Western Australian Numbered Acts

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FINANCIAL MANAGEMENT ACT 2006 (NO. 76 OF 2006) - SECT 49

49 .         Liability of officers for losses

        (1)         For the purposes of this section —

            (a)         a person is taken to have control of official money if —

                  (i)         the money is held by the person by way of an advance; or

                  (ii)         the money has been collected or received by the person but has not been paid to another person, or credited to a bank account, as required under a written law;

                and

            (b)         a person is taken to have control of official property if —

                  (i)         the property has been delivered to the person and has not been further delivered to another person entitled to receive it; and

                  (ii)         the person gave a written undertaking when the property was delivered to take strict care of it while he or she had control of it.

        (2)         Subject to subsection (3), if —

            (a)         a loss of official money or official property occurs; and

            (b)         at the time of the loss an officer has control of the money or property,

                the officer is liable to pay to the relevant authority an amount equal to the loss.

        (3)         The officer is not liable in respect of the loss if the officer shows that he or she took reasonable steps in all the circumstances to prevent the loss.

        (4)         Subject to subsection (5), if —

            (a)         a loss of official money or official property occurs; and

            (b)         an officer caused or contributed to the loss by misconduct or a deliberate or serious disregard of reasonable standards of care,

                the officer is liable to pay to the relevant authority an amount equal to the loss.

        (5)         If the officer’s misconduct or disregard of reasonable standards of care was not the sole cause of the loss, the officer is liable to pay only so much of the loss as is just and equitable with regard to his or her share of the responsibility for the loss.

        (6)         A person who becomes liable under this section in the person’s capacity as an officer does not cease to be liable only because the person ceases to be an officer.



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