Act No. 91 of 1983

Promotion of Local Government Affairs Act, 1983

The repeal of section 17(D).

Municipal Accountants Act, 1988

The repeal of the whole

Act No. 209 of 1993

Local Government Transition Act, 1993

The repeal of section 10G

Act No. 32 of 2000

1. The amendment of section 1 by the insertion after the definition of "municipal entity" of the following definition:

" ‘Municipal Finance Management Act’ means the

Local Government: Municipal Finance Management

Act, 2002;"

2. The substitution for section 9 of the following section:

"[Assignments initiated by the executive to

municipalities generally] Assignment of additional

9. (1) A Cabinet member or Deputy Minister

initiating the assignment of [a]an additional function

or [a] power by way of [national legislation] an Act

of Parliament to municipalities [generally] must,

before the draft legislation providing for the

assignment is introduced in Parliament –

(c) publish the draft legislation in terms of section

(3) The Cabinet member, Deputy Minister

or MEC initiating the national or provincial

legislation referred to in subsections (1) and (2),

must take appropriate steps to ensure sufficient

funding, and capacity building initiatives as

may be needed, for the performance of the

assigned function or power by the

municipalities concerned if –

(4) The Cabinet member, Deputy Minister or

MEC initiating the legislation referred to in

subsections (1) and (2), must request the Financial

and Fiscal Commission to make an assessment of the

financial implications of the legislation.

3. The substitution for section 10 of the following sections:

"Assignment of additional functions and powers to municipalities in terms of legislation or by agreement

by the municipality will be funded.

in terms of section 9 or 10 must take appropriate

municipality or municipalities if –

implications for the municipality."

 

4. The substitution for section 46 of the following section:

"Annual performance reports

46. (1) A municipality must prepare for each

financial year a performance report reflecting –

(a) the performance of the municipality and of each

service provider during that financial year;

(b) a comparison of those performances with

targets of and performances in the previous

financial year;

(c) the development and service delivery priorities

and the performance targets set by the

municipality for the next financial year; and

(d) measures that were taken to improve

performance.

(2) An annual performance report must be

included in the municipality’s annual report

referred to in section 66 of the Municipal Finance

Management Act before the tabling of the annual

report in the municipal council in terms of that

Act.

(3) If the inclusion of a performance report in

an annual report would unduly delay the tabling of

the annual report, the MEC for local government in

the province may in writing allow the municipality

to table the performance report separately from the

annual report after the expiry of the period

mentioned in section 68 (1) of the Municipal

Finance Management Act.

(4) If a municipality has in terms of

subsection (3) been allowed to table its performance

report separately from the annual report, section 68

(3) to (6) of the Municipal Finance Management

Act, read with the necessary changes as the context

may require, applies with respect to the performance

report and the report on the audit performed in

terms of section 45 (b) of this Act."

5. The amendment of section 55 by the substitution for paragraph (c) of subsection (1) of the following paragraph:

"(c) proper and diligence compliance with

[applicable municipal finance management

legislation] the Municipal Finance

Management Act and any regulations made

under that Act."

6. The amendment of section 57 –

(a) by the substitution for paragraph (a) of subsection (2)

of the following paragraph:

"(a) be concluded within a reasonable time after a

person has been appointed as the municipal

manager or as a manager directly accountable

to the municipal manager, and thereafter,

within one month [after] before the beginning

of the financial year of the municipality;"; and

(b) by the insertion after subsection (4) of the following subsection:

"(4A) The provisions of the Municipal Finance Management Act conferring responsibilities on an accounting officer, must be regarded as forming part of the performance agreement of a municipal manager. Compliance with these provisions must be measured against the audit report on the financial statements of the municipality".

7. The repeal of section 58.

8. The amendment of section 74 by the substitution for subsection (1) of the following subsection:

"(1) A municipal council must adopt and

implement a tariff policy on the levying of fees for

municipal services provided by the municipality

itself or by way of service delivery agreements, and

which complies with the provisions of this Act, the

Municipal Finance Management Act, any

regulations made under that Act and [with] any

other applicable legislation."

9. The amendment of section 81 by –

(a) the substitution for subparagraph (v) of paragraph (a)

of subsection (2) of the following subparagraph:

"(v) managing its own accounting, financial

management, budgeting, investment and

borrowing activities within a framework of

transparency, accountability, reporting and

financial control determined by the

municipality, subject to [applicable

municipal finance management

legislation] the Municipal Finance

Management Act and any regulations made

under that Act;"; and

(b) the insertion after paragraph (b) of the subsection (2)

of section 81 of the following paragraph:

10. The amendment of section 83 by the substitution for subsection (1) of the following subsection:

"(1) If a municipality decides to provide a municipal service through a service delivery agreement with a person referred to in section 80 (1) (b), it must select the service provider through selection processes complying with a regulatory framework prescribed in terms of the Municipal Finance Management Act and which –

[(a) are competitive, fair, transparent and cost-

effective;]

(b) allow all prospective service providers to have

equal and simultaneous access to information

relevant to the bidding process;

(c) minimise the possibility of fraud and

corruption;

(d) make the municipality accountable to the

local community about progress with selecting

a service provider, and the reasons for any

decision in this regard; and

(e) takes into account the need to promote the

empowerment of small and emerging

enterprises."

11. The amendment of section 92 by the substitution for paragraph (b) of subsection (1) of the following paragraph:

"(b) must comply with [any legislation applicable

to the financial management of

municipalities and municipal entities] the

Municipal Finance Management Act and any

regulations made under that Act."

12. The amendment of Schedule 1 by –

(a) the insertion in item 11 after paragraph (a) of the

following paragraphs:

(b) the insertion after item 6 of the following item:

"Rates, tariffs and rent payable by councillors

(c) the insertion after item 12 of the following item:

"Duty of municipal manager to report alleged