Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 15 : Financial MisconductPart 1 : Disciplinary proceedings172. Financial misconduct by officials of municipal entities |
| (1) | The accounting officer of a municipal entity 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 municipal entity; |
| (c) | makes or permits, or instructs another official of the municipal entity to make an irregular or fruitless and wasteful expenditure; or |
| (d) | provides incorrect or misleading information in any document which in terms of this Act must be— |
| (i) | submitted to the entity's board of directors or parent municipality or to the Auditor-General; or |
| (ii) | made public. |
| (2) | A senior manager or other official of a municipal entity exercising financial management responsibilities and to whom a power or duty was delegated in terms of section 106, 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 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 municipal entity must— |
| (a) | investigate allegations of financial misconduct against the accounting officer, a senior manager or other official of the entity 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, senior manager or other official in terms of Schedule 3 of the Municipal Systems Act. |