Intellectual Property Rights from Publicly Financed Research and
R 385
Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 15 : Financial MisconductPart 1 : Disciplinary proceedings171. Financial misconduct by municipal officials |
| (1) | The accounting officer of a municipality 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 municipality; |
| (c) | makes or permits, or instructs another official of the municipality to make, an unauthorised, irregular or fruitless and wasteful expenditure; or |
| (d) | provides incorrect or misleading information in any document which in terms of a requirement of this Act must be— |
| (i) | submitted to the mayor or the council of the municipality, or to the Auditor-General, the National Treasury or other organ of state; or |
| (ii) | made public. |
| (2) | The chief financial officer of a municipality commits an act of financial misconduct if that officer deliberately or negligently— |
| (a) | fails to carry out a duty delegated to that officer in terms of section 79 or 81(1)(e); |
| (b) | contravenes or fails to comply with a condition of any delegation of a power or duty in terms of section 79 or 81(1)(e); |
| (c) | makes or permits, or instructs another official of the municipality to make, an unauthorised, 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 senior manager or other official of a municipality exercising financial management responsibilities and to whom a power or duty was delegated in terms of section 79, 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 unauthorised, 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). |
| (4) | A municipality must— |
| (a) | investigate allegations of financial misconduct against the accounting officer, the chief financial officer, a senior manager or other official of the municipality 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, chief financial officer or that senior manager or other official in accordance with systems and procedures referred to in section 67 of the Municipal Systems Act, read with Schedule 2 of that Act. |
