23 AUGUST 2005
PAGE: 1 of 644
TUESDAY, 23 AUGUST 2005
____
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:06.
The Speaker took the Chair and requested members to observe a moment
of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
WELCOMING OF SWAZILAND SPEAKER
The SPEAKER: Hon members, before we start I would like to welcome
the hon the Speaker of Swaziland, Speaker Sgayoyo Magongo, and his
delegation. [Applause.]
NEW MEMBER
(Announcement)
The Speaker announced that the vacancy caused by the resignation
from the National Assembly of Mr R K Henderson has been filled by
the nomination of Ms S J Loe with effect from 17 August 2005.
23 AUGUST 2005
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OATH
Ms S J Loe, accompanied by Mr D K Maluleke and Ms S V Kalyan made
and subscribed the oath, and took her seat. [Applause.]
LEADER OF GOVERNMENT BUSINESS
(Announcement)
The SPEAKER: Order! Hon members, before we proceed with today’s
business I wish to make the following announcements.
The President has informed me that he has appointed the Deputy
President as Leader of Government Business in the National Assembly
with effect from 28 June 2005 thereby replacing the hon Mr Charles
Nqakula who was appointed on 15 June 2005. [Applause.]
APPOINTMENT OF PARLIAMENTARY COUNSELLOR TO THE PRESIDENT AND
PARLIAMENTARY COUNSELLOR TO THE DEPUTY PRESIDENT
(Announcement)
The SPEAKER: In terms of Rule 319 I have, with effect from 18
August, designated Mr J H Jeffrey, formerly counsellor to the Deputy
President, as Parliamentary Counsellor to the President and Ms S D
Motubatse-Hounkpatin as Parliamentary Counsellor to the Deputy
President. I wish to congratulate the hon members. [Applause.]
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I do not know if the hon members in the House know these two hon
members and I would like them to rise. I request the hon members to
rise.
NEW MEMBER
(Announcement)
The SPEAKER: Mr H B Cupido has been nominated on 1 August 2005 to
fill the vacancy caused by the resignation of Mr K D S Durr. Mr
Cupido has made the solemn affirmation in my office.
Hon Cupido, hon members would like to see you. Welcome.
NOTICE OF MOTION
The
CHIEF
WHIP
OF
THE
OPPOSITION:
Madam
Speaker,
I
hereby
give
notice that I intend moving the following motion:
That the House -
(1)
notes that President Robert Mugabe has refused to
accept a loan of $5 billion from the South African government;
and
(2) therefore -
23 AUGUST 2005
PAGE: 4 of 644
(a)
expresses its gratitude and delight;
(b)
(b)
urges the government to abide by President
Mugabe’s decision and not to insist that he should take
our money;
and
(c)
debates the matter urgently.
[Applause.]
CONDOLENCES TO THE TINTO FAMILY
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Thank you, Madam Speaker.
Ndiphakamisa ngaphandle kokunika isaziso:
Ukuba le Ndlu –
(1)
iqaphele ngosizi novelwano ukushiywa kwethu nguBawo uFihla
Christmas Tinto, abaninzi bethu ebebemazi njengo “Com T”;
23 AUGUST 2005
(2)
PAGE: 5 of 644
ikhumbule ukuba uBawo uTinto walulwa ngokuzinikezela
nangokuzincama ucalucalulo nengcinezelo kweli lizwe
(3)
ikhumbule nokuba uBawo uTinto namanye amagqala omZabalazo
basebenza kakhulu ukumisela umbutho weUnited Democratic
Front ngowe-1983, emva komsebenzi omkhulu ababewenzela
umbutho wesizwe i-ANC noMkhonto weSizwe, kwanokuba
bathabatha inxaxheba emzabalazweni wokukhulula eli lizwe
lakowethu;
(4)
ikhumbule ukuba ngowe-1994, uBawo uTinto wayelilungu lale
Palamente, ephaya kwiNdlu yeeNgwevu, waza ngowe-1997
wabalilungu eNdlu yoWiso-mthetho yePhondo yase eNtshona
Koloni;
(5)
ikholelwe ekubeni ubomi beqhawe nompondozihlanjiwe wenkokeli
enjengale, bubonisa ngokumhlophe ukuzinikezela kwamalungu
ombutho wesizwe i-ANC ekudaleni intlalontle kwilizwe
liphela; yaye
(6)
idlulise uvelwano olunzulu kusapho lwakhe nakwinkosikazi
yakhe, ilungu elibekekileyo umama uBulelwa Tinto, abantwana,
izalamane, nalo lonke usapho lwakwaNyawuza, ingabalibali
oogxa bakhe awayesebenza nabo kwimibutho yabasebenzi
nakumbutho wesizwe i-ANC, ithi: “Phumla ngoxolo, Nyawuza,
Ngqungqushe, Matshob’endlovu.” Hamba kakuhle, Mkhonto!
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(Translation of Xhosa draft resolution follows.)
