City Cuts R130m in Spending in Line With Cost Containment Measures

The City’s cost containment measures, developed in line with the National Treasury’s Municipal Cost Containment Regulations, have translated into R130 million due to reduction of spending on indirect costs such as events, travelling, catering, workshops, printing and many more.

Spending on these items has decreased by 51.5% compared to the approved budget.

Responding to findings by the Auditor-General’s office, City Manager Dr Imogen Mashazi pointed out that the City remains committed to cost containment measures so that the money can be utilised on essential services and infrastructure development.

“It has been our mission to cut indirect costs because we have always believed that in most instances the City could do without some of this unnecessary expenditure,” she pointed out. “Why do you cater for officials for a meeting that lasts less than two hours? This just did not make sense.”

She emphasised that the City will continue to spearhead a drive to redirect as much funds as possible from non-core items to fund the core mandate of the local authority.

The City’s success in this regard can be attributed to its aggressive cost containment measures which were systematically introduced late 2016. These were boosted by the Municipal Cost Containment Regulations gazetted on 9 June 2019.

“We, as a City, we remain committed to more cost containment measures and therefore we shall be looking at more areas where savings can be made, including electricity and telephone usage within our buildings,” Dr Mashazi concluded.