AUDITOR GENERAL AND NATIONAL AUDIT OFFICE ACT

[ CAP. 396. 1

AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

CHAPTER 396

AUDITOR GENERAL AND NATIONAL AUDIT

OFFICE ACT

To provide for the setting out of the duties of the Auditor General and

the manner whereby reports by the Auditor General are to be made to

Parliament, and to provide for the manner in which funds shall be

allocated to the National Audit Office and the manner whereby accounts of

the National Audit Office are to be audited and reported upon, as well as

other matters ancillary and consequential thereto.

25th July, 1997

Enacted by ACT XVI of 1997 , as amended by Acts XIV of 1999 , X of

2013 and XI of 2021 .

The title of this Act is the Auditor General and National

Audit Office Act.

(Article 5)

Reports of the Auditor General

1. (a) The Auditor General shall make such examination and

inquiries in the accounts of all departments or offices

of the Government of Malta, or of such other bodies on

whose accounts he is to report in accordance with any

law, as he may consider necessary in order to enable

him to report thereon as required by the Constitution or

any other law.

(b) The Auditor General shall at least once in every year

inspect all securities held in Malta and shall verify the

annual return of all securities held in Malta and abroad

prepared by the Accountant General under the

provisions of the Public Finance Management Act.

(c) The Auditor General shall examine with the Treasury

books the statements which the Accountant General is

required to prepare and forward to him under the

Public Finance Management Act; he shall certify and

return them to the Accountant General within two

weeks after the receipt thereof.

(d) If the Auditor General objects to any part of such

statements, he shall certify the same with such remarks

thereon as he thinks fit, and they shall be published

and laid on the Table of the House of Representatives

together with such remarks.

(e) The Auditor General shall examine the statements and

accounts prepared and sent to him by the Accountant

General in terms of the Public Finance Management

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AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

Act and shall make a report as is provided under and is

required by this Act, by the Public Finance

Management Act and any regulations made thereunder,

or as the Auditor General may think fit and desirable.

2. The Auditor General shall examine, in particular, such

books and records as government departments are required to keep

by or under the Public Finance Management Act or any other law

which may from time to time amend, supplement or replace that

Act, and shall in his report state his opinion as to whether such

books and records fairly contain such information as is required in

accordance with stated accounting policies of the Government of

Malta.

3. The Auditor General may examine whether the department,

office or other body whose accounts are being audited by him has

used the funds and resources available to it effectively, efficiently,

and economically without incurring expenditure which is

unnecessary.

4. Nothing in paragraph 3 hereof shall be construed as

entitling the Auditor General to go into the merits of any policy or

objective of any such department, office or body.

5. The Auditor General shall annually report to the House of

Representatives on

(i)

the work and activities of the National Audit

Office; and

(ii) whether in carrying out his work he received all

the information and explanations he required.

6. Each report under paragraph 5 shall call attention to

anything that the Auditor General considers to be of significance

and of a nature that should be brought to the attention of the House

of Representatives, including in particular any cases in which he

may have observed that -

(i)

accounts and records have not been faithfully

and properly maintained or public monies have

not been fully accounted for or paid into the

Consolidated Fund as may be required by law;

(ii) essential records have not been maintained or

the rules and procedures applied have been

insufficient to safeguard and control public

property, to secure an effective check on the

assessment, collection and proper allocation of

revenue and to ensure that expenditures have

been made only as authorised;

(iii) public monies have been expended for purposes

other than those for which they were

appropriated by Parliament or otherwise not in

accordance with the Public Finance Management

Act or such other law amending, supplementing

or replacing that Act;

(iv) public monies have been expended unecono-

CAP. 396.] AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

mically or without due regard to effectiveness

and efficiency;

(v)

satisfactory

procedures

have

not

been

established to measure and report the

effectiveness of expenditure programmes, where

such procedures should reasonably have been

established.

In this Act unless the context otherwise requires -

"Auditor General" and "Deputy Auditor General" mean the

Auditor General and the Deputy Auditor General appointed in

terms of article 108 of the Constitution;

"Constitution" means the Constitution of Malta;

"National Audit Office" means the National Audit Office set up

by article 108 of the Constitution.

(Article 6)

National Audit Office

PART I

Officers of the National Audit Office

1. The Auditor General shall appoint such number and such

classes of officers at the National Audit Office as he may consider

necessary to assist him in the discharge of his functions according

to law.

2. Such officers shall be appointed on such terms and shall

enjoy such remuneration as the Auditor General may determine.

PART II

Powers of Auditor General and of National Audit Office

3. Except as may be expressly provided by any law, the

Auditor General, and all authorised officers of the National Audit

Office, shall be entitled to free access at all reasonable times to

such information from officers and other personnel of government

departments or offices, or of bodies subject to his audit, that may be

required by them for the proper execution of their functions

according to law, and they shall be entitled to receive from such

officers and other personnel such reports and explanations as they

may deem necessary for such purposes.