[I move without notice:
That the House –
(1)
notes with sadness the passing on of Mr Fihla Christmas
Tinto, known by many as “Com T”;
(2)
recalls that Mr Tinto fought tirelessly and wholeheartedly
against apartheid and oppression in this country;
(3)
remembers that Mr Tinto and other veterans worked very hard
to establish the United Democratic Front in 1983, after
working hard for the ANC and the Spear of the Nation, and
the fact that they played a role in the fighting for our
country;
(4)
also remembers that Mr Tinto was a member of the NCOP in
1994, and subsequently 1997 became a member of
the Western
Cape Provincial Legislature in 1997;
(5)
believes that the life of a hero and a well-versed leader
clearly shows the commitment of the members of the ANC in
creating a better life for all in the whole country; and
23 AUGUST 2005
(6)
PAGE: 7 of 644
conveys its heartfelt condolences to his family, his wife,
hon member Mrs Bulelwa Tinto, his children, relatives and
Nyawuza family at large and, not forgetting his colleagues
in workers’ unions and the ANC, we say: “Rest in peace,
Nyawuza, Ngqungqushe, Matshob’endlovu”. Farewell, Spear of
the Nation!]
The SPEAKER: I believe that by arrangement by the Whips those hon
members who would like to have an opportunity to say something for a
minute. Hon Gibson!
The CHIEF WHIP OF THE OPPOSITION: Mr Madam Speaker, on behalf of the
DA I wish to extend very sincere condolences to the family, the
loved ones, the friends and the political party of the late Mr
Christmas Tinto.
His is a famous name. It is a catchy name; one that is easy to
remember, but also a famous name in politics in South Africa because
of what he did in helping to move our country from apartheid
oppression to democracy and the contribution which he made will not
easily be forgotten. We honour his memory. [Applause.]
Mnu V B NDLOVU: Somlomo neNdlu ehloniphekile, egameni leqembu
leNkatha yeNkululeko sidlulisela ukukhala kwethu okokuqala emndenini
wakwamfowethu uChristmas Tinto, eqenjini likaKhongolose, emndenini
wonke, kunkosikazi uBulelwa nakuzo zonke izihlobo nabangane.
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Kuyazeka ukuthi umfowethu uTinto abanye bebethi ubenguthisha
kothisha, enokubekezela, enomoya ophansi amukela bonke abantu futhi
enesineke. Abamazi kahle bebethi ukuhola kwakhe bekungukuhola
okuhlakaniphile nokwamukelekayo kubo bonke abangamalungu angaphansi
kwakhe namkhethileyo.
Thina beNkatha yeNkululeko sikhalisana nani nina bakaKhongolose
ngokudlulelwa yiqhawe nomholi wenu. Sengathi iNkosi ingamsiza angene
ezulwini. Ngiyabonga. (Translation of Zulu speech follows.)
[Mr V B NDLOVU: Madam Speaker and hon members, on behalf of the
Inkatha Freedom Party we would like to extend our condolences,
firstly to the immediate family of our brother Christmas Tinto, to
the African National Congress, the whole family, his wife Bulelwa
and all friends and relatives.
It is well known that others used to call our brother Tinto a
teacher amongst the teachers. He had a passion for people, was
humble, receptive of all people and considerate. Those who knew him
well used to say that his leadership was a wise leadership, accepted
by all who were under his leadership and who had elected him.
We, the Inkatha Freedom Party, sympathise with you, the African
National Congress, for losing your hero and a leader. May God help
him reach his haven. Thank you.]
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Mr A HARDING: Madam Speaker, it is with great sadness and regret
that the Independent Democrats received the news of the passing away
of Mr Christmas Tinto, a well-known ANC leader and anti-apartheid
activist.
His invaluable contribution will remain with us always. His role in
recruiting young people to join the struggle is well known and he
was like a father to many of the young lions. He was humble and well
liked by all the cadres because of his pleasant disposition. He will
be remembered as a man of great wisdom and a natural leader. The
Independent Democrats wish to extend their condolences to his wife,
Bulelwa, his children, his grandchildren his great-grandchildren and
the ANC. I thank you.
Mr L W GREYLING: Mevrou die Speaker, dit is met leedwese dat kennis
geneem word van die heengaan van Christmas Tinto op 14 Augustus.
[Madam Speaker, the death of Christmas Tinto on 14 August is noted
with regret.]
He was born on Christmas Day in 1925 near Transkei and joined the
ANC in 1951. Better known on the Cape Flats as Comrade T, Tinto
played a key role in the defiance campaigns in the Western Cape
during the early 1950s.
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In recognition of his fearless anti-apartheid leadership and for his
contribution to the democratic government the Order of Luthuli was
conferred on him by President Mbeki earlier this year. Today we bid
farewell to a hero whose commitment, discipline and passion were an
inspiration to all his comrades. I wish to express our deepest
condolences to his family and his loved ones. I thank you.
[Applause.]
Mr L M GREEN: Madam Speaker, the ACDP conveys its condolences to the
family, friends and colleagues of Mr Christmas Tinto. We pay tribute
to him for his struggle against apartheid and for nonracialism.
The late Christmas Tinto was a brave and almost fearless man. He is
remembered for maintaining a positive attitude in the face of much
adversity. Not even lengthy periods of incarceration could deter him
from his cause. Mr Tinto was widely praised when he was awarded the
Order of Luthuli for the role he played in the transition to
democracy.
