700,000-plus, we drive around in ordinary motor vehicles costing much, much less than that – Toyota Corollas and so on,

Even the Premier travels economy class and mayor committee members also,” he said.

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.

More: capetalk

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