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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 15 : Financial Misconduct

Part 1 : Disciplinary proceedings

172. Financial misconduct by officials of municipal entities

 

(1) The accounting officer of a municipal entity commits an act of financial misconduct if that accounting officer deliberately or negligently—
(a) contravenes a provision of this Act;
(b) fails to comply with a duty imposed by a provision of this Act on the accounting officer of a municipal entity;
(c) makes or permits, or instructs another official of the municipal entity to make an irregular or fruitless and wasteful expenditure; or
(d) provides incorrect or misleading information in any document which in terms of this Act must be—
(i) submitted to the entity's board of directors or parent municipality or to the Auditor-General; or
(ii) made public.

 

(2) A senior manager or other official of a municipal entity exercising financial management responsibilities and to whom a power or duty was delegated in terms of section 106, commits an act of financial misconduct if that senior manager or official deliberately or negligently—
(a) fails to carry out the delegated duty;
(b) contravenes or fails to comply with a condition of the delegated power or duty;
(c) makes an irregular or fruitless and wasteful expenditure; or
(d) provides incorrect or misleading information to the accounting officer for the purposes of a document referred to in subsection (1)(d).

 

(3) A municipal entity must—
(a) investigate allegations of financial misconduct against the accounting officer, a senior manager or other official of the entity unless those allegations are frivolous, vexatious, speculative or obviously unfounded; and
(b) if the investigation warrants such a step, institute disciplinary proceedings against the accounting officer, senior manager or other official in terms of Schedule 3 of the Municipal Systems Act.