A parent municipality which has sole control of a municipal entity, or effective control in the case of a municipal entity which is a private company—
| (a) | must ensure that annual performance objectives and indicators for the municipal entity are established by agreement with the municipal entity and included in the municipal entity's multi-year business plan in accordance with section 81(5)(d) of the Municipal Finance Management Act; |
| (b) | must monitor and annually review, as part of the municipal entity's annual budget process as set out in section 87 of the Municipal Finance Management Act, the performance of the municipal entity against the agreed performance objectives and indicators; and |
| (c) | may liquidate and disestablish the municipal entity - |
| (i) | following an annual performance review, if the performance of the municipal entity is unsatisfactory; |
| (ii) | if the municipality does not impose a financial recovery plan in terms of the Municipal Finance Management Act and the municipal entity continues to experience serious or persistent financial problems; or |
[Section 93B inserted by section 26 of Act No. 44 of 2003]
