Chapter 13: Finance
Treasury control
216.
(1)
(2)
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.
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.
[Sub-s. (2) substituted by s. 5 (a) 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.
[Sub-s. (3) amended by s. 5 (b) 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.
Procurement
217. � (1)
When an organ of state in the national, provincial or local sphere of government,
or any other institution identified in national legislation, contracts for goods
117