Public Audit Act, 2004 (Act No. 25 of 2004)Chapter 4: Administration of Auditor-GeneralPart 3: Financial administration45. Irregular or fruitless and wasteful expenditure |
| (1) | Without limiting liability in terms of the common law or other legislation— |
| (a) | the Deputy Auditor-General is liable for an irregular expenditure or a fruitless and wasteful expenditure deliberately or negligently incurred or authorised by the Deputy Auditor-General, subject to subsection (2); and |
| (b) | a staff member who deliberately or negligently incurred or authorised an irregular expenditure or a fruitless and wasteful expenditure is liable for that expenditure. |
| (2) | If the Deputy Auditor-General becomes aware that the Auditor-General has taken a decision which, if implemented, is likely to result in irregular or fruitless and wasteful expenditure, the Deputy Auditor-General is not liable for any ensuing irregular or fruitless and wasteful expenditure provided that the Deputy Auditor-General has informed the Auditor-General, in writing, that the expenditure is likely to be irregular or fruitless and wasteful expenditure. |
| (3) | Any decision of the Auditor-General to proceed with the implementation of the decision in subsection (2), and the reasons for the decision, must be in writing, and the Deputy Auditor-General must promptly notify the external auditor and the oversight mechanism. |
| (4) | The Deputy Auditor-General must promptly inform the Auditor-General, in writing, of— |
| (a) | any irregular or fruitless and wasteful expenditure incurred in the administration of the Auditor-General; |
| (b) | whether any person is responsible or under investigation for such irregular or fruitless and wasteful expenditure; and |
| (c) | the steps that have been taken— |
| (i) | to recover or rectify such expenditure; and |
| (ii) | to prevent a recurrence of such expenditure. |