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Division of Revenue Act, 2016 (Act No. 3 of 2016)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 3 : Matters relating to Schedule 4 to 7 allocations

21. Conversion of allocations

 

(1) If satisfied that—
(a) the conversion will prevent under-expenditure or improve the level of service delivery in respect of the allocation in question; and
(b) the affected national or provincial department or municipality has demonstrated the capacity to implement projects,

the National Treasury may, in its discretion after consultation with the relevant transferring officer and receiving officer or at the request of the transferring officer or the affected receiving officer, convert any portion of—

(i) an allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6;
(ii) an allocation listed in Part B of Schedule 6 to one listed in Part B of Schedule 5;
(iv) the National Health Insurance Indirect Grant listed in Part A of Schedule 6 to the Health Facility Revitalisation Grant or the National Health Insurance Grant listed in Part A of Schedule 5.

 

(2) If satisfied that a municipality has failed to follow procurement procedures prescribed in terms of the Municipal Finance Management Act, the National Treasury may, in its discretion after consultation with the relevant transferring officer or at the request of the transferring officer or the affected receiving officer, convert any portion of an allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6.

 

(3) Any portion of an allocation converted in terms of subsections (1) or (2) must be utilised for the same province or municipality to which the allocation was originally made.

 

(4) The National Treasury must—
(a) give notice in the Gazette of a conversion in terms of subsection (1) or (2); and
(b) provide a copy of the notice to the transferring officer and each affected receiving officer.

 

(5) A conversion in terms of subsection (1) or (2) takes effect on the date of publication of the notice in terms of subsection (4)(a).

 

(6) If an allocation listed in Part B of Schedule 7 is insufficient for a disaster referred to in section 26(3)(a), the National Treasury may, after consultation with or on the request of the relevant transferring officer, convert any portion of an allocation listed in—
(a) Part A of Schedule 7 to one listed in Part B of Schedule 7; or
(b) Part B of Schedule 7 to one listed in Part A of Schedule 7.

 

(7) The National Treasury must—
(a) in the notice published in terms of section 26(3)(c), include notification of the conversion in terms of subsection (6) and the effective date referred to in subsection (8); or
(b) provide a copy of the notice to the transferring officer.

 

(8) A conversion in terms of subsection (6) takes effect on the date that the National Treasury approves it.