Acts Online
GT Shield

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

Chapter 5 : Co-Operative Government

34. Capacity building


(1) The national and provincial governments must by agreement assist municipalities in building the capacity of municipalities for efficient, effective and transparent financial management.


(2) The national and provincial governments must support the efforts of municipalities to identify and resolve their financial problems


(3) When performing its monitoring function in terms of section 155(6) of the Constitution, a provincial government—
(a) must share with a municipality the results of its monitoring to the extent that those results may assist the municipality in improving its financial management;
(b) must, upon detecting any emerging or impending financial problems in a municipality, alert the municipality to those problems; and
(c) may assist the municipality to avert or resolve financial problems.


(4) Non-compliance with this section or any other provision of this Act by the national or a provincial government does not affect the responsibility of a municipality, its political structures, political office-bearers and officials to comply with this Act.