Document SRC-1020
Local Government: Municipal Finance Management Act 56 of 2003, s33 'Contracts having future budgetary implications' (Acts Online)
- Original address
- https://www.acts.co.za/municipal-finance-management-act-2003/33__contracts_having_future_budgetary_implications
- Retrieved
- 29 October 2026
- Archived copy
- An archived copy is held by the project
- Why it matters
- Statutory process for contracts beyond the 3-year budget (Eikestad PPP): 60-day publication, Treasury/department views, council resolution approving the entire contract; s33(3) public scrutiny
Original document
Claims citing this document
- VerifiedEditor-approved The draft legal due diligence annexed to the feasibility study (Mandatum CC, 8 Jul 2024) says that because the PPP contract is projected to run 20 years, the municipality must follow MFMA section 33. Section 33 applies when a contract will impose financial obligations on the municipality beyond the three years covered by its annual budget. At least 60 days before the council meeting that approves the contract, the municipal manager must publish the draft contract and an information statement for public comment and solicit the views and recommendations of National Treasury, the provincial treasury and the national department responsible for local government. Council must then consider these and adopt a resolution approving the entire contract exactly as it is to be executed. Treasury gives views and recommendations under s33; it does not approve the contract. Under s33(3) such contracts must be available in full to Council and may not be withheld from public scrutiny except as PAIA allows. The report's checklist marks the s120(6) Council decision "In process" and s120(7)/s33 compliance, procurement, tariff-policy and rates by-law changes as "Will be done".