The ACDP acknowledges the significant contribution made by Mr Tinto
and wishes his family strength and comfort during this time of
bereavement. Our prayers are with the family in their time of
bereavement. I thank you.
Mr G T MADIKIZA: Madam Speaker and hon members, the UDM joins the
House in paying tribute to the late Mr Fihla Christmas Tinto. We
extend our heartfelt condolences to his family and friends during
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this time of bereavement. He will be remembered particularly for his
active role in the establishment of the UDF.
By all accounts, he was not only a leader who walked at the front
but also a unifier. Even in his personal life his family has
attested to the fact that he possessed a unique humaneness that
always sought to bring people together no matter how far removed
they may have been physically or otherwise.
It is always sad to bid farewell to members of the liberation
struggle who went on to become leading role-players in the Houses of
Parliament. As with those who have gone before him, we can at least
find consolation in the fact that Mr Tinto lived a full life and
left a lasting legacy in pursuit of democracy and freedom.
Mr P J NEFOLOVHODWE: Azapo learned with shock and sadness of the
untimely death of Comrade Christmas Tinto. Azapo knew him when many
Azapo members were in gaol on Robben Island with him and he was
indeed an inspiration in the fight against apartheid. We wish to
join the ANC and all comrades within the alliance in celebrating the
life of a true patriot, comrade in arms and indeed a dedicated
fighter who spent most of his adult life in the struggle for
freedom. Azapo expresses its condolences to the Tinto family and
relatives. May his soul rest in peace. I thank you.
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Ms S RAJBALLY: Madam Speaker, it is sad when one struggled for one’s
country and achieved freedom and then one is not here to enjoy it.
The MF associates itself with the House and expresses its heartfelt
condolence to Mr Fihla Christmas Tinto’s family and says: Hamba
kahle, we are going to miss you. May you rest in peace. Thank you
very much.
Dr C P MULDER: Geagte Mevrou die Speaker, die VF Plus wil hom graag
vereenselwig met die mosie, gestel deur die agb Hoofsweep, waarin hy
hulde betuig het teenoor Mr Tinto wat afgesterf het. Ons
vereenselwig ons daarmee, ook met ander uitsprake gemaak deur ander
lede van die Raad, en wil ook graag ons simpatie en meelewing oordra
aan sy familie en sy ander naasbestaandes. Baie dankie. [Applous.]
(Translation of Afrikaans speech follows.)
[Dr C P MULDER: Madam Speaker, the FF Plus would like to associate
itself with the motion moved by the hon Chief Whip, in which he pays
tribute to the late Mr Tinto. We associate ourselves with this
statement and endorse the remarks made by other members of the
House. We would also like to convey our sympathy and condolences to
his family and next of kin. Thank you. [Applause.]]
Mr N T GODI: Madam Speaker, the PAC wants to join the House and the
other speakers in expressing our deepest condolences to the Tinto
family and our solidarity with the motion on the occasion of his
passing away.
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As we mourn his passing away and celebrate his life we remember that
Comrade Tinto belonged to a generation whose contribution, whose
fearlessness and whose optimism during the dark years of apartheid
propelled and gave hope that democracy was going to prevail at the
end of the day.
Comrade Tinto, unlike some of his comrades, lived to see the dawn of
liberation and was able to make a contribution in the transformation
of our country and we want to believe that as we continue with the
process of democratising and transforming our country his legacy
will continue to inspire and guide us all. [Applause.]
The SPEAKER: I think it is obvious that there are no objections to
the motion and I would take this opportunity to add the heartfelt
condolences of both the Deputy Speaker and myself and we will
accordingly convey the condolences of the House to the Tinto family.
Debate concluded.
Motion agreed to.
CONGRATULATIONS TO SPRINGBOK RUGBY TEAM ON BEATING AUSTRALIA AND
BEST WISHES FOR UPCOMING MATCH AGAINST ALL BLACKS
(Draft Resolution)
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Mr D K MALULEKE: Madam Speaker, I hereby move without notice:
That the House -
(1) congratulates the Springbok rugby team on their victory
against Australia in Perth in the Tri-nations Competition on
Saturday;
(2) notes that this victory is the first away win against a major
rugby nation in seven years;
(3) commends the team for the great maturity and commitment it has
shown on the field; and
(4) wishes the team and coaching staff well and every success for
the crucial clash against the All Blacks in Dunedin this
coming Saturday.
Agreed to.
DEATH OF VICE PRESIDENT OF SUDAN
(Draft Resolution)
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move
without notice:
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That the House -
(1)
notes the great tragedy that befell the people of Sudan when,
on 30 July 2005, a Ugandan presidential helicopter carrying
Dr John Garang de Mabior, Vice President of Sudan, crashed,
killing him and others;
(2)
recalls that Dr Garang de Mabior led the Sudan People’s
Liberation Movement and Army for more than 20 years and that
in January this year the SPLM and the Government of Sudan
signed a comprehensive peace agreement;
(3)
further recalls that on 9 July 2005, Dr Garang de Mabior was
sworn in as the first Vice President of a peaceful Sudan and
that Dr Garang was committed to the unification of Sudan and
peace among its people;
(4)
expresses its commitment to helping the people of Sudan in
their continuing effort to realise peace, development and
prosperity in their country; and
(5)
conveys its heartfelt condolences to the Garang family, the
SPLM, the Sudanese government and the Sudanese people at this
tragic and untimely loss.
