Office Hours Mon-Fri: 08:00-16:30 | Call Center +27 12 369 8000
Home | Contact Us


Upcoming Events





Quick Links

LG Performance Management Seminar

SALGA Council of Mayors

3rd SALGA National Communicators Forum

13th National Municipal Managers Forum

HR Best Practices Seminar

Municipal Innovative Infrastructure Financing

SALGA National Working Groups

SALGA Women's Commission-2017

SALGA Research Colloquium

SALGA Council of Speakers

SALGA Energy Summit


Social Media

Follow Us on Social Media




Update on SALGA concerns with procedural and substantive aspects of the Municipal Cost Containment Regulations, 2019




Posted: 24 June 2019

Recently on 7 June 2019, the Minister of Finance, in concurrence with the Minister of Cooperative Governance and Traditional Affairs, promulgated the Municipal Cost Containment Regulations, as an attempt to “ensure that resources of a municipality and municipal entity are used effectively, efficiently and economically by implementing cost containment measures”.

The Regulations purports to apply to all municipal officials and political office bearers in municipalities and will come into effect as from 1 July 2019, coinciding with the start of the new financial year for municipalities.
Deliberations by the SALGA NEC at its meeting on 13 June 2019, re-affirms its longstanding view that SALGA is in support of any initiative which seeks to introduce efficiencies and manage and contain costs within municipalities, as already initiated and implemented by a number of municipalities, the SALGA NEC, however, has procedural and substantive concerns with the regulations.

Particular concerns relate to whether all procedural aspects, as outlined and prescribed in the Municipal Finance Management  Act (MFMA), have been complied with by the Minister of Finance prior to the promulgation of the Regulations, these include:-

  • Securing concurrency from the Minister of COGTA;
  • consultation on the substance of the regulations with all relevant stakeholders, including organized local government;
  • obtaining public comments on the draft regulations in the Government Gazette for public comments; and
  • subjecting the draft regulation to parliament for scrutiny before their promulgation.

A further concern is that the regulations are not in line with the MFMA itself and are in direct contravention of other related legislation, particularly as it relates to the remuneration of public office bearers (Councillors).
Informed by these concerns, the SALGA Presidency, as mandated by the SALGA NEC, has engaged with both Ministers of Finance and Cooperative Governance and Traditional Affairs respectively, with a view to find an amicable solution to the concerns. Following the respective engagements the Presidency wishes to confirm progress as follows:-

1.ENGAGEMENT WITH MINISTER OF COGTA: Following a meeting with the Minister of COGTA, Hon. Dlamini Zuma on Friday, 14 June 2019, it was agreed to place the matter as an item for discussion at the COGTA MinMEC scheduled for 19 June 2019. After deliberations the COGTA MinMEC resolved to recommend that the implementation of the Municipal Cost Containment Regulations should be stayed until the concerns of all parties (COGTA, SALGA and MECs for COGTA) have been addressed; and

2.ENGAGEMENT WITH MINISTER OF FINANCE: Following a brief interaction with the Minister of Finance on 14 June 2019, it was agreed to convene a formal meeting on the sidelines of the State of the Nation Address. This meeting was duly held on 20 June 2019. A key outcome of the said meeting was that urgent engagements with all stakeholders should be convened to allow for the tabling and consideration of specific concerns, with a view that these deliberation will determine the next steps with regard to the Regulations. The first of these meetings are already scheduled, at technical level, for Monday 24 June 2019.    
The SALGA Presidency has confidence that the agreements as reached above will lay the foundation for an amicable solution to the matter.



Previous News Pages: 1 2 3

Site Map:

Welcome to SALGA
Our Constitution
Governance Framework
Our Structure
Executive Management Team
National Executive Committee
Provincial Executive Committee
National Working Groups
Provincial Working Groups
Provincial Overviews

Media Room
Press Releases
Media Statements
Image Gallery
SALGA Media Enquiries


Municipal Focus
About Municipalities
Guidelines for Municipalities
Municipal Audit Outcomes
Municipal Finance
Municipal Planning
Treasury Reports
Municipal Contact Details

Documents and Publications
Annual Reports
Annual Performance Plans
Strategic Plans
Corporate Presentation
Voice Magazine
National Members Assembly
National Municipal Managers Forum


Knowledge Hub
Energy Efficiency & Renewable Energy
SALGA Lexis Nexis Legal Content
Good Governance Learning Network
Learning Framework for Local Government
Local Government Briefs
Knowledge Hub Documents
Knowlede Hub Publications
Knowledge Portals

Stakeholder Relations
Stakeholder Management Framework
Stakeholder Management Directory



Suppliers & Vendors
Tender Notices
Terms of Reference for Tenders
Responsive Bidders to Tenders
Results to Bids
Central Supplier Database
Standard Bid Documents
Evaluation Criteria for Procurement
Government Procurement Conditions of Contract
Request for Proposals

SALGA Offices

Copyright © 2017
Legal Notice Disclaimer

Social Media