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Disaster Management Act, 2002 (Act No. 57 of 2002)

Chapter 6 : Funding of post-disaster recovery and rehabilitation

56. Guiding principles

 

(1) This Chapter is subject to sections 16 and 25 of the Public Finance Management Act, 1999, which provide for the use of funds in emergency situations.

 

(2) When a disaster occurs the following principles apply–
(a) National, provincial and local organs of state may financially contribute to response efforts and post-disaster recovery and rehabilitation.
(b) The cost of repairing or replacing public sector infrastructure should be borne by the organ of state responsible for the maintenance of such infrastructure.

 

(3) The Minister may, in the national disaster management framework prescribe a percentage of the budget, or any aspect of a budget of a provincial organ of state or a municipal organ of state, as the case may be, as a threshold for accessing additional funding from the national government for response efforts.

 

(4) Any financial assistance provided by a national, provincial or municipal organ of' state in terms of subsection (2)(a) must be in accordance with the national disaster management framework and any applicable post-disaster recovery and rehabilitation policy of the relevant sphere of government, and may take into account—
(a) whether any prevention and mitigation measures were taken and if not the reasons for the absence of such measures;
(b) whether the disaster could have been avoided or minimised had prevention and mitigation measures been taken;
(c) whether it is reasonable to expect that prevention and mitigation measures should have been taken in the circumstances;
(d) whether the damage caused by the disaster is covered by adequate insurance and if not, the reasons for the absence or inadequacy of insurance cover:
(e) the extent of financial assistance available from community public or other non-governmental support programmes: and
(f) the magnitude and severity of the disaster, the financial capacity of the victims of the disaster and their accessibility to commercial insurance.