Division of Revenue Act, 2011 (Act No. 6 of 2011)Chapter 3 : Conditional allocations to Provinces and MunicipalitiesPart 3 : Matters relating to Schedule 4 to 9 Allocations17. Stopping of allocation |
| 1) | Despite section 16, the National Treasury may, in its discretion or at the request of a transferring national officer, or a receiving officer, stop the transfer of a Schedule 4, 5 or 6 allocation referred to in section 16(1) to a province or municipality— |
| a) | on the grounds of persistent and material non-compliance with— |
| i) | this Act; or |
| ii) | a condition to which the allocation, as provided for in the relevant framework, is subject; |
| b) | if the National Treasury anticipates that a province or municipality will substantially under-spend on that programme or allocation in the financial year; |
| c) | if a function is reassigned from a province to a municipality; or |
| d) | if a province implementing an infrastructure project does not comply with best practice standards and guidelines made in terms of section 5 of the Construction Industry Development Board Act, 2000 (Act No. 38 of 2000). |
| 2) | Except where a function is reassigned from a province to a municipality, the National Treasury must, when stopping an allocation in terms of this section— |
| a) | comply with the requirements set out in section 16(3)(a), and in respect of a municipality, also with the requirements of section 38 of the Municipal Finance Management Act; and |
| b) | inform the relevant provincial treasury of its intention to stop the allocation. |
| 3) | Any stopping of an allocation contemplated in subsection (1) must, together with an explanatory memorandum, be published by the National Treasury in the Gazette. |
| 4) |
| a) | The Minister may, by notice in the Gazette, approve that an allocation or any portion of such allocation stopped in terms of subsection (1), be utilised to meet that province’s or municipality’s outstanding statutory and contractual financial commitments. |
| b) | The utilisation of funds contemplated in this subsection is a direct charge against the National Revenue Fund. |