Section 16: Principles of financial management
consolidated text (as at 2014, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
16. Principles of financial management
(1) The Authority shall conduct its business on sound commercial principles with the objective of achieving sufficient return on investment to enable
it to provide a sustained efficient service at minimum costs.
(2) The Authority shall ensure that its revenues are sufficient to produce
on the fair value of its assets a reasonable rate of return measured by taking
its net operating income as a percentage of the fair value of its net fixed assets in operation.
(3) The net surplus of the Authority shall be applied for the creation of a
general reserve, specific reserves or the payment of dividends as the Authority may think fit and as the financial situation of the Authority will permit.
(4) The Authority—
(a) shall in every year cause to be prepared, and shall adopt, annual
estimates of its income and expenditure for the ensuing year; and
(b) may adopt supplementary estimates at any time.
[S. 16 amended by s. 14 of Act 28 of 2004 w.e.f. 26 August 2004.]