4. The Auditor General may also cause searches to be made

in, and extracts to be taken from any books, documents or records

existing in any premises of government departments or offices, or

of bodies subject to his audit, without paying any fee therefor

notwithstanding any law or regulations to the contrary.

5. In order to carry out his duties more effectively, the

Auditor General may station a member of his staff in the offices of

any Government department or office, or of any other body subject

to his audit, and such department, office or body shall furnish such

member with the necessary office accommodation.

6. The Auditor General shall require every officer employed

by him who is to examine the accounts of any department, office or

body to comply with any security requirements applicable thereto

and to take any oath of secrecy that may be required by law to be

taken by any person employed with that department, office or body.

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AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

7. (a) In carrying out his functions and responsibilities

according to law, the Auditor General may rely on the

report of the duly appointed auditor of the organisation

being reported upon, and may also commission any

person or group of persons who may in accordance

with any law hold a warrant entitling them to audit the

accounts of public limited liability companies, to audit

the accounts of any department, office or body subject

to his audit.

(b) The provisions of paragraphs 3, 4 and 6 of this

Schedule shall apply in respect of the person or group

of persons commissioned by the Auditor General.

PART III

Finance

8. The expenses of the National Audit Office and the salaries

and allowances of the officers thereof (other than those of the

Auditor General and of the Deputy Auditor General) up to a sum as

may be fixed by the House of Representatives in accordance with

this Part, shall be a charge on the Consolidated Fund without the

need of any further appropriation other than this Part of this

Schedule.

9. For the purposes of establishing the sum referred to in

paragraph 8, the Auditor General shall prepare an estimate of the

sum that he considers to be required.

10. Such estimate shall before consideration by the House of

Representatives be examined by the Committee established under

Part IV of this Schedule.

The Auditor General and the Deputy Auditor General shall

take an oath of Office in the terms following

"I ........................ swear that I shall honestly and diligently

perform the functions of Auditor General/Deputy Auditor General,

according to the Constitution of Malta and to any law that may

from time to time be applicable, without fear or favour and to the

best of my ability.".

The Auditor General may in connection with his functions

under the Constitution or any other law, examine any person on

oath on any matter pertaining to any account subject to his audit

and shall have all the powers that are by virtue of the Inquiries Act

conferred on a chairman of a board of enquiry under that Act, and

the provisions of that Act shall apply to the Auditor General in the

exercise of his functions aforesaid as if he were a chairman

appointed under that Act.

The provisions of the First Schedule to this Act shall apply

to the reports that the Auditor General is to make to Parliament in

accordance with article 108 of the Constitution.

CAP. 396.] AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

If during or after any investigation, the Auditor General is of

the opinion that there is evidence of any corrupt practice as defined in

the Permanent Commission Against Corruption Act, the Auditor

General may refer his findings directly to the Attorney General.

(1) The provisions of the Second Schedule to this Act shall

apply to the recruitment of staff at the National Audit Office, to the

powers of the Auditor General and of his office, the allocation of

funds to the National Audit Office, the keeping of accounts thereat

and for their proper audit.

(2) The National Audit Office Accounts Committee established

under Part IV of the Second Schedule to this Act shall have the

powers and functions as set out in the said Second Schedule as well

as such other powers and functions as may be assigned to it by any

Each report made by the Auditor General under paragraph

5 of this Schedule shall be submitted to the Speaker of the House of

Representatives not later than twelve months after the end of the

financial year being reported upon, and the Speaker shall lay each

such report before the House of Representatives on the next sitting

of the House after receipt thereof by him.

(a) The Auditor General may make special reports to the

House of Representatives

(i)

on any matter of pressing importance or

urgency; or

(ii) dealing with value for money audit relating to

efficiency and effectiveness of any department,

office or body.

(b) The Speaker shall lay each such report before the

House of Representatives on the next sitting of the

House after receipt thereof by him.

(a) The Auditor General may either personally or through

the National Audit Office, on the initiative of the

Auditor General himself or at the request of the

Minister responsible for finance or of at least three

members of the Public Accounts Committee or such

other Committee of the House of Representatives that

may from time to time replace such committee, inquire

into and report on

(i)

any matter relating to government finances,

property or funds administered or under the

control of any Government department or office

or of any body whose accounts are subject to his

audit;

(ii) such accounts and financial reports which are in

virtue of or under any law laid before the House

of Representatives;

(iii) the accounts of those public authorities or bodies

administering, holding or using funds belonging

directly or indirectly to the Government of

Malta;

(iv) the operations of companies or other entities in

which the Government of Malta owns not less

than 51 per cent of the shares;

(v) any other matter as may be provided by or under

any law.

(b) The Speaker shall lay each such report before the

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AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

House of Representatives on the next sitting of the

House after receipt thereof by him.

(c) The Auditor General may give advice to any

Government department or office, or to any body to

which sub-paragraph (a) hereof applies, on anything

discovered during such inquiry.

