Unauthorized, Irregular, Fruitless and Wasteful Expenditure Guidelines

In terms of section 62 of the Municipal Finance Management Act No. 56 of 2003 (herein referred to as “the Act”), the accounting officer is responsible for managing the financial affairs of the municipality and he/she must, for this purpose, inter alia:

• take all reasonable steps to ensure that:
  • unauthorized; and
  • irregular; and
  • fruitless and wasteful expenditure; and
  • other losses are prevented; and
• ensure that disciplinary or, when appropriate, criminal proceedings are instituted against any official of the municipality who has allegedly committed an act of financial misconduct or an offence in terms of Chapter 15 of the Act.

This policy guidelines aimed at providing the accounting officer with an overview of legislation pertaining to unauthorized, irregular, fruitless and wasteful expenditure and the recovery of same where applicable.