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Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)

Chapter 13 : Finance

General Financial Matters

216. Treasury control

 

(1) National legislation must establish a national treasury and prescribe measures to ensure both transparency and expenditure control in each sphere of government, by introducing—
(a) generally recognised accounting practice;
(b) uniform expenditure classifications; and
(c) uniform treasury norms and standards.

 

(2) The national treasury must enforce compliance with the measures established in terms of subsection (1), and may stop the transfer of funds to an organ of state if that organ of state commits a serious or persistent material breach of those measures

 

(3) A decision to stop the transfer of funds to a province may be taken only in the circumstances mentioned in subsection (2), and
(a) may not stop the transfer of funds for more than 120 days; and
(b) may be enforced immediately, but will lapse retrospectively unless Parliament approves it following a process substantially the same as that established in terms of section 76(1) and prescribed by the joint rules and orders of Parliament. This process must be completed within 30 days of the decision by the national treasury.

 

(4) Parliament may renew a decision to stop the transfer of funds for no more than 120 days at a time, following the process established in terms of subsection (3).

 

(5) Before Parliament may approve or renew a decision to stop the transfer of funds to a province—
(a) the Auditor-General must report to Parliament; and
(b) the province must be given an opportunity to answer the allegations against it, and to state its case, before a committee.

 

 


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