Question NW940 to the Minister of Finance
18 April 2023 - NW940
Buthelezi, Mr EM to ask the Minister of Finance
Whether, with reference to the use of exorbitant funds by municipalities on overtime payments, the National Treasury intends to engage with the Department of Cooperative Governance and Traditional Affairs to investigate the financial sustainability and soundness of the specified payments on the budgets in accordance with the specified department’s mandate to promote good governance through accountable, economic, efficient, equitable and sustainable management; if not, why not; if so, (a) on what date and (b) what are the further, relevant details?
Reply:
No, as we need more clarity on what specific problems or audits where exorbitant spending on overtime has been identified as a problem requiring National Treasury to intervene. Further, overtime is regulated by the Basic Conditions of Employment Act (BCEA-section 10) and the SALGA Collective Agreement.
There are no planned meetings between the National Treasury and Department of Cooperative Governance to discuss overtime payments by municipalities.
However, there are measures currently in place to guide the implementation of Overtime and the related payments, such as MFMA Circular No. 86 on Cost Containment.
Municipalities are advised that overtime budgets must not exceed 5 per cent of the total employee related cost budget as a norm to guide them in this regard.