Division of Revenue Act, 2020 (Act No. 4 of 2020)

Chapter 6 : General

38. Transitional measures for municipal election in 2021
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(1)

(a) A releasing municipality must continue to spend its allocations for the 2020/21 financial year made in terms of this Act, in that particular area or municipality, as if that area was not transferred to a receiving municipality, unless the affected municipalities have entered into an agreement that ensures that the transferred area or municipality is not negatively affected.
(b) The transferring officer of an allocation made in terms of this Act and the receiving municipality must monitor that the releasing municipality complies with paragraph (a).
(c) The releasing municipality must, at the request of the transferring officer, the receiving municipality or the National Treasury, demonstrate compliance with paragraph (a).

 

(2)

(a) section 18 or 19 apply, with the necessary changes, where a releasing municipality fails to comply with subsection (1)(a) or (c) in respect of a Schedule 4, 5, 6 or 7 allocation.
(b) The National Treasury may, where it withholds or stops an allocation in terms of paragraph (a), after consultation with the transferring officer, determine that a portion of the allocation be reallocated to the receiving municipality.

 

(3) The National Treasury may, where a releasing municipality fails to comply with subsection (1)(a) or (c), reallocate a portion of the releasing municipality’s equitable share allocation, referred to in section 5, to the receiving municipality.

 

(4)
(a) The allocations referred to in sections 5(2) and 8(2) are subject to adjustments required following a redetermination in terms of section 21(1)(b) of the Municipal Demarcation Act.
(b) The transferring officer of a Schedule 4, 5, 6 or 7 allocation must, by 2 October 2020, inform the National Treasury of any adjustments to the allocations, referred to in section 8(2), that must be reflected in the Division of Revenue Act for the 2021/22 financial year.