| (i) | a province, if a serious or persistent material breach of this Act, as envisaged in section 216(2) of the Constitution, occurs; or |
| (aa) | a serious or persistent material breach of this Act, as envisaged in section 216(2) of the Constitution, read with section 38(1)(b)(i) of the Municipal Finance Management Act, occurs; or |
| (bb) | a breach or failure to comply, as envisaged in section 38(1)(b)(ii) of the Municipal Finance Management Act, occurs; |
| (b) | if the National Treasury anticipates that a province or municipality shall substantially underspend on the allocation, or any programme, partially or fully funded by the allocation, in the 2024/25 financial year; or |
| (c) | for purposes of the assignment of a function from a province to a municipality, as envisaged in section 10 of the Municipal Systems Act. |
| (2) | A request by a transferring officer or a receiving officer to stop the transfer of a Schedule 4 or 5 allocation, or a portion thereof to a province or municipality in terms of section 18(1)(a) or (b) must, in the case of— |
| (a) | a province, be submitted to the National Treasury by 30 December 2024; and |
| (b) | a municipality, be submitted to the National Treasury by 31 January 2025. |
| (3) | The National Treasury must, before stopping an allocation in terms of subsection (1)(a)(i) or (b)— |
| (a) | comply with the procedures in section 17(4)(a), with the necessary changes; and |
| (b) | inform the relevant transferring officer and provincial treasury of its intention to stop the allocation. |
| (4) | The National Treasury must, before stopping an allocation in terms of subsection (1)(a)(ii), comply with the applicable provisions of section 38 of the Municipal Finance Management Act. |
| (5) | The National Treasury must give notice in the Gazette of the stopping of an allocation or a portion thereof in terms of this section, and include in the notice, the effective date of and reason for the stopping. |
| (i) | an allocation, or any portion thereof, is stopped in terms of subsection (1)(a) or (b); and |
| (ii) | the relevant transferring officer certifies, in writing, to the National Treasury that the payment of an amount in terms of a statutory or contractual obligation is overdue and the allocation, or a portion thereof, was intended for payment of the amount, |
the National Treasury may, by notice in the Gazette, approve that the allocation, or any portion thereof, be used to pay that amount partially or fully.
| (b) | The utilisation of funds envisaged in this subsection is a direct charge against the National Revenue Fund. |
