  AUDITOR GENERAL AND NATIONAL AUDIT OFFICE  ġ CAP. 396.  1
CHAPTER 396
NATIONAL AUDIT 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 Act XIV of 1999.
Short title. 
Audit Office Act.
Interpretation.  
"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.
Oath of Office.
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.".
Power of the 
Auditor General to 
administer oaths, 
etc.
Cap. 273.
4. 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.
Manner in which 
the Auditor 
General shall 
report to 
Parliament.
5. 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. 
Allocation of 
funds, etc., to 
National Audit 
Office.
Amended by:
XIV. 1999.4.
6. (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  CAP. 396. ħ   AUDITOR GENERAL AND NATIONAL AUDIT OFFICE 
(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
other law.
FIRST SCHEDULE
(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.
Cap. 174.
( 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 Financial Administration and Audit
Act.
Cap. 174.
( 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
Financial Administration and Audit 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.
Cap. 174.
( e ) The Auditor General shall examine the statements and
accounts prepared and sent to him by the Accountant
General in terms of the Financial Administration and
Audit Act and shall make a report as is provided under
and is required by this Act, by the Financial
Administration and Audit Act and any regulations
made thereunder, or as the Auditor General may think
fit and desirable.
Cap. 174.
2. The Auditor General shall examine, in particular, such
books and records as government departments are required to keep
by or under the Financial Administration and Audit 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
  AUDITOR GENERAL AND NATIONAL AUDIT OFFICE  ġ CAP. 396.  3
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;
Cap. 174.
(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 Financial Administration
and Audit Act or such other law amending,
supplementing or replacing that Act;
(iv) public monies have been expended unecono-
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.
7. 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
  4  CAP. 396. ħ   AUDITOR GENERAL AND NATIONAL AUDIT OFFICE 
such report before the House of Representatives on the next sitting
of the House after receipt thereof by him.
8. ( 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.
9. ( 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
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.
10. ( 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.
  AUDITOR GENERAL AND NATIONAL AUDIT OFFICE  ġ CAP. 396.  5
Cap. 174.
( 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
Financial Administration and Audit Act, or of
any regulations made thereunder.
Cap. 174.
(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 Financial Administration and Audit 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
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.
  6  CAP. 396. ħ   AUDITOR GENERAL AND NATIONAL AUDIT OFFICE 
SECOND SCHEDULE
(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.
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
  AUDITOR GENERAL AND NATIONAL AUDIT OFFICE  ġ CAP. 396.  7
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.
11. 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.
12. 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
13. 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
Committee;
(ii) the Minister 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.
  8  CAP. 396. ħ   AUDITOR GENERAL AND NATIONAL AUDIT OFFICE 
14. 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.
15. The Committee shall elect a chairman from among its
members, and may regulate its own proceedings.
16. 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
dissolution of the House of Representatives the sum to be
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.
17. 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
18. 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.
19. 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.
20. 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.
21. 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
Committee or any of its members.
