Chapter 6: Provinces
continued functioning of the municipality.
(5) � If a municipality, as a result of a crisis in its financial affairs, is in serious or persistent
material breach of its obligations to provide basic services or to meet its financial
commitments, or admits that it is unable to meet its obligations or financial
commitments, the relevant provincial executive must—
(a) � impose a recovery plan aimed at securing the municipality’s ability to meet its
obligations to provide basic services or its financial commitments, which—
(i) � is to be prepared in accordance with national legislation; and
(ii) � binds the municipality in the exercise of its legislative and executive
authority, but only to the extent necessary to solve the crisis in its
financial affairs; and
(b) � dissolve the Municipal Council, if the municipality cannot or does not approve
legislative measures, including a budget or any revenue-raising measures,
necessary to give effect to the recovery plan, and—
(i) � appoint an administrator until a newly elected Municipal Council has
been declared elected; and
(ii) � approve a temporary budget or revenue-raising measures or any other
measures giving effect to the recovery plan to provide for the continued
functioning of the municipality; or
(c) � if the Municipal Council is not dissolved in terms of paragraph (b), assume
responsibility for the implementation of the recovery plan to the extent that
the municipality cannot or does not otherwise implement the recovery plan.
(6) � If a provincial executive intervenes in a municipality in terms of subsection (4) or
(5), it must submit a written notice of the intervention to—
(a) � the Cabinet member responsible for local government affairs; and
(b) � the relevant provincial legislature and the National Council of Provinces, within
seven days after the intervention began.
(7) � If a provincial executive cannot or does not or does not adequately exercise the
powers or perform the functions referred to in subsection (4) or (5), the national
executive must intervene in terms of subsection (4) or (5) in the stead of the
relevant provincial executive.
(8) � National legislation may regulate the implementation of this section, including the
processes established by this section.
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