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Public Finance Management Act, 1999 (Act No. 1 of 1999)

Regulations

Treasury Regulations for Departments, Constitutional Institutions and Public Entities

Part 2: Management Arrangements

4. Financial misconduct

 

4.1 Investigation of alleged financial misconduct [Section 85(1)(b), (c) and (d) of the PFMA]

 

4.1.1 If an official is alleged to have committed financial misconduct, the accounting officer of the institution must ensure that an investigation is conducted into the matter and if confirmed, must ensure that a disciplinary hearing is held in accordance with the relevant prescripts and agreements applicable in the public service.

 

4.1.2 The accounting officer must ensure that such an investigation is instituted within 30 days from the date of discovery of the alleged financial misconduct.

 

4.1.3 If an accounting officer is alleged to have committed financial misconduct, the relevant treasury, as soon as it becomes aware of the alleged misconduct, must ensure that the relevant executive authority initiates an investigation into the matter and if the allegations are confirmed, holds a disciplinary hearing in accordance with the prescripts and agreements applicable in the public service.

 

4.1.4 A relevant treasury may –
(a) direct that an official other than an employee of the institution conducts the investigation; or
(b) issue any reasonable requirement regarding the way in which the investigation should be performed.

 

4.2 Criminal proceedings [Section 86 of the PFMA]

 

4.2.1 The accounting officer must advise the executive authority, relevant treasury and the Auditor-General of any criminal charges it has laid against any person in terms of section 86 of the Act of the Act.

 

4.2.2 The relevant treasury may direct an institution to lay charges of criminal financial misconduct against any person should an accounting officer fail to take appropriate action.

 

4.3 Reporting [Section 85(1 )(a) and (e) of the PFMA]

 

4.3.1 The accounting officer of a department must, as soon as the disciplinary proceedings are completed, report to the executive authority, the Department of Public Service and Administration and the Public Service Commission on the outcome, including—
(a) the name and rank of the official against whom proceedings are instituted;
(b) the charges, indicating the financial misconduct the official is alleged to have committed;
(c) the findings;
(d) any sanction imposed on the official; and
(e) any further action to be taken against the official, including criminal charges or civil proceedings.

 

4.3.2 The accounting officer of a constitutional institution must report the information required in terms of paragraph 4.3.1 (a) to (e) of these regulations to Parliament.

 

4.3.3 The accounting officer of a department must inform the executive authority, the relevant treasury, the Department of Public Service and Administration and the Public Service Commission of the outcome of any criminal proceedings instituted against any person for financial misconduct in terms of section 86 of the Act, whilst the accounting officer of a constitutional institution must inform Parliament of such outcomes.

 

4.3.4 The accounting officer of an institution must, on an annual basis, submit to the provincial treasury (if applicable), the National Treasury and the Auditor-General a schedule of—
(a) the outcome of any disciplinary proceedings and/or criminal charges;
(b) the names and ranks of officials involved; and
(c) the sanctions and any further actions taken against these officials.

 

4.3.5 The schedule mentioned in paragraph 4.3.4 must be accompanied by a report which refers to any changes made to the institution’s systems of financial and risk management as a result of any investigation.