Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 13 : Resolution of Financial Problems

Part 1 : Identification of financial problems

135. Primary responsibility for resolution of financial problems
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(1)The primary responsibility to avoid, identify and resolve financial problems in a municipality rests with the municipality itself.

 

(2)A municipality must meet its financial commitments.

 

(3)If a municipality encounters a serious financial problem or anticipates problems in meeting its financial commitments, it must immediately—
(a)seek solutions for the problem;
(b)notify the MEC for local government and the MEC for finance in the province;
(c)notify organised local government.