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


Municipal Cost Containment Regulations, 2019

6. Vehicles used for political office-bearers


(1) The threshold limit for vehicle purchases relating to official use by political office-bearers must not exceed R700 000 or 70% (VAT inclusive) of the total annual remuneration package for the different grades of municipalities, as defined in the Public Office Bearers Act and the notices issued in terms thereof by the Minister of Cooperative Governance and Traditional Affairs, whichever is lower.


(2) The procurement of vehicles in subregulation (1) must be undertaken using the national government transversal contract mechanism, unless it may be procured at a lower cost through other procurement mechanisms.


(3) Before deciding to procure a vehicle as contemplated in subregulation (2), the accounting officer or delegated official must provide the council with information relating to the following criteria which must be considered:
(a) status of current vehicles;
(b) affordability of options including whether to procure a vehicle as compared to rental or hire thereof, provided that the most cost effective option is followed and the cost is equivalent to or lower than that contemplated in subregulation (1);
(c) extent of service delivery backlogs;
(d) terrain for effective usage of the vehicle; and
(e) any other policy of council.


(4) If the rental referred to in subregulation (3) is preferred, the accounting officer must review the costs incurred regularly to ensure that value for money is obtained.


(5) Regardless of their usage, vehicles for official use by political office bearers may only be replaced after completion of 120 000 kilometres.


(6) Notwithstanding subregulation (5), a municipality or municipal entity may replace a vehicle for official use by political office bearers before the completion of 120 000km only in instances where the vehicle has a serious mechanical problem and is in a poor condition and subject to obtaining a detailed mechanical report by the vehicle manufacturer or approved dealer.


(7) An accounting officer must ensure that there is a policy that addresses the use of municipal vehicles for official purposes.