Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 5 : Co-Operative Government39. Stopping of equitable share allocations to municipalities |
| (1) | A decision by the National Treasury to stop the transfer to a municipality of funds referred to in section 38(1)(a)— |
| (a) | lapses after the expiry of 120 days, subject to approval of the decision in terms of paragraph (b) of this subsection and renewal of the decision in terms of subsection (2); and |
| (b) | may be enforced immediately, but will lapse retrospectively unless Parliament approves it following a process substantially the same as that established in terms of section 75 of the Constitution, and prescribed by the joint rules and orders of Parliament. This process must be completed within 30 days of the decision by the National Treasury to stop the transfer of the funds. |
| (2) | Parliament may renew a decision to stop the transfer of funds referred to in section 38(1)(a) for no more than 120 days at a time, following the process established in terms of subsection (1)(b) of this section. |
| (3) | Before Parliament approves or renews a decision to stop the transfer of funds to a municipality— |
| (a) | the Auditor-General must report to Parliament, if requested to do so by Parliament; and |
| (b) | the municipality must be given an opportunity to answer the allegations against it, and to state its case, before a committee. |