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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

145. Implementation of financial recovery plans in discretionary provincial interventions


(1) If the financial recovery plan was prepared in a discretionary provincial intervention referred to in section 137, the municipality must—
(a) implement the approved recovery plan; and
(b) report monthly to the MEC for local government in the province on the implementation of the plan, in such manner as the plan may determine.


(2) The financial recovery plan binds the municipality in the exercise of its executive authority, but only to the extent to resolve the financial problems of the municipality.


(3) If the municipality cannot or does not implement the approved recovery plan, the provincial executive may in terms of section 139(1) or (4) of the Constitution take further appropriate steps to ensure implementation of the plan.


(4) Sections 34(3) and (4) and 35 of the Municipal Structures Act apply if a provincial executive dissolves a municipal council in terms of subsection (3).