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

Chapter 13 : Resolution of Financial Problems

Part 2 : Provincial interventions

137. Discretionary provincial interventions


(1) If the conditions for a provincial intervention in a municipality in terms of section 139(1) of the Constitution are met and the provincial executive decides in terms of section 136(2) of this Act to intervene in the municipality, the provincial executive may take any appropriate steps referred to in section 139(1) of the Constitution, including—
(a) assessing the seriousness of the financial problem in the municipality;
(b) seeking solutions to resolve the financial problem in a way that would be sustainable and would build the municipality’s capacity to manage its own financial affairs;
(c) determining whether the financial problem, singly or in combination with other problems, is sufficiently serious or sustained that the municipality would benefit from a financial recovery plan and, if so, requesting any suitably qualified person—
(i) to prepare an appropriate financial recovery plan for the municipality;
(ii) to recommend appropriate changes to the municipality’s budget and revenue-raising measures that will give effect to the recovery plan; and
(iii) to submit the recovery plan and any recommendations referred to in subparagraphs (i) and (ii) to the MEC for local government in the province within a period determined by the MEC; and
(d) consulting the mayor of the municipality to obtain the municipality’s co-operation in resolving the financial problem, and if applicable, implementing the financial recovery plan.


(2) The MEC must submit any assessment in term of subsection (1) (a), any determination in terms of subsection (1)(c) and a copy of any request in terms of subsection (1)(c), to the municipality and the Cabinet member responsible for local government.


(3) This section does not apply to a provincial intervention which is unrelated to a financial problem in a municipality.