Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 10 : Municipal EntitiesPart 4 : Reports and reportable matters102. Irregular or fruitless and wasteful expenditure |
(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. |