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Agreed to.
CELEBRATION OF 130-YEAR ANNIVERSARY OF AFRIKAANS
(Member’s Statement)
Die HOOFSWEEP VAN DIE MEERDERHEIDSPARTY (ANC): Mevrou die Speaker,
die ANC wil graag sy gelukwense oordra aan die Afrikaanse
taalgemeenskap in ons land met die 130-jarige viering van Afrikaans
as taal. Die ontwikkeling van Afrikaans die afgelope 130 jaar tot ’n
volwaardige wetenskaplike taal behoort as inspirasie te dien vir die
ontwikkeling in Suid-Afrika van ander inheemse tale.
[Tussenwerpsels.]
Inderdaad is Afrikaans een van slegs vier tale wat in die 20ste eeu
tot ’n wetenskaps-, literêre en handelstaal kon ontwikkel. Die ANC
is ook dankbaar dat Afrikaans die afgelope dekade die stigma van
onderdrukkerstaal kon afwerp en in die volksmond kon ontwikkel tot
algemene spreektaal van ’n snel groeiende Afrikaanse taalgemeenskap.
[Tussenwerpsels.] Die ANC verbind hom opnuut tot pogings om
Afrikaans, net soos ander inheemse tale, te beskerm en te bevorder.
Hartlik dankie. [Applous.] (Translation of Afrikaans member’s
statement follows.)
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[The CHIEF WHIP OF THE MAJORITY PARTY (ANC): Madam Speaker, the ANC
would like to convey their congratulations to the Afrikaans language
community in our country on the 130-year celebration of Afrikaans as
a language. The development of Afrikaans over the past 130 years
into a full-fledged scientific language should serve as an
inspiration for the development of other indigenous languages in
South Africa. [Interjections.]
In fact, Afrikaans is one of only four languages that could develop
into a scientific, literary and commercial language in the 20th
century. The ANC is also grateful that Afrikaans could, in the past
decade, shed the stigma of being the language of the oppressor and
in popular usage could develop into the colloquial language of a
rapidly expanding Afrikaans language community. [Interjections.] The
ANC recommits itself to efforts to protect and promote Afrikaans, as
is the case with other indigenous languages. Thank you very much.
[Applause.]]
THE SO-CALLED ZUMA CAMP IN THE ANC
(Member’s Statement)
Mrs S M CAMERER (DA): Madam Speaker, the so-called Zuma camp in the
ANC, which includes Cosatu, the Young Communists and the feckless
ANC Youth League, persist in demonstrating, at best, a profound
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ignorance of the law and our Constitution, and, at worst, a cynical
disrespect for the rule of law and our legal institutions.
Their rabid, ill-considered statements in support of the man they
regard as their leader, ex-Deputy President Jacob Zuma, attacking
the Scorpions, the National Prosecuting Authority and the judiciary,
are doing damage to the ANC’s image as an organisation committed to
the rule of law.
The Zuma camp seems to believe that there is one law for poor,
ordinary folk and another for the politically powerful. In other
words, they see themselves as above the law. If they reflect the
view of their hero – and he has not contradicted them publicly –
then God help South Africa if he should ever become the President.
[Interjections.] It would mean the end of constitutionalism and the
end of good governance and the rule of law, and would ensure that
our country became part of the African basket-case scenario. The ANC
should not pussyfoot around these constitutional terrorists.
Contrary to what the Zuma camp claim, in terms of the National
Prosecuting Authority Act the Scorpions had every right to enter Mr
Zuma’s house and offices and those of his associates and advisers as
they were in possession of a valid search warrant.
There are specific provisions to protect privileged information, but
any attorney-client privilege is not an unlimited right, and
23 AUGUST 2005
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attorneys’ offices are not sacrosanct. It’s really only Mr Zuma’s
statements to his attorneys and perhaps even a confession that might
be privileged. Zuma’s attorneys were entitled to withhold documents
they alleged contained privileged information, but they failed to do
so. The National Prosecuting Authority has the final discretion to
investigate and prosecute cases. Thank you. [Applause.]
ISRAELI PULLOUT FROM GAZA STRIP
(Member’s Statement)
Mr M B SKOSANA (IFP): Madam Speaker, this House should compliment
the Israelis and the Palestinian leaders for the courageous steps
they have taken in what is now referred to as “the Gaza pullout”,
but which is, in fact, the implementation of the subprovision of the
Oslo Accord, namely the Cairo Agreement of 4 May 1994. The civil
societies should, equally, be applauded for their co-operation in
this.
This has been a long, hard and torturous road since the formation of
the state of Israel in 1948 throughout the demands of the
Palestinians for an independent homeland based on the two-state
solution to accommodate both the Arabs and the Jews. It has been a
long way from the intifada in 1982, the surging of the Palestinian
uprising that could not be subdued by military means alone, but
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which made political initiatives and negotiations imperative for
peace and stability.
