| (1) | If an MEC has reason to believe that a municipality in the province cannot or does not fulfil a statutory obligation binding on that municipality or that maladministration, fraud, corruption or any other serious malpractice has occurred or is occurring in a municipality in the province, the MEC must— |
| (a) | by written notice-to the municipality, request the municipal council or municipal manager to provide the MEC with information required in the notice; or |
| (b) | if the MEC considers it necessary, designate a person or persons to investigate the matter. |
| (1A) | The MEC must table a report detailing the outcome of the investigation in the relevant provincial legislature within 90 days from the date on which the MEC designated a person or persons to investigate the matter and must simultaneously send a copy of such report to the Minister, the Minister of Finance and the National Council of Provinces. |
[Section 106(1A) inserted by section 11(a) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
| (2) | In the absence of applicable provincial legislation, the provisions of sections 2, 3, 4, 5 and 6 of the Commissions Act, 1947 (Act No. 8 of 1947), and the regulations made in terms of that Act apply, with the necessary changes as the context may require, to an investigation in terms of subsection (1)(b). |
| (a) | An MEC issuing a notice in terms of subsection (1)(a) or designating a person to conduct an investigation in terms of subsection (1)(b), must within 14 days submit a written statement to the National Council of Provinces motivating the action. |
| (b) | A copy of the statement contemplated in paragraph (a) must simultaneously be forwarded to the Minister and to the Minister of Finance. |
[Section 106(3) substituted by section 18(b) of Act No. 19 of 2008]
| (a) | The Minister may request the MEC to investigate maladministration, fraud, corruption or any other serious malpractice which, in the opinion of the Minister, has occurred or is occurring in a municipality in the province. |
| (b) | The MEC must table a report detailing the outcome of the investigation in the relevant provincial legislature within 90 days from the date on which the Minister requested the investigation and must simultaneously send a copy of such report to the Minister, the Minister of Finance and the National Council of Provinces. |
[Section 106(4) added by section 18(c) of Act No. 19 of 2008]
| (a) | Where an MEC fails to conduct an investigation within 90 days, notwithstanding a request from the Minister in terms of subsection (4)(a), the Minister may in terms of this section conduct such investigation. |
| (b) | The Minister must send a report detailing the outcome of the investigation referred to in paragraph (a) to the President. |
[Section 106(5) substituted by section 11(b) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
| (6) | If an investigation warrants such a step, the municipality must institute disciplinary proceedings against the person or persons impli-cated in the report in accordance with the systems and procedures referred to in section 67, read with Schedule 2, and report the outcome to the MEC or the Minister, as the case may be, within 14 days of finalisation. |
[Section 106(6) inserted by section 11(c) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
