Division of Revenue Act, 2023 (Act No. 5 of 2023)Chapter 3 : Conditional Allocations to Provinces and MunicipalitiesPart 3 : Matters relating to Schedule 4 to 7 allocations20. Conversion of allocations |
| (1) | If satisfied that the relevant provincial department or municipality has demonstrated the capacity to implement projects, the National Treasury may, at the request of the transferring officer and after consultation with the receiving officer, convert any portion of— |
| (a) | an allocation listed in Part B of Schedule 6 to one listed in Part B of Schedule 5; |
| (b) | the School Infrastructure Backlogs Grant to the Education Infrastructure Grant; or |
| (c) | the National Health Insurance Indirect Grant listed in Part A of Schedule 6 to the Health Facility Revitalisation Grant, District Health Programmes Grant, Human Resources and Training Grant or the National Health Insurance Grant listed in Part A of Schedule 5. |
| (2) | The National Treasury may, after consultation with the relevant transferring officer, receiving officer and provincial treasury, convert any portion of an allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6, if it is satisfied that— |
| (a) | the conversion shall prevent under-expenditure or improve the level of service delivery in respect of the allocation in question; |
| (b) | the affected national or provincial department has demonstrated the capacity to implement projects; |
| (c) | the transferring officer has made a demonstrable effort to strengthen the capacity of the receiving officer to implement the allocation, but the receiving officer is still not capable of meeting all the requirements of the allocation; and |
| (d) | there is a history of poor performance in the previous two financial years for the relevant allocation to the receiving officer, including withholding and stopping of allocations. |
| (3) | If satisfied that a municipality has failed to follow the applicable procurement prescripts prescribed in terms of the Municipal Finance Management Act, the National Treasury may, at the request of the transferring officer or in its discretion, after consultation with the relevant transferring officer and receiving officer, convert any portion of an allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6. |
| (4) |
| (a) | Any portion of an allocation, except the School Infrastructure Backlogs Grant, converted in terms of subsections (1), (2) or (3) must— |
| (i) | be used for the same province or municipality to which the allocation was originally made; and |
| (ii) | if— |
| (aa) | possible, be used to implement the same project or projects that were planned if the allocation had not been converted; or |
| (bb) | not possible, the receiving officer must sign an agreement that defines any new project to be funded, before it is implemented. |
| (b) | The School Infrastructure Backlogs Grant must be used— |
| (i) | for the same province to which the allocation was originally made; and |
| (ii) | to implement the same project or projects that were planned if the allocation had not been converted. |
| (5) | The National Treasury must— |
| (a) | give notice in the Gazette of a conversion in terms of subsection (1), (2) or (3); and |
| (b) | provide a copy of the notice to the transferring officer and each affected receiving officer. |
| (6) | A conversion in terms of subsection (1), (2) or (3) takes effect on the date of publication of the notice in terms of subsection (5)(a). |
| (7) | If an allocation listed in Schedule 7 is insufficient for a classified disaster referred to in section 25(3)(a), the National Treasury may, after consultation with, or on the request of, the relevant transferring officer, convert any portion of— |
| (a) | the Provincial Disaster Response Grant listed in Part A of Schedule 7 to the Municipal Disaster Response Grant listed in Part B of Schedule 7; or |
| (b) | the Municipal Disaster Response Grant listed in Part B of Schedule 7 to the Provincial Disaster Response Grant listed in Part A of Schedule 7. |
| (8) | The National Treasury must— |
| (a) | in the notice published in terms of section 25(3)(c), include notification of the conversion in terms of subsection (7) and the effective date referred to in subsection (9); and |
| (b) | provide a copy of the notice to the transferring officer. |
| (9) | A conversion in terms of subsection (7) takes effect on the date that the National Treasury approves it. |