Division of Revenue Act, 2014 (Act No. 10 of 2014)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 3 : Matters relating to Schedule 4 to 7 allocations

19. Stopping of allocations
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(1)Despite section 18, the National Treasury may, in its discretion or on request of a transferring national officer or 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 underspend on the allocation, or any programme partially of fully funded by the allocation, in the 2014/15 financial year;
(c)for purposes of the assignment of a function from a province to a municipality, as envisaged in section 10 of the Municipal Systems Act; 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)The National Treasury must, before stopping an allocation in terms of subsection (1)(a), (b) or (d)—
(a)comply with the procedures in section 18(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 thereof, stopped in terms of subsection (1)(a), (b) or (d), 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.