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Division of Revenue Act, 2011 (Act No. 6 of 2011)

Chapter 3 : Conditional allocations to Provinces and Municipalities

Part 3 : Matters relating to Schedule 4 to 9 Allocations

15. Spending in terms of purpose and subject to conditions

 

 

1) Despite anything to the contrary contained in any law, an allocation referred to in Schedules 4 to 9 may only be utilised for the purpose stipulated in the Schedule concerned and in accordance with the framework published in terms of section 14.

 

2) A receiving officer may not transfer any Schedule 5 or 6 allocation or a portion of such an allocation to any other entity or other sphere of government for the performance of a function envisaged in terms of the allocation, unless the receiving officer has entered into a payment schedule with the entity or other sphere of government that will be performing the function, that has been approved by the National Treasury, and—
a) it is a transfer that is approved in the budget of the receiving province or municipality or a framework published in terms of section 14;
b) it is a payment for services rendered or goods received, which services or goods were procured in accordance with the supply chain management policy or procurement policy of the relevant province or municipality and for which adequate documentation for payment has been received; or
c) in the case of an advance payment or a transfer which is not consistent with the budget of the receiving province or municipality—
i) the receiving officer has certified to the National Treasury that the transfer is not an attempt to artificially inflate its spending estimates and that there are good reasons for the advance payment or transfer; and
ii) the National Treasury has approved the advance payment or transfer.

 

3) No public entity, other than Eskom Holdings Limited in respect of funds received from the Department of Energy and water boards in respect of funds received from the Department of Water Affairs and the Department of Human Settlements for the implementation of Schedule 7 allocations, may receive funds for the provision of a municipal service or municipal function on behalf of a municipality from a national or provincial organ of state, except via the municipality responsible for that service or function, unless the National Treasury approves otherwise in respect of municipalities it deems to have low capacity.

 

4) In respect of the Human Settlements Development Grant, a receiving officer and a municipality with level three accreditation must, by 31 May 2011, comply with the requirements of subsection (2), by—
a) entering into a payment schedule; and
b) submitting the payment schedule to the National Treasury for approval.

 

5) A receiving officer must request the National Treasury to amend the payment schedule referred to in subsection (4), in accordance with the procedure set out in section 22, in instances where a transfer to a municipality with level three accreditation has been withheld or stopped in terms of section 16 or 17.