Ricochet News

Cost containment measures could mean no clean audit for NMB

NOVEMBER 14, 2014
Cost containment measures could mean no clean audit for NMB

Nelson Mandela’s Bay failure to comply with the instruction on cost containment measures issued by National Treasury could mean that it will not be able to achieve a clean audit for the current financial year.

The cost containment measures have been adopted by Council and combined with the Operational Efficiency Pan.

The cost containment measures include the fact that catering expenses may not be incurred for internal meetings, but he metro continues to supply lunch for councillors after council meetings.

Municipal Budget Circular 72 of 2014/15 states that the cost containment measures “must be implemented to eliminate waste, prioritise spending and ensure savings on six focus areas".

These are: consultancy fees, no credit cards, travel and related costs, advertising, catering and event costs, as well as costs for accommodation”. The cost containment measures were approved by the national cabinet in October last year.

Deputy Finance Minister Mcebisi Jonas has now revealed that the cost containment measures instructions issued by National Treasury are “auditable and this subject to any findings made by the Auditor-General”.

Replying to a question in the National Council of Provinces (NCOP), Jonas said that Auditor-General “will be auditing compliance” with the National Treasury instruction on cost containment measures.

He also revealed that National Treasury would be “including more specific requirements in respect of the reporting on cost containment measures in its monthly reporting template”.

Jonas was replying on behalf of Finance Minister Nhlanhla Nene to a question on how compliance with the National Treasury cost containment measures would be enforced.

He indicated that the Auditor-General will now play a key role in monitoring compliance. - metrominutes