REPUBLIC OF SOUTH AFRICA
Mr Tim Harris, MP
DA Member of the Select Committee on Finance
Parliament of the Republic of South Africa
P 0 Box 15
Dear Mr Harris,
TREASURY CIRCULAR ON THE USE OF MUNICIPAL FUNDS TO BUY WORLD CUP TICKETS AND T-SHIRTS
I refer to your letter dated 27 May 2010 received by my office on the 02nd June 2010 regarding the above-mentioned Issue.
National Treasury issued the circular that you refer to in response to information received regarding certain municipalities intention to use municipal funds to buy 2010 FIFA World Cup tickets and T-shirts for councillors and municipal officials. The aim of the circular was to make municipalities aware of the legal provisions that pertain to expenditure of this nature and to also encourage them to refrain from making such expenditure.
National Treasury will not be withdrawing the circular as it correctly states the legal position with regards to this kind of expenditure. The circular was also sent to the Office of the Auditor-General so that these matters could be taken into consideration in the auditing of municipality's 2009/2010 annual financial statements later this year. A similar circular was sent to all the accounting officers of provincial departments.
Even though the circular was not sent to national departments the same principles apply given the provisions regarding financial misconduct, irregular expenditure and fruitless and wasteful expenditure In the Public Finance Management Act as well as the provisions In the Code of Conduct for Public Servants.
It is regrettable that you have been wrongly informed in this regard.
PRAVIN J GORDHAN
MINISTER OF FINANCE
Date: - June 7 2010
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