It has been a long way from the recognition of the state of Israel
by the Palestinian National Council in November 1988 to Yitzhak
Shamir’s 1989 twin-track peace plan, the subsequent Madrid Formula
and the Gaza and Jericho Agreement, outlining the perimeters of
Palestinian interim self-rule.
Oslo II, signed in Washington, the USA, on 28 September 1995, was in
fact a consolidation of past agreements and the foundation of what
is popularly known as the roadmap. It is now self-evident that the
axiomatic principle of land for peace is central to a destiny
intertwined, that is peaceful coexistence between the Israelis and
the Palestinians.
Therefore, the European Union, the United States, Russia and the
Republic of South Africa ought to be commended for their positive
role in this process. I thank you. [Applause.]
A CALL TO UPHOLD THE RULE OF LAW
(Member’s Statement)
Mr A MLANGENI (ANC): Madam Speaker, the manner in which the
Scorpions raided certain residencies in relation to the
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investigation on the ANC Deputy President refers. The sensational
nature of the investigation processes criminalises the ANC Deputy
President, even before he gets a chance to appear before a court of
law.
We further condemn the statement made by Cosatu, calling on the
President to disregard the Constitution and interfere with due legal
processes. The call by Cosatu that the President should reinstate
Comrade Jacob Zuma fundamentally undermines the President’s
prerogative to appoint his Cabinet.
We call on all South Africans to uphold the rule of law as enshrined
in our Constitution. [Applause.]
COSATU’S LACK OF COHERENT POLICY
(Member’s Statement)
Mr M STEPHENS (UDM): Madam Speaker, the UDM noted with interest the
launch yesterday of the so-called new UDF by Cosatu and assorted
others. Cosatu leaders publicly avowed their support for the ruling
party and their commitment to the ruling alliance, yet they are
seeking a vehicle to oppose major aspects of the ruling party’s
policies. Are they in government or are they in the opposition?
Straddling the fence is such an undignified position.
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Cosatu obviously has a major identity crisis on hand. It represents
an important section of our society, but are they a political party
or a trade union? Do they represent any consistent political
philosophy? Increasingly the organisation has a schizophrenic
approach. They lack a coherent policy stance. Do they support the
former Deputy President’s right to a trial, or do they oppose it?
Are they campaigning for the ANC in the local government elections
or are they fighting Gear? Are they part of the ruling alliance or
in opposition? They appear to want to do both.
Up to now the new UDF has not added a single new idea to the
national debate on poverty and unemployment. Admittedly, the overall
noise volume is going up but the policy content is not increasing.
The UDM and other social democrats in the opposition are already
pursuing the very goals now adopted by the new UDF. If Cosatu and
their partners are really serious about attaining those goals, they
should have the honesty and the courage to give up the comfortable
spoils of government and join us in the opposition. I thank you.
[Applause.]
DA SUPPORT FOR DEVELOPER
(Member’s Statement)
Me F BATYI (ID): Mevrou die Speaker, op 18 Julie 2005 is daar ’n
gemeenskapsvergadering te Westlake, Constantia, gehou. Tydens
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hierdie vergadering wou ’n ontwikkelaar, John Vivieros, die
gemeenskap oorreed om hul huise vir ’n belaglike prys van R40 000
aan hom te verkoop. Ek is in besit van beëdigde verklarings van die
gemeenskap wat weier om hul huise aan die ontwikkelaar te verkoop.
Dié stukkie waardevolle grond in Constantia en die huise wat ons
mense besit, moet beskerm word teen ongevoelige uitbuiters onder die
dekmantel van besorgdheid.
Hierdie insident bevraagteken die integriteit van die DA wat hon
daarop
roem
dat
hulle
besorg
is
oor
armoedeverligting
en
die
behuisingsnood van ons mense. [Tussenwerpsels.] Die DA-raadslid Leon
van Rensburg was by die vergadering en het die ontwikkelaar gehelp
om mense te oorreed om hul huise te verkoop. [Tussenwerpsels.]
Dit is interessant dat die ontwikkelaar terdeë bewus is dat die
uitbreiding grens aan die nuwe Amerikaanse ambassade. Die waarde van
die
grond
alleen
beloop
miljoene
rande.
Wat
is
dit
anders
as
“daylight robbery”? Waarom het hy wat ’n prokureur en raadslid is
nie
die
mense
ingelig
oor
die
voor-
en
nadele
en
hul
nou
moet
verantwoordelikhede om nie hul huise te verkoop nie?
Hulle
wil
die
regerende
ANC-party
laat
vuil
lyk,
maar
dieselfde mense weer gaan plak op ongedienste grond in Ottery. Mense
maak oop jul oë! Die DA het nie verander nie. ’n Jakkals verander
van hare maar nie van snare nie! Dankie. [Applous.] (Translation of
Afrikaans member’s statement follows.)
23 AUGUST 2005
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[Ms F BTYI (ID): Madam Speaker, on 18 July 2005 a community meeting
was held at Westlake, Constantia. During this meeting a developer,
John Vivieros, sought to convince the community to sell their houses
to him for the ridiculous price of R40 000. I am in possession of
sworn affidavits from members of the community who have refused to
sell their houses to the developer. This valuable piece of land in
Constantia and the houses that our people own should be protected
from insensitive exploiters who pretend to be concerned.