(a) Any serious irregularity discovered by the Auditor

General in a government department or office, or in a

body subject to his audit, shall be brought to the notice

of the Minister responsible for that government

department, office or body by the Auditor General.

(b)

(i) The Auditor General may report to the Speaker

any person who performs duties in such

government department or office, or body

subject to his audit, and who fails to comply

with any of the provisions of this Act or of the

Public Finance Management Act, or of any

regulations made thereunder.

(ii) The Auditor General shall report any such

person to the Minister responsible for that

Government department, office or body and may

recommend that the Minister surcharges against

that person the amount of deficiency or loss or

improper payment resulting from the non-

compliance of any provisions of this Act, or of

the Public Finance Management Act, or of any

regulations made thereunder.

(iii) Any person aggrieved by the imposition of any

such surcharge shall have a right to contest such

surcharge by action taken against the Minister in

the First Hall of the Civil Court not later than

one month after notice has been given to him of

such surcharge, and such surcharge shall not

become effective before the lapse of one month

or during such time as any such court action is

still pending.

(iv) The Auditor General shall report any such

person who fraudulently applies or fraudulently

causes or permits to be applied public monies to

other than public services, or who is a defaulter

in respect of public monies, to the Minister, who

shall take such steps as he may consider

necessary to have the offender prosecuted

according to law; but nothing herein contained

shall prevent the taking of proceedings against

such person by any person other than the

Minister.

(c) The Auditor General shall make queries and

observations addressed to any accounting officer or

officer in any way concerned with the receipt or

payment of public monies and call for explanations as

CAP. 396.] AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

he may think necessary. Every such query and

observation addressed to any such officers shall be

returned by them to the Auditor General with the

necessary reply without delay. In the event of any

unusual or unexplained delay occurring in obtaining

reply, or an unsatisfactory reply being received, to

inquiries or representations made by him, the Auditor

General shall report the circumstances to the Minister

responsible for the government department or office,

or body subject to his audit, concerned.

Where during the course of any financial year the sum

fixed by the House of Representatives is in the opinion of the

Auditor General insufficient to enable him to efficiently fulfil the

responsibilities of his office, the Auditor General shall prepare

supplementary estimates for consideration by the House of

Representatives after examination by the Committee as aforesaid in

paragraph 10.

The sum or sums referred to in the previous paragraphs of

this Part shall be fixed by resolution of the House of Represen-

tatives after considering the estimates prepared by the Auditor

General and the report thereon by the Committee.

Part IV

National Audit Office Accounts Committee

There shall be a Committee to be styled the National Audit

Office Accounts Committee (hereinafter referred to as "the

Committee") which shall be composed as follows

(i)

the member of the House of Representatives who

is for the time being Chairman of the Public

Accounts Committee of the House of Represen-

tatives or such other committee of the said

House from time to time replacing such

CAP. 396.] AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

Committee;

(ii) the Minister or any another Member of the House

of Representatives responsible for parliamentary

affairs (hereinafter referred to as "the Leader of

the House of Representatives");

(iii) three members of the House of Representatives

appointed by the said House upon a motion by

the Leader of the House of Representatives, as to

two members from among members supporting

the Government and as to the remaining member

from among the members in opposition.

The Committee shall from time to time but not less often

than once a year present to the House of Representatives (through

the Leader of the House of Representatives) a report of its activities

and the report of its examination of any estimates prepared by the

Auditor General.

The Committee shall elect a chairman from among its

members, and may regulate its own proceedings.

Upon the dissolution of the House of Representatives the

Committee shall be deemed to be dissolved until it is next

reconstituted after the House next meets. Where upon the

d i s s o l u t i o n o f t h e Ho u s e of R e p r e s e n t a t i v e s t h e su m t o b e

established for the purposes of paragraph 8 of Part III is not so

established or the House has not after the end of a financial year

established the said sum, the Auditor General shall be entitled to

expend, each month, a sum equivalent to one twelfth of the sum or

sums established for the previous financial year, until the said sum

is so established.

The validity of any proceedings of the Committee shall not

be affected by any vacancy among its members or by any defect in

the appointment or nomination of any of its members.

PART V

Accounts of the National Audit Office

The accounts of the National Audit Office shall be audited

by such person or persons (hereinafter referred to as "auditor")

appointed by the Committee from among such persons who in

accordance with such law as may from time to time be in force hold

a warrant entitling them to audit the accounts of a public limited

liability company.

The remuneration of the auditor shall be fixed by the

Committee and shall be defrayed as part of the expenses of the

National Audit Office.

The auditor shall have with regard to the accounts of the

National Audit Office such powers as are by law vested in the

Auditor General with regard to accounts subject to his audit.

The auditor shall present his report on the audit carried out

by him to the Committee which shall (through the Leader of the

House of Representatives) present the same to the House of

Representatives together with any comment thereon by the said

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AUDITOR GENERAL AND NATIONAL AUDIT OFFICE

Committee or any of its members.