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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)


Municipal Cost Containment Regulations, 2019

4. Cost containment policies


(1) Each municipality or municipal entity must develop or revise and implement a cost containment policy which must—
(a) in the case of a municipality, be adopted by the municipal council, and in the case of a municipal entity, by the board of directors as part of its budget related policies;
(b) define a municipality or municipal entity's objectives for the use of consultants; and
(c) be consistent with the Act and these Regulations.


(2) The cost containment policy of a municipality or a municipal entity contemplated in subregulation (1) must—
(a) be in writing;
(b) give effect to these Regulations;
(c) be reviewed annually, as may be appropriate;
(d) be communicated on the municipality's or municipal entity's website; and
(e) set out—
(i) monitoring measures for ensuring implementation of the policy;
(ii) procedures for the annual review of the policy; and
(iii) consequences for non-adherence to the measures contained therein.