Division of Revenue Act, 2013 (Act No. 2 of 2013)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 3 : Matters relating to Schedule 4 to 7 allocations

18. Stopping of allocation
Purchase cart Previous page Return to chapter overview Next page

 

 

1)Despite section 17, 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 or 5 allocation, or a portion thereof, to a province or municipality-
a)on the grounds of persistent and material non-compliance with this Act;
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 assigned from a province to a municipality, as envisaged in section 10 of the Local Government: Municipal Systems Act, 2000; or
d)if a province implementing an infrastructure project does not comply with construction industry best practise standards and guidelines, as identified and approved by the National Treasury.

 

2)Except where a function is assigned from a province to a municipality, the National Treasury must, before stopping an allocation in terms of this section-
a)comply with section 17(4)(a), and in respect of a municipality, also with section 38 of the Municipal Finance Management Act; and
b)inform the relevant provincial treasury of its intention to stop the allocation.

 

3)The National Treasury must give notice in the Gazette of the stopping of an allocation in terms of this section and include in the notice the effective date of, and reason for, the stopping.

 

4)
a)The National Treasury may, by notice in the Gazette, approve that an allocation or any portion of such allocation stopped in terms of this section, be utilised to meet any outstanding statutory or contractual financial commitment of the province or municipality in question.
b)The utilisation of funds envisaged in this subsection is a direct charge against the National Revenue Fund.