Gas Regulator Levies Act, 2002
R 385
Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 5 : Co-Operative Government38. Stopping of funds to municipalities |
| (1) | The National Treasury may stop— |
| (a) | the transfer of funds due to a municipality as its share of the local government's equitable share referred to in section 214(1)(a) of the Constitution, but only if the municipality commits a serious or persistent breach of the measures established in terms of section 216(1) of the Constitution; or |
| (b) | the transfer of funds due to a municipality as an allocation referred to in section 214(1)(c) of the Constitution, but only if the municipality or the municipal entity for which the funds are destined— |
| (i) | commits a serious or persistent breach of the measures established in terms of section 216(1) of the Constitution; or |
| (ii) | breaches or fails to comply with any conditions subject to which the allocation is made. |
| (2) | Before the National Treasury stops the transfer of funds to a municipality in terms of subsection (1)(a) or (b), it must— |
| (a) | give the municipality an opportunity to submit written representations with regard to the proposed stopping of the funds; |
| (b) | inform the MEC for local government in the province; and |
| (c) | consult the Cabinet member responsible for the national department making the transfer. |
| (3) | If the stopping of funds in terms of subsection (1)(a) or (b) affects the provision of basic municipal services in the municipality, the provincial executive must monitor the continuation of those services. Section 139 of the Constitution applies if the municipality cannot or does not fulfil its obligations with regard to the provision of those services. |
| (4) | When considering whether to stop the transfer of funds to a municipality in terms of subsection (1)(a) or (b)(i), the National Treasury must take into account all relevant facts, including— |
| (a) | the municipality’s compliance with the requirements of this Act, in particular those relating to— |
| (i) | annual financial statements, including the submission to the Auditor-General of its annual financial statements; and |
| (ii) | budgets, including the submission of information on the budget and implementation of the budget to the National Treasury and the relevant provincial treasury; and |
| (b) | the municipality’s co-operation with other municipalities on fiscal and financial matters, in the case of district and local municipalities. |
