FINANCIAL MANAGEMENT ACT 2006 - SECT 51

FINANCIAL MANAGEMENT ACT 2006 - SECT 51

51 .         Official losses, investigating

        (1)         In this section —

        authorised person means a person authorised by a responsible person under subsection (2);

        official loss means a loss of official money or official property;

        responsible person means the Under Treasurer or the relevant accountable authority.

        (2)         If a responsible person considers that an official loss may have occurred in circumstances that make an officer liable under section 49 to pay an amount to the relevant authority, the responsible person may direct an investigation to be held by a person authorised in writing by the responsible person.

        (3)         For the purposes of the investigation, the authorised person has all the powers conferred on a special inquirer by the Public Sector Management Act 1994 sections 24I and 24J and Schedule 3, and those provisions apply to and in relation to —

            (a)         the authorised person as if he or she were a special inquirer under that Act; and

            (b)         the investigation as if it were a special inquiry under that Act.

        (4)         Within the period specified by the responsible person, the authorised person is to —

            (a)         complete the investigation; and

            (b)         prepare a report setting out the relevant facts and findings; and

            (c)         send the report to the responsible person.

        (5)         Without limiting subsection (4) and subject to any requirements prescribed by the regulations relating to the rules of natural justice (including any duty of procedural fairness), the report may include a recommendation that the officer be held liable under section 49 to pay a specified amount to the relevant authority.

        (6)         After considering the report and anything else prescribed by the regulations, and having regard to all the circumstances of the case, the responsible person is to determine —

            (a)         that the official loss occurred in circumstances that make the officer liable under section 49 and the amount the officer is liable to pay to the relevant authority; or

            (b)         that no further action is to be taken in relation to the matter.

        (7)         The responsible person is to give written notice of the determination to the officer.

        (8)         In determining the amount that an officer is liable to pay under subsection (6)(a), the responsible person —

            (a)         may have regard to mitigating facts or circumstances relevant to the official loss or to the officer; and

            (b)         may determine that the officer is liable to pay only so much as is just and equitable of the amount that, apart from this subsection, the officer would be liable to pay.

        [Section 51 amended: No. 39 of 2010 s. 76.]

        [Heading inserted: No. 12 of 2021 s. 13.]