Section 4 of the Principal Act is amended -

(a) by substituting the following subsections for subsections (2), (3) and (4):

"(2) Subject to this Act, the Ombudsman may investigate any action taken by or on behalf of a reviewable agency in the performance of administrative functions where, having carried out a preliminary examination of the matter, it appears to the Ombudsman -

(a) that the action has or may have adversely affected an eligible person, and

(b) that the action was or may have been -

(i) taken without proper authority,

(ii) taken on irrelevant grounds,

(iii) the result of negligence or carelessness,

(iv) based on erroneous or incomplete information,

(v) improperly discriminatory,

(vi) based on an undesirable administrative practice,

(vii) a failure to comply with section 4A, or

(viii) otherwise contrary to fair or sound administration.

(3) The Ombudsman shall not investigate an action unless -