Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 13 : Resolution of Financial ProblemsPart 2 : Provincial interventions136. Types of provincial interventions |
| (1) | If the MEC for local government in a province becomes aware that there is a serious financial problem in a municipality, the MEC must promptly— |
| (a) | consult the mayor of the municipality to determine the facts; |
| (b) | assess the seriousness of the situation and the municipality’s response to the situation; and |
| (c) | determine whether the situation justifies or requires an intervention in terms of section 139 of the Constitution. |
| (2) | If the financial problem has been caused by or resulted in a failure by the municipality to comply with an executive obligation in terms of legislation or the Constitution, and the conditions for an intervention in terms of section 139(1) of the Constitution are met, the provincial executive must promptly decide whether or not to intervene in the municipality. If the provincial executive decides to intervene, section 137 applies. |
| (3) | If the municipality has failed to approve a budget or any revenue-raising measures necessary to give effect to the budget, as a result of which the conditions for an intervention in terms of section 139(4) of the Constitution are met, the provincial executive must intervene in the municipality in accordance with section 26. |
| (4) | If the municipality, as a result of a crisis in its financial affairs, is in serious or persistent material breach of its obligations to provide basic services or to meet its financial commitments, or admits that it is unable to meet its obligations or financial commitments, as a result of which the conditions for an intervention in terms of section 139(5) of the Constitution are met, the provincial executive must intervene in the municipality in accordance with section 139. |