DocumentClosedreport
Cost-Containment-Policy-2026-2027.pdf
Tsantsabane Local MunicipalityRef: S MUST INCLUDE 15
Official source
Source domain: tsantsabane.gov.za
Collected on 13 July 2026
Always confirm details on the official source before acting.
What this means
This document is the Tsantsabane Local Municipality “Cost Containment Policy 2026/27”, issued under a council resolution (ITEM SCM …………. /2026). It sets immediate cost-containment measures across travel and subsistence, acting allowances, overtime, catering, events/advertising/sponsorships, communication, conference/workshop attendance, internal training/venues, and engagement of consultants. Key rules include pre-authorised travel using municipal fleet, limits on overnight accommodation and hotel rates (e.g., domestic hotel accommodation linked to travel not exceeding R1 500 per night per person), overtime limits (no more than 40 hours per month paid out), restrictions on catering and alcohol, limits on conference delegations (three delegates unless approved), and consultant contracting requirements including gap analysis and value-for-money/fee benchmarks.
What this document offers
Read out of this document by Govermate's AI, in its own words. Each one quotes the line it came from — confirm on the official source before acting.
spending limitOngoing
Domestic hotel accommodation cap linked to travel and subsistence (R1 500 per night per person)
The policy sets a maximum domestic hotel accommodation rate linked to travel and subsistence of R1 500 per night per person (including dinner, breakfast and parking), with National Treasury able to periodically review the amount.
- Who it is for
- Municipal officials and councillors arranging domestic accommodation linked to travel and subsistence
- How to act on it
- When booking domestic hotel accommodation linked to travel and subsistence, ensure the total does not exceed R1 500 per night per person (including dinner, breakfast and parking).
Show the line this came from
1.9.5 Domestic hotel accommodation linked to travel and subsistence may not exceed R1 500 per night per person (including dinner, breakfast and parking). National Treasury may periodically review this amount.
policy compliance requirement for travel and subsistenceOngoing
Implement cost-containment measures for travel and subsistence (pre-authorised municipal travel)
The policy sets rules for how municipal travel and subsistence costs must be controlled, including requiring pre-authorisation before costs are incurred, using municipal fleet for official trips, and limiting overnight accommodation and hotel rates.
- Who it is for
- Directors, municipal officials and councillors who arrange or undertake official travel for Tsantsabane Local Municipality
- How to act on it
- Use the municipality’s delegated approval process to obtain pre-authorisation before incurring travel costs; ensure travel uses municipal fleet and complies with the overnight accommodation and hotel rate limits.
Show the line this came from
The following measures must be implemented, consistently with immediate effect to ensure the containment of costs: - 1. TRAVEL AND SUBSISTENCE Measure Ensure effective control over travel claims. Controls 1.1 Directors must implement systems in their respective Directorates to ensure cost- effective and time efficient travelling. 1.2 Travelling must be pre-authorised by the appropriate delegated official, before such costs are incurred.
approval exception for travel classOngoing
Business class ticket exception for employees with disabilities or special needs (where flight time is 5 hours or less)
The policy allows the Municipal Manager to approve business class tickets for employees with disabilities or special needs when the flight time is five (5) hours or less, instead of the default economy-class rule.
- Who it is for
- Employees with disabilities or special needs travelling for official purposes under Tsantsabane Local Municipality
- How to act on it
- Request approval from the Municipal Manager to purchase business class tickets for the qualifying flight time.
Show the line this came from
Only economy class tickets to be purchased for employees and Councillors, where the flying time of the flight is five (5) hours or less. 1.9.2 The Municipal Manager may approve the purchase of business class tickets for employees with disabilities or for those with special needs, where the flying time is five (5) hours or less.
Facts
Reference
S MUST INCLUDE 15
Amounts
R 1 500, R 2 000
Key Takeaways
- Organisation: Tsantsabane Local Municipality
- Policy title: Cost Containment Policy 2026/27
- Council resolution reference: ITEM SCM …………. /2026
- Immediate effect requirement: measures must be implemented consistently with immediate effect
- Travel must be pre-authorised by delegated official before costs are incurred
- Officials must use municipal fleet for all official trips
- Travel outside the province must be pre-approved by the Municipal Manager
- No travel and subsistence allowance for employees/non-employees attending interviews
- Overnight accommodation limited to road distance exceeding 500 km (return journey)
- Economy class tickets only where flight time is 5 hours or less; business class only for employees with disabilities/special needs (Municipal Manager may approve)
- Domestic hotel accommodation linked to travel and subsistence may not exceed R1 500 per night per person (including dinner, breakfast and parking); Municipal Manager may exceed with approval in peak holiday periods or abnormal guest increases
- Acting allowances: acting is for experience only and not for monetary benefit; performance conditions required before any monetary benefit
- Overtime: only with budget provision and after need analysis; planned overtime monthly submission; no more than 40 hours per month paid out (time off instead); overtime over 40 hours must be authorised by Municipal Manager before working
- Catering: no catering for meetings with only municipal officials; accounting officer may allow catering for qualifying events lasting 5+ continuous hours
- Entertainment allowances: capped at R2 000 per person per financial year; National Treasury may review
- No expenses on alcoholic beverages; no team building/social functions financed from municipal budgets or suppliers/sponsors
- Events/advertising: eliminate wasteful expenditure on events and advertising in magazines/TV/newspapers; use cost-effective alternatives like websites
- Communication: newsletters quarterly in electronic format on municipal website/intranet; printed copies only for stakeholders approved by Municipal Manager; discontinue newspapers for officials
- Mobile communication services must use National Treasury transversal term contracts
- Conferences/workshops: attendance only when absolutely necessary; director must motivate to Municipal Manager; early registration discounts required; no late registration; abroad conferences limited to minimum/none; delegation outside municipality restricted to three delegates unless Municipal Manager approves
- Consultants: contract only after gap analysis confirms lack of skills/resources; remuneration must be at or below specified fee benchmarks (SAICA audit guidelines, DPSA hourly fee guide, or professional regulator rates); contracts must include 15% retention/penalty clauses for poor performance; value-for-money required; time-and-cost basis with start/end dates; travel/subsistence for consultants must follow government travel policy and contract pricing
- Tsantsabane Local Municipality
- Municipal Manager
- Budget and Treasury Section
- National Treasury
- Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)
- South African Constitution (section 152 referenced)
- Municipal Cost Containment Regulations 2018
- SALGBC Collective Agreements
- Basic Conditions of Employment Act