This incident places a questionmark over the integrity of the DA,
who boast that they are concerned about relieving poverty and the
lack of housing among our people. [Interjections.] DA councillor
Leon van Rensburg was at the meeting and helped the developer to
convince people to sell their houses. [Interjections.]
It is interesting that the developer was well aware that the
extension borders on the new American embassy. The land alone is
worth millions of rands. What else is this but daylight robbery? Why
did he, as an attorney and councillor, not inform the people about
the pros and cons and their responsibility not to sell their houses?
They want to make the ruling ANC party look bad, but now these same
people have to go and squat on unserviced land in Ottery. People,
open your eyes! The DA has not changed. A leopard does not change
its spots! Thank you. [Applause.]]
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MUGABE’S RULE SHOULD END
(Member’s Statement)
Dr P W A MULDER (VF PLUS): Mevrou die Speaker, hier word vandag
sulke mooi Afrikaans gepraat en nadat ek na die Hoofsweep geluister
het, is dit vir my duidelik dat Afrikaans baie belangrik is. Eers
het die DA daarna gevry en nou die ANC. Ons het waardering vir die
mooi Afrikaans wat die Hoofsweep vandag gepraat het.
Die VF Plus stem saam met president Mbeki, wat in verlede week se
ANC Today skryf dat die 14 SADC-lande gemeenskaplike probleme het,
waarvan een Zimbabwe is. Hierdie lande sal moet saamwerk om
oplossings vir hierdie probleme te vind. As Zimbabwe dan in duie
stort, raak dit al hierdie lande en nie net Suid-Afrika nie. Waarom
word dit dan van Suid-Afrika alleen verwag om Zimbabwe te red met ’n
finansiële lening van etlike miljarde rande?
President Mugabe is nou 25 jaar lank president van Zimbabwe en hy is
ouer as 80. As enige lening van Suid-Afrika die posisie van
president Mugabe in Zimbabwe gaan versterk of sy regering se posisie
gaan versterk, sal die VF Plus dit ten sterkste teenstaan. Dit is
ongelukkig tyd vir pres Mugabe om te gaan. Suid-Afrika kan Zimbabwe
help opbou nadat mnr Mugabe gegaan het.
23 AUGUST 2005
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Die VF Plus is wel ten gunste daarvan dat maatreëls getref word om
die gewone mense van Zimbabwe wat tans baie swaar kry en onderdruk
word, nou te help. Hierdie hulp moet verkieslik geskied deur die
kerke en welsynsorganisasies ten einde te voorkom dat president
Mugabe dit kan misbruik.
Waar die Internasionale Monetêre Fonds, die Verenigde Nasies en die
Europese Unie tans druk op president Mugabe se regering plaas, moet
Suid-Afrika nie die swak skakel word deur die Mugabe-regering nou
suurstof te gee en sodoende die lyding van die mense in Zimbabwe
langer uit te rek nie. Ek dank u. (Translation of Afrikaans member’s
statement follows.)
[De P W A MULDER (FF PLUS): Hon Madam Speaker, such beautiful
Afrikaans is being spoken here today and having listened to the
Chief Whip it is clear to me that Afrikaans is very important. First
the DA was enamoured of it and now the ANC. We appreciate the
beautiful Afrikaans spoken by the Chief Whip today.
The FF Plus agrees with President Mbeki, who wrote in last week’s
ANC Today that the 14 SADC countries have common problems, one of
which is Zimbabwe. These countries will have to co-operate to find
solutions to these problems. If Zimbabwe collapses totally, this
will affect all these countries and not only South Africa. Why then
is South Africa alone expected to rescue Zimbabwe with a financial
loan of several billions of rands?
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President Mugabe has now been the president of Zimbabwe for 25 years
and he is over 80 years old. If any loan from South Africa is going
to strengthen the position of President Mugabe in Zimbabwe or
strengthen the position of his government, the FF Plus will strongly
oppose it. It is unfortunately time for President Mugabe to go.
South Africa can help
build up Zimbabwe after Mr Mugabe has left.
The FF Plus is, however, in favour of measures being taken now to
help the ordinary people of Zimbabwe, who at present are suffering
greatly and are being oppressed. This assistance must preferably be
given through the churches and welfare organisations in order to
prevent President Mugabe from abusing it.
Whereas the International Monetary Fund, the United Nations and the
European Union are at present putting pressure on President Mugabe’s
government, South Africa must not become the weak link by now
resuscitating the Mugabe government and in this way further
prolonging the suffering of the people in Zimbabwe. I thank you.]
HOUSING DELIVERY
(Member’s Statement)
Ms M M RAMAKABA-LESIEA (ANC): Thank you, Madam Speaker, fifty years
ago the Congress of the People declared in the Freedom Charter that
there shall be houses, security and comfort. The apartheid regime
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bequeathed to the democratic South Africa informal housing
segregated along racial lines. Special distortions reinforce
apartheid cities and confine black people to areas with no economic
opportunities.
The democratic government is turning the tide on housing delivery.
