Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 12 : Financial Reporting and Auditing

Purchase

(1)

If the accounting officer of a municipality or municipal entity fails to submit financial statements to the Auditor-General in accordance with section 126(1) or (2), or if the mayor fails to table the annual report of the municipality or a municipal entity in the council in accordance with section 127(2)—

(a)	the mayor must promptly table in the council a written explanation setting out the reasons for the failure;

(b)	the Auditor-General, in the case of any failure to submit financial statements for auditing, must promptly—

(i)	inform the speaker of the council, the National Treasury and the MEC for local government and the MEC for finance in the province of such failure; and

(ii)	issue a special report on the failure to the relevant provincial legislature; and

(c)	the municipal council—

(i)	must request the speaker or any other councillor to investigate the reasons for the failure and report to the council;

(ii)	must take appropriate steps to ensure that the financial statements are submitted to the Auditor-General or that the annual report, including the financial statements and the audit report on those statements, is tabled in the council, as the case may be; and

(iii)

may order that disciplinary steps be taken against the accounting officer or other person responsible for the failure;

(d)	the provincial executive may intervene in the municipality in terms of section 139 of the Constitution;

(e)	the National Treasury may take appropriate steps against the municipality in terms of section 5(2)(e); and

(f)	the provincial treasury may take appropriate steps against the municipality in terms of section 5(4)(d).

(2)	The Auditor-General must submit to Parliament and the provincial legislatures—

(a)	by no later than 31 October of each year, the names of any municipalities or municipal entities which have failed to submit their financial statements to the Auditor-General in terms of section 126; and

(b)	at quarterly intervals thereafter, the names of any municipalities or municipal entities whose financial statements are still outstanding at the end of each interval.