Statutory Authorities Act 1962

Where the Auditor-General is of opinion that – the financial affairs of an elective authority having the management and control of a public utility or jurisdiction over a defined district or locality are in a seriously unsatisfactory or unsafe condition; or such an authority has – been guilty of grave default, neglect, or mismanagement; or shown gross incompetence – in any matter properly the subject of examination and report by the Auditor-General – he may give that authority a notice to be called for the purposes of this Part a "warning notice".

In a warning notice the Auditor-General shall – state that he intends to make a report to the Governor under this section; set forth the allegations he intends to make in the report; and request the authority to furnish him, within one month of the date of the notice, with a reply to the intended allegations.

After the expiry of the period mentioned in paragraph (c) of subsection (2) of this section, the Auditor-General may make a report to the Governor setting forth – the allegations set forth in the warning notice; that the warning notice was duly given; and the authority's reply to the warning notice or that no reply has been furnished, as the case may be.

If the authority has furnished a reply to the warning notice and the Governor does not consider it satisfactory, the Minister administering the Act under which the authority is constituted shall notify the authority accordingly unless it has in its reply requested a review of the report.