STATUTORY RULES.
1943. No. 86.
REGULATION UNDER THE NATIONAL SECURITY ACT 1939-1940.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the National Security Act 1939-1940.
Dated this first day of April, 1943.
(SGD.) GOWRIE.
Governor-General.
By His Excellency’s Command,
(SGD.) H. V. EVATT
for and on behalf of the Minister of State for Defence.
Amendment of the National Security (Supplementary) Regulations.†
The National Security (Supplementary) Regulations are amended by adding at the end thereof the following regulation:—
Recovery from contractors of charges or expenditure improperly incurred.
“94—(1) A Commonwealth officer, or a contractor with the Commonwealth or with an authority of the Commonwealth, shall not—
(a) convert to his own use any property belonging to the Commonwealth or to any such authority, or
(b) incur any charge or expenditure against the Commonwealth which is not duly authorized by the terms of his employment as a Commonwealth officer or under his contract with the Commonwealth or with an authority of the Commonwealth.
“(2.) The Attorney General or any person authorized in that behalf by the Attorney-General may take such measures or proceedings as he thinks fit to recover the value of any such property or the amount of any such charge or expenditure (whether the property was converted, or the charge or expenditure was incurred, before or after the commencement of this regulation) and, without prejudice to any other measures of recovery, may sue for and recover the value of the property or the amount of the charge or expenditure in any court of competent jurisdiction.
“(3.) For the purposes of this regulation, ‘contractor’ includes any person sub-contracting with, or employed by, any contractor with the Commonwealth or with any authority of the Commonwealth.”.
* Notified in the Commonwealth Gazette on , 1943.
† Statutory Rules 1940, No. 126, as amended to date. For previous National Security (Supplementary) Regulations, see note “†” to Statutory Rules 1942, No. 515, and see also Statutory Rules 1942, Nos. 495, 500, 501, 515, 517, 524 and 536.
By Authority: L. F. JOHNSTON, Commonwealth Government Printer, Canberra.
8696.—PRICE 3d. 15/11.1.1943.
Overview
Statutory Rules 1943 No. 86, made under the National Security Act 1939-1940, was enacted to address the misuse of Commonwealth property and unauthorised charges or expenditures by Commonwealth officers or contractors. The regulation was introduced to ensure accountability and proper use of public resources during a time of national security concern, namely, World War II. Enacted by the Governor-General in Council, this regulation provides a means for the recovery of any property converted or any charges or expenditures incurred improperly by Commonwealth officers or contractors. It empowers the Attorney General or authorised individuals to take necessary actions and legal proceedings to reclaim any such assets or amounts, thereby reinforcing the integrity and efficiency of public resource management during critical periods.
Scope and Application
The regulation issued under the National Security Act 1939-1940 pertains to the recovery of charges or expenditure improperly incurred by Commonwealth officers or contractors engaged with the Commonwealth or any Commonwealth authority. This regulation applies to any individual or entity that holds a contractual relationship with the Commonwealth or any Commonwealth authority, encompassing both direct contractors and sub-contractors. Its jurisdictional reach is limited to the Commonwealth, making it applicable throughout Australia as a national framework. The regulation does not specify any exclusions or exemptions and applies to both current and past improper conversions of property or unauthorised charges and expenditures. The Attorney General, or an authorised person, is empowered to take legal action to recover the value of any misappropriated property or unauthorised charges or expenditures. This regulatory measure underscores the stringent measures taken to safeguard national security by ensuring accountability for financial improprieties within the scope of Commonwealth contracts.
Key Provisions
The regulation, which amends the National Security (Supplementary) Regulations, introduces a new provision (regulation 94) prohibiting Commonwealth officers and contractors from using Commonwealth property for personal use or incurring unauthorised charges or expenditures (subsection 94(1)). This includes any person employed by or sub-contracting with such contractors. The regulation explicitly states that any conversion of Commonwealth property to personal use or any unauthorised charge or expenditure is strictly forbidden, regardless of whether it occurred before or after the regulation's commencement (subsection 94(2)). To enforce these provisions, the Attorney-General, or an authorised person, is empowered to take necessary measures or legal proceedings to recover the value of any improperly converted property or unauthorised charges and expenditures. This can include suing in a competent court to recover the value of the property or the amount of the charge or expenditure (subsection 94(2)).
The Act imposes specific obligations on Commonwealth officers and contractors, requiring them to ensure that they do not utilise Commonwealth property for personal purposes and that all charges and expenditures are authorised by their employment terms or contracts. This includes any sub-contractors or employees of the primary contractor. The regulation seeks to maintain the integrity and proper use of Commonwealth resources by preventing misuse and unauthorised financial transactions. Failure to adhere to these obligations can result in legal action to recover any losses incurred by the Commonwealth.
Breach of this regulation can lead to both civil and criminal consequences. The Attorney-General, or an authorised person, can initiate legal action to recover any value lost due to property conversion or unauthorised charges and expenditures. Civil penalties may include monetary compensation for the full value of the property or charges incurred. Additionally, individuals found guilty of violating these provisions may face criminal charges, with potential penalties as prescribed by law. While the specific maximum penalties are not detailed in the regulation, breaches can result in significant legal repercussions for those found in violation.