Division of Revenue Act, 2010 (Act No. 1 of 2010)Chapter 3 : Conditional allocations to Provinces and MunicipalitiesPart 3 : General matters relating to Schedule 4, 5, 6, 7 or 8 allocations16. Withholding of allocation |
| 1) | Subject to subsections (2) and (3), a transferring national officer may withhold the transfer of a Schedule 4, 5 or 6 allocation, or any portion of such allocation, for a period not exceeding 30 days, if – |
| a) | the province or municipality does not comply with the provisions of this Act or conditions to which the allocation, as provided for in the relevant framework, is subject; |
| b) | roll-overs of conditional allocations approved by the National Treasury in accordance with section 20 have not been spent; or |
| c) | expenditure on previous transfers during the financial year reflects significant under-spending, for which no satisfactory explanation is given. |
| 2) | The Health Professions Training and Development Grant and the National Tertiary Services Grant may not be withheld in terms of this section. |
| 3) | A transferring national officer must, seven working days or such shorter period as may be approved by the National Treasury, prior to withholding an allocation in terms of subsection (1) – |
| a) | give the relevant receiving officer – |
| i) | written notice of the intention to withhold the allocation; and |
| ii) | an opportunity to submit written representations, within those seven days or that shorter period, as to why the allocation should not be withheld; and |
| b) | inform the relevant provincial treasury and the National Treasury. |
| 4) | A notice contemplated in subsection (3) must include the reasons for withholding the allocation and the intended duration of the withholding. |
| 5) |
| a) | The National Treasury may, when a transferring national officer is withholding an allocation in terms of subsection (1), instruct, or approve a request from, that transferring national officer to withhold an allocation for a period longer than 30 days, but not exceeding 120 days, if the withholding will – |
| i) | facilitate compliance with this Act or the conditions to which the allocation is subject; or |
| ii) | minimise the risk of under-spending. |
| b) | A transferring national officer must, when requesting the withholding of an allocation in terms of this subsection, submit proof of its compliance with subsection (3) and any representations received from the receiving officer, to the National Treasury. |
| c) | The transferring national officer must again comply with subsection (3) when the National Treasury issues an instruction or approves a request in terms of paragraph (a). |
| 6) |
| a) | In respect of the Human Settlements Development Grant, a receiving officer may, in consultation with the transferring national officer, the relevant provincial treasury and the National Treasury, withhold a transfer to an accredited municipality, if the conditions set out in subsection (1) exist. |
| b) | A receiving officer, prior to withholding a transfer to an accredited municipality, must comply with the notice requirements stipulated in subsections (3) and (4). |
| c) | A receiving officer may request the transferring national officer to seek the approval of the National Treasury that a transfer to an accredited municipality be withheld for a period longer than 30 days, in terms of subsection (5). |