New rules will limit municipal spending on VIP perks, decor and more

New rules will limit municipal spending on VIP perks, decor and more

- New rules will restrict frivolous municipal spending

- This includes caps on free lunches and the value of government officials' cars

- Additionally, officials found violating the spending rules could face hefty punishments

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From 1 July, new rules will come into effect which will limit municipal spending on perks for officials.

Among other changes, entertainment budgets for government officials will be capped at R2000 and there will be no more free lunches supplied to meetings that onle consist of government employees.

Additionally, municipal cars will not be more than R700 000.

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These rules come after several years of growing frivolous expenditure by various municipalities. These include spending on VIP treatment for officials, such as blue light brigades. 

Other rules will force municipal officials to use only public transport when traveling and place a total ban on the use of official credit cards, according to Business Insider.

Failure to abide these rules will see officials sanctioned. If found guilty of misusing funds, they may be forced to pay back the money or even face criminal charges, has gathered.

Additionally, there will be limits on how much municipalities can spend on furniture and decor, to stop over-the-top spending on luxurious office decorations, etc.

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Notable, these restrictions are all set in hard rand values and there is no provision for any inflation.

What this means is that, with inflation, the budgets for these kinds of municipal spending will actually shrink in the coming years until such time as they are replaced.

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