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Public Audit Act, 2004 (Act No. 25 of 2004)

Chapter 4: Administration of Auditor-General

Part 3: Financial administration

45. Irregular or fruitless and wasteful expenditure

 

(1) Without limiting liability in terms of the common law or other legislation—
(a) the Deputy Auditor-General is liable for an irregular expenditure or a fruitless and wasteful expenditure deliberately or negligently incurred or authorised by the Deputy Auditor-General, subject to subsection (2); and
(b) a staff member who deliberately or negligently incurred or authorised an irregular expenditure or a fruitless and wasteful expenditure is liable for that expenditure.

 

(2) If the Deputy Auditor-General becomes aware that the Auditor-General has taken a decision which, if implemented, is likely to result in irregular or fruitless and wasteful expenditure, the Deputy Auditor-General is not liable for any ensuing irregular or fruitless and wasteful expenditure provided that the Deputy Auditor-General has informed the Auditor-General, in writing, that the expenditure is likely to be irregular or fruitless and wasteful expenditure.

 

(3) Any decision of the Auditor-General to proceed with the implementation of the decision in subsection (2), and the reasons for the decision, must be in writing, and the Deputy Auditor-General must promptly notify the external auditor and the oversight mechanism.

 

(4) The Deputy Auditor-General must promptly inform the Auditor-General, in writing, of—
(a) any irregular or fruitless and wasteful expenditure incurred in the administration of the Auditor-General;
(b) whether any person is responsible or under investigation for such irregular or fruitless and wasteful expenditure; and
(c) the steps that have been taken—
(i) to recover or rectify such expenditure; and
(ii) to prevent a recurrence of such expenditure.