Box 1: Treasury Regulations 2001
12.2 Claims against the state through acts or omissions [Section 76(1)(h) of the PFMA]
12.2.1 An institution must accept liability for any loss or damage suffered by another person, as for a claim against the state, which arose from an act or omission of an official, provided –
(a) the act or omission was the cause of the loss, damage or reason for the claim;
(b) the act or omission did not involve the use of alcohol or drugs;
(c) the official acted in the course of his or her employment and was not reckless, wilful or malicious;
(d) the official did not fail to comply with or ignore standing instructions, of which he or she was aware of or could reasonably have been aware of, which led to the loss, damage or reason for the claim, excluding damage arising from the use of a state vehicle; and
(e) in the case of a loss, damage or claim arising from the use of a state vehicle, the official –
(i) used the vehicle with authorisation for official purposes;
(ii) possesses a valid driver’s licence or other appropriate licence;
(iii) used the vehicle in the interest of the state;
(iv) did not allow unauthorised persons to handle the vehicle;
(v) did not deviate materially from the official journey or route without prior authorisation; and
(vi) did not, without prior consultation with the State Attorney, make an admission that was detrimental to the state.
12.2.2 If in doubt, the accounting officer of the institution must consult the State Attorney on questions of law on the implementation of paragraph 12.2.1.
12.2.3 Except when an institution has accepted liability in terms of paragraph 12.2.1, an amount paid by the institution for losses, damages or claims arising from an act or omission of an official must be recovered from the official concerned if the official is liable in law to compensate the institution.
12.2.4 The State Attorney may only obligate the funds of an institution with the prior written approval of the accounting officer. Read more