Public Officers Guarantee Regulations (C.R.C., c. 723)

Short Title

1 These Regulations may be cited as the Public Officers Guarantee Regulations.

Interpretation

2 In these Regulations,

Account

Account means the Public Officers Guarantee Account; (Compte)

Act

Act means the Financial Administration Act; (Loi)

appropriate Minister

appropriate Minister means, with respect to a department or a Crown corporation, the appropriate Minister as defined in the Act, and, with respect to a division or branch of the Public Service designated by the Treasury Board as a department for the purposes of these Regulations, the Minister designated by the Treasury Board; (ministre compétent)

Crown corporation

Crown corporation means a Crown corporation, as defined in the Act, that is designated by the Treasury Board for the purposes of these Regulations; (corporation de la Couronne)

defalcation

defalcation includes any fraudulent act or omission of a public officer that occasions loss in money or property to

• (a) Her Majesty, or

• (b) persons other than Her Majesty, when such money or property was in the custody of the public officer in the course of his official duties,

whether such loss is recovered or not; (détournement de fonds)

department

department means a department, as defined in the Act, and any other division or branch of the Public service designated by the Treasury Board as a department for the purposes of these Regulations; (ministère)

public officer

public officer means any person employed in the service of a department or a Crown corporation to which these Regulations apply and includes any person who collects or receives public money or is charged with the custody or management of property on behalf of such department or Crown corporation. (fonctionnaire public)

Account

• 3 (1) There is hereby established an account in the Consolidated Revenue Fund to be known as the Public Officers Guarantee Account.

• (2) The Account shall be credited with

  • (a) the balance of the Government Officers Guarantee Fund;

  • (b) premiums received from departments and Crown corporations as hereinafter provided;

  • (c) amounts recovered by Her Majesty in respect of payments out of the Account or the Government Officers Guarantee Fund; and

  • (d) moneys appropriated by Parliament for the purposes of the Account.

• (3) The Account shall be charged with payments in respect of defalcations of public officers as hereinafter provided.

• (4) The Account shall be administered by the Minister of Finance.

Defalcations

4 Whenever a public officer has reason to believe that there has been a defalcation, he shall forthwith notify the appropriate Minister who shall forthwith,

• (a) in consultation with the Deputy Minister of Justice, take such steps as may be necessary to recover the amount of the defalcation; and

• (b) submit to the Treasury Board such information as is known to him in respect of such defalcation.

5 [Revoked, SOR/81-785, s. 1]

• 6 (1) Every payment made out of the Account is subject to the prior approval of the Treasury Board and to such terms and conditions as the Treasury Board may prescribe.

• (2) Every application to the Treasury Board for the approval of a payment out of the Account shall be made in writing by the appropriate Minister and shall include the following statements:

  • (a) the account or the name of the person that has suffered loss;

  • (b) the name and position of the public officer by reason of whose defalcation the loss was suffered;

  • (c) the amount of the loss;

  • (d) the measures taken to effect recovery, the amount recovered, if any, and the probability of further recovery;

  • (e) whether prosecution has been undertaken and, if so, the results of the prosecution;

  • (f) other action taken to punish or discipline the public officer by reason of whose defalcation the loss was suffered;

  • (g) the safeguards adopted to prevent further defalcations under similar circumstances; and

  • (h) the legal and other costs incurred in connection with the measures taken to effect recovery.

• (3) An appropriation or revenue or other account that has suffered loss by reason of a defalcation shall, whenever possible, be reimbursed before the close of the fiscal year in which the loss was suffered, and for the purpose of approving payment before the close of the year, the Treasury Board may waive the requirements of subsection (2) but, in such case, the appropriate Minister shall

  • (a) submit any statements required by subsection (2) that are not available at the time of application as soon as possible after payment; and

  • (b) submit a report on the case containing such information and in such detail as the Treasury Board may require within three months after payment, and quarterly thereafter, until all the statements required by subsection (2) have been submitted.

• (4) The amount of every loss suffered by Her Majesty by reason of a defalcation and the amount of every payment from the Account shall be recovered unless the Deputy Minister of Justice expresses the opinion that no action or no further action is warranted, in which case, the appropriate Minister shall take whatever steps are necessary to have the amount of the loss deleted from the accounts.

• (5) Unless the Treasury Board otherwise directs, the legal expenses and other costs incurred in connection with any measures taken to effect recovery of any loss shall be borne by the department or Crown corporation concerned.

Application

• 7 (1) These Regulations apply to the departments to which the Act applies, except

  • (a) the Post Office Department; and

  • (b) annuity representatives, Department of employment and Immigration.

• (2) These Regulations apply to the Crown corporations listed in Schedules C and D to the Act, except

  • (a) Canadian National Railways;

  • (b) Canadian National (West Indies) Steamships, Limited;

  • (c) Central Mortgage and Housing Corporation;

  • (d) Air Canada; and

  • (e) Canadian Broadcasting Corporation.

• (3) For the purposes of these Regulations, the Office of the Custodian of Enemy Property is designated as a department, and the Secretary of State is designated as the appropriate Minister in respect thereof.

General

• 8 (1) The Minister of Finance shall review annually the state of the Account and shall recommend to the Treasury Board such measures as in his opinion are required to ensure that the Account is sufficient to meet the charges that may be made against it.

• (2) A department or Crown Corporation to which these Regulations apply shall, whenever required by the Treasury Board, make such payments to the Account by way of premiums or contributions, out of moneys available for the purpose, and comply with such other terms and conditions as the Treasury Board may require.

• (3) Until the Treasury Board otherwise directs, no premiums or contributions shall be assessed against the departments and Crown corporations to which these Regulations apply.