Treasury must confirm stance on use of municipal funds for World Cup tickets
High ranking sources have told the Democratic Alliance (DA) that National Treasury may have withdrawn, or is considering withdrawing, a Treasury Circular prohibiting the use of municipal funds to buy FIFA World Cup tickets.
After receiving this information one week ago I wrote to Finance Minister Pravin Gordhan to enquire whether this directive has been, or will be, withdrawn. I have not yet received a reply.
The World Cup is an opportunity to celebrate the unifying power of sport and South Africa's ability to host a truly world-class event. The use of state funds to buy tickets for councillors or municipal officials would be a cynical misuse of this opportunity for the personal gain of public representatives.
In the circular, distributed to all municipalities by Mr Jan Hattingh - the Chief Director of Local Government Budget Analysis - on 10 February 2010, municipalities are "advised and requested to refrain from using municipal funds to buy 2010 FIFA World Cup tickets and T-shirts for councillors and their spouses and municipal officials since it is in contravention with (the) legislation"
The relevant legislation quoted in the circular is the Municipal Systems Act and the Municipal Finance Management Act. The circular advises that:
"these proposed expenditures will constitute irregular, as well as fruitless and wasteful expenditure, in terms of the MFMA, and therefore must not be incurred. Anyone who instructs the expenditures to proceed will be liable for the expenditure in terms of section 32 of the MFMA, and may be charged for financial misconduct in terms of Chapter 15 of the MFMA"
The Democratic Alliance believes that the continued enforcement of such a directive is critical to preventing the mismanagement of state funds in the coming months.
Not only this, but we believe National Treasury should be formally holding Provincial and National government structures to the terms of similar directives to prevent mismanagement of state funds.
As such, I would ask again that the Finance Minister clarifies Treasury's position.
Statement issued by Tim Harris, MP, Democratic Alliance member of the select committee on finance, June 6 2010
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