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

Chapter 14 : General Treasury Matters

168.Treasury regulations and guidelines


(1) The Minister, acting with the concurrence of the Cabinet member responsible for local government, may make regulations or guidelines applicable to municipalities and municipal entities, regarding—
(a) any matter that may be prescribed in terms of this Act;
(b) financial management and internal control;
(c) a framework for regulating the exercise of municipal fiscal and tariff-fixing powers;
(d) a framework regulating the financial commitments of municipalities and municipal entities in terms of public-private partnership agreements;
(e) the establishment by municipalities of, and control over—
(i) municipal entities; and
(ii) business units contemplated in section 76(a)(ii) of the Municipal Systems Act;
(f) the safe-guarding of the financial affairs of municipalities and of municipal entities when assets, liabilities or staff are transferred from or to a municipality or a municipal entity;
(g) the alienation, letting or disposal of assets by municipalities or municipal entities;
(h) internal audit units and their functioning;
(i) the information to be disclosed when municipalities or municipal entities issue or incur debt and the manner in which such information must be disclosed, including by way of a prospectus or other document;
(j) the circumstances under which further or specific disclosures are required after money has been borrowed by a municipality or municipal entity;
(k) the circumstances under which documentation or information pertaining to municipal debt must be lodged or registered;
(l) the establishment of a registry for the registration of documentation and information pertaining to municipal borrowing;
(m) the settlement of claims against a municipality following an order of court in terms of section 153;
(n) the information that must be placed on the websites of municipalities;
(o) a framework regulating investments by municipal entities; and
(p) any other matter that may facilitate the enforcement and administration of this Act.


(2) A regulation or guideline in terms of this section may—
(a) differentiate between different—
(i) kinds of municipalities, which may, for the purposes of this section, be defined either in relation to categories, types or budgetary size of municipalities or in any other manner;
(ii) categories of municipal entities;
(iii) categories of accounting officers; or
(iv) categories of officials; or
(b) be limited in its application to a particular—
(i) kind of municipality, which may, for the purposes of this section, be defined either in relation to a category, type or budgetary size of municipality or in any other manner;
(ii) category of municipal entities;
(iii) category of accounting officers; or
(iv) category of officials.


(3) No guidelines issued in terms of subsection (1) are binding on—
(a) a municipality unless adopted by its council; or
(b) a municipal entity unless adopted by the council of the entity’s parent municipality.