Cost containment measures applied at Jozini Municipality

Jozini Municipality has implemented a council-approved municipal financial viability and recovery plan and cost containment regulations set to be implemented from 20 January to 30 June.

In a letter from the municipality’s acting accounting officer (AO), LB Mpontshane to councillors and staff dated 20 January, it is said that this was done in light of the municipality’s financial instability as at 31 December 2024.

The recovery plan entails the immediate suspension of travel claims, overtime, standby and acting allowances, accommodation costs and municipal-funded events.

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Based on the availability of funds, to allow for the municipality to continue operating normally, the following are permitted but must be approved by the AO:
· Monthly salary runs

· Debit orders with valid contracts

· Contracted services

· Statutory payments

· Conditional grant-related payments

· Indigent burial support

· Essential services such as disaster management, fire and rescue services

· Strategic operations and maintenance expenses

· Outstanding invoices

The statement indicated that the municipality’s management has begun to aggressively implement ‘numerous strategies’ to improve the institution’s financial health.

“Although we are mindful of the few possible inconveniences that this temporary unstable financial position of the municipality may have on the day-to-day operations, we are confident that Council’s decision to adopt the financial viability and recovery plan was necessary and a wise one, and in the best interest of the municipality and the people of Jozini,” reads the letter.

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