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

Chapter 3 : Municipal Revenue

Part 1 : Municipal bank accounts

8. Primary bank account
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(1)A municipality must have a primary bank account. If a municipality—
(a)has only one bank account, that account is its primary bank account: or
(b)has more than one bank account, it must designate one of those bank accounts as its primary bank account.

 

(2)The following moneys must be paid into a municipality's primary bank account:
(a)All allocations to the municipality, including those made to the municipality for transmission to a municipal entity or other external mechanism assisting the municipality in the performance of its functions:
(b)all income received by the municipality on its investments;
(c)all income received by the municipality in connection with its interest in any municipal entity, including dividends;
(d)all money collected by a municipal entity or other external mechanism on behalf of the municipality; and
(e)any other moneys as may be prescribed.

 

(3)A municipality must take all reasonable steps to ensure that all moneys referred to in subsection (2) are paid into its primary bank account.

 

(4)No organ of state in the national, provincial or local sphere of government may transfer an allocation of money referred to in subsection (2) to a municipality except through the municipality's primary bank account. All allocations due by an organ of state to a municipal entity must be made through the parent municipality or if there are more than one parent municipality, any of those parent municipalities as may be agreed between the parent municipalities.

 

(5)The accounting officer of a municipality must submit to the National Treasury, the relevant provincial treasury and the Auditor-General, in writing, the name of the bank where the primary bank account of the municipality is held, and the type and number of the account. If a municipality wants to change its primary bank account, it may do so only after the accounting officer has informed the National Treasury and the Auditor-General, in writing, at least 30 days before effecting the change.