ANNEXURE G
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.
[Subs. (2) substituted by s. 5 of the Constitution Seventh Amendment Act of
2001]
(3) A decision to stop the transfer of funds due to a province in terms of section
214(1)(b) 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.
[Subs. (3) amended by s. 5 of the Constitution Seventh Amendment Act of
2001]
(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.
(Commencement date of s. 216: 1 January 1998)
