Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 10 : Municipal EntitiesPart 3 : Accounting officers94. Fiduciary duties of accounting officers |
| (1) | The accounting officer of a municipal entity must— |
| (a) | exercise utmost care to ensure reasonable protection of the assets and records of the entity; |
| (b) | act with fidelity, honesty, integrity and in the best interest of the entity in managing the financial affairs of the entity; |
| (c) | disclose to the entity's parent municipality and the entity's board of directors all material facts, including those reasonably discoverable, which in any way may influence the decisions or actions of the parent municipality or the board of directors; and |
| (d) | seek, within the sphere of influence of that accounting officer, to prevent any prejudice to the financial interests of the parent municipality or the municipal entity. |
| (2) | The accounting officer may not— |
| (a) | act in a way that is inconsistent with the responsibilities assigned to accounting officers of municipal entities in terms of this Act; or |
| (b) | use the position or privileges of, or confidential information obtained as accounting officer, for personal gain or to improperly benefit another person. |