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

Chapter 10 : Municipal Entities

Part 4 : Reports and reportable matters

102. Irregular or fruitless and wasteful expenditure

Purchase cart Previous page Return to chapter overview Next page

 

(1)On discovery of any irregular expenditure or any fruitless and wasteful expenditure, the board of directors of a municipal entity must promptly report, in writing, to the mayor and municipal manager of the entity‘s parent municipality and the Auditor-General
(a)particulars of the expenditure; and
(b)any steps that have been taken—
(i)to recover the expenditure; and
(ii)to prevent a recurrence of the expenditure.

 

(2)The board of directors of a municipal entity must promptly report to the South African Police Service any—
(a)irregular expenditure that may constitute a criminal offence; and
(b)other losses suffered by the municipal entity which resulted from suspected criminal conduct.