The new settlements plan seeks to promote the achievement of a
nonracial, integrated society through the development of sustainable
human settlements and quality housing. Joe Slovo is but one of the
informal settlements where by December 2005, the ANC-led government
will deliver 22 000 units of housing stock, and 8 000 units will be
completed.
The transformation of informal settlements into integrated,
sustainable housing contributes to job creation. Local economic
development, black economic empowerment and special integration and
the implementation of a people’s contract to create work and fight
poverty will bring a better life for all. I thank you.
MONEY CHANNELED TO ANC BY IMVUME
(Member’s Statement)
Ms H ZILLE (DA): Thank you, Speaker. At the heart of the Oilgate
scandal lies the undisputed fact that R11 million of taxpayers’
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money was channelled into the ANC’s 2004 election campaign from the
state company PetroSA, by Imvume Management.
The CHIEF WHIP OF THE MAJORITY PARTY: What is wrong with that?
Ms H ZILLE: What’s wrong with that? [Interjections.] I’ll tell you
what is wrong with that. A sum of R11 million cannot simply vanish
without somebody being called to account. That is the problem. The
ANC says: What is wrong with that? It is the utmost corruption that
any government can perpetrate. [Interjections.] And yet, none of the
parties involved have adequately explained what amounts to a gross
abuse of state resources for the ANC’s political gain.
Whether it is placing loyal ANC cadres into key positions in
independent institutions, such as the Public Protector who also
doesn’t see anything wrong with it, or misusing public money for
party-political purposes, the ANC continues to place its own
interests above those of ordinary South Africans. In doing so, the
ANC ignores the distinction between party and state – and I suppose
you’re going to ask: What is wrong with that? It undermines the
integrity of our Constitution’s Chapter 9-institutions.
Until the ANC repays that money and answers all outstanding
questions satisfactorily, the DA will not let this matter rest.
[Applause.]
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The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT:
Speaker, on a point of order: If I heard Ms Zille correctly, she
accused the government of corruption. As far as I know, the
government has not been found guilty of corruption. It is
unparliamentary and I would ask that it be withdrawn
unconditionally.
The SPEAKER: I think it is better for me to check the Hansard, hon
member, and then I will come back to the issue.
THE ROAD BETWEEN ZEERUST AND MAFIKENG-MMABATHO
(Member’s Statement)
Mr B E PULE (UCDP): Thank you, Madam Speaker. The UCDP would like to
congratulate the North West provincial government on the improvement
of the road between Zeerust and Mafikeng-Mmabatho. The concern,
however, is the method used to construct it, because it is a recipe
for more accidents, as has happened already.
The road is approximately 80 kilometres long and two contractors are
engaged for phase 1 and phase 2 respectively. There is always a
traffic jam because of the two stops per phase, with vehicles having
one pair of wheels on the old tarred road and the other pair on the
gravel road that is never maintained, except for pouring water on
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corrugations. One drives for almost two hours to cover such a short
distance.
It would have been more cost-effective to make detours than to try
and save money at the expense of losing lives. An intervention by
the Department of Transport, even at this late stage, will still
save some lives. Driving on that road, especially at night, is real
mayhem.
ISRDS IN LIMPOPO
(Member’s Statement)
Mrs T L P NWAMITWA-SHILUBANA (ANC): Thank you, Madam Speaker. The
ANC is happy to note that there is remarkable progress in the
Integrated Sustainable Rural Development Strategy, launched in 1999.
In 2000 President Mbeki visited the Sekukhune Area in Limpopo, this
area was included in the ISRDS and he declared it a presidential
nodal point.
The rural area of Sekukhune in Limpopo, like many other rural areas
of our country, was neglected by the past racist government. Since
then, a total of R355 million was spent to supply water and a total
of R12,8 million was spent on the supply of electricity. Klara
Sekwathi who has lived in Mamone village outside Jane Furse for more
than four decades says, “Sekukhune used to be a very poor area with
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only teachers and nurses able to find employment. Today Sekukhune
has been put on an improved path for sustainable development.”
The ANC commends the initiatives taken by our government to extend
the fight against poverty and unemployment to rural areas and other
poverty-stricken communities. I thank you. [Applause.]
DISMAL PERFORMANCE OF MUNICIPALITIES
(Member’s Statement)
Mr W P DOMAN (DA): Madam Speaker, the ANC has dismally failed in its
governance of municipalities. Communities all over the country have
realised that they were misled by empty promises and violent
protests have engulfed many municipalities. Evaluated on
performance, I do not know of one ANC-governed municipality where
the ANC deserves a second term. [Interjections.] On the other hand,
the DA municipalities such as Nokeng, Satemane, George and Cape
Agulhas are shining examples of how municipalities should be run.
The government itself admits that 136 out of 284 municipalities need
to be rescued. A staggering amount of R32 billion is owed to
municipalities in outstanding rates and taxes. This figure has
doubled since 2000 as a result of the ANC’s lack of political will.
Many ANC-appointed municipal managers do not have the necessary
qualifications but are awarded salaries approaching the million rand
mark.
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Nog erger as die swak administrasie is die nepotisme en korrupsie
wat feitlik in elke munisipaliteit aanwesig is. In Kaapstad het die
ANC-burgemeester Mfeketo net nou die dag die beheer oorgeneem en
haar broer is al reeds aangestel as die adjunkhoof van die
munisipale polisie. [Tussenwerpsels.] Soos die ANC aangaan, sal
familiegeskiedenis in die toekoms deur munisipale aanstellings
nagevors kan word.
Wat korrupsie betref, is daar ondersoeke hangende in feitlik elke
munisipaliteit wat deur die ANC beheer word. In Bloemfontein is die
burgemeester van die Mangaung-munisipaliteit verlede maand saam met
sy vrou en vier ander beamptes in hegtenis geneem en van diefstal,
bedrog en korrupsie aangekla. Meer as R100 miljoen van die
belastingbetaler se geld is daarby betrokke.
Daarom, geagte Speaker, vereenselwig ek my met wat mnr Tony Leon
gister gesê het: Ons sal net slaag as ons die behoefte aan
regstellende aksie opweeg teen die meer basiese en grondliggende
behoefte aan bevoegdheid en doeltreffendheid in plaaslike regering.
Ons moet mislukkings straf en prestasie beloon. Bowenal, ons moet
die mense voorop stel, en dit is wat die DA doen. [Applous.]
(Translation of Afrikaans paragraphs follows.)
[Nepotism and corruption, which are present in virtually every
municipality, are even worse than the poor administration. In Cape
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Town ANC mayor Mfeketo took over just the other day and already her
brother has been appointed as the deputy chief of the municipal
police. [Interjections.] The way the ANC is carrying on, in future
it will be possible to trace family lineage by way of municipal
appointments.
With regard to corruption, there are investigations pending in
virtually every municipality that is controlled by the ANC. Last
month the mayor of Mangaung in Bloemfontein, his wife and four other
officials were arrested and charged with theft, fraud and
corruption. More than R100 million in taxpayers’ money is involved
here.
Therefore, hon Speaker, I agree with what Mr Tony Leon said
yesterday: We will only succeed if the need for affirmative action
is weighed against the more basic and fundamental need for
competency and efficiency in local government. We must punish
failures and reward accomplishments. Above all, we must put the
people first and this is what the DA is doing. [Applause.]]
DISTRICT EDUCATION AND SERVICE DELIVERY
(Member’s Statement)
Mr A M MPONTSHANE (IFP): Madam Speaker, the IFP is concerned that
the provision of education remains and continues to be the weakest
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at district level in spite of the department’s undertaking two years
ago to turn our districts into sites of delivery.
In some districts, particularly in the Eastern Cape, officials have
to contend with makeshift buildings. At this level, inspectors of
schools do not have decision-making powers except for the powers of
a messenger. Hence the system cannot deal effectively with the
question of temporary teachers.
In some instances it takes more than three months to pay teachers,
again because of disorganisation at this level. Again, we urge the
Minister to take urgent steps to ensure that districts become
accountable sites of delivery. I thank you.
MANAGEMENT OF ECONOMY BY GOVERNMENT
(Member’s Statement)
Mr S E ASIYA (ANC): Madam Speaker, the ANC welcomes the decision
taken by hon President Mbeki to form a task team to investigate ways
to accelerate economic growth, generate more jobs and reduce poverty
and underdevelopment. The task team will be led by the hon Deputy
President of the Republic of South Africa, Comrade Phumzile MlamboNgcuka.
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We applaud the progress made by the ANC government in managing the
economy. These efforts have not gone unnoticed. Recently the Centre
for Policy Studies reported in a special edition, and I quote:
South Africa’s macroeconomic success over the past decade has been
considerable and unprecedented by global standards.
The Deputy Managing Director of the International Monetary Fund, Ms
Anne O Krueger, said of our country, and I quote:
These achievements are remarkable; all the more so given that this
economic progress has been made during a period of unprecedented
political and social transformation.
The setting up of the task team should ensure that the nation goes
beyond these remarkable achievements with the specific objective of
including in the economic prosperity more South Africans, especially
blacks, women, the youth and other marginalised sections of our
nation.
We wish the hon Deputy President and her team success in its work to
ensure a growing economy that benefits all South Africans. Thank
you, Madam Speaker. [Applause.]
The SPEAKER: Before we move on to ministerial responses, I just want
to point out to hon members that they should not exceed the time
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allocated for their statements. I have been as generous as I could
be, but next time I won’t be so generous. Members have taken between
30 and 50 seconds beyond the time they are supposed to take. So
please, hon members, when you plan your statements, do budget
according to the time allocated and agreed.
The CHIEF WHIP OF THE MAJORITY PARTY: On a point of order, before
that, Madam Speaker: When the Minister of Finance entered the House,
I saw him kiss the Minister of Correctional Services. [Laughter.]
The SPEAKER: Is that a point of order or a point of observation?
The CHIEF WHIP OF THE MAJORITY PARTY: On enquiry, I was informed
that it is the birthday of the Minister of Correctional Services. I
would like you to rule whether it is parliamentary for Ministers to
kiss each other in the House. [Laughter.] [Applause.]
The CHIEF WHIP OF THE OPPOSITION: Madam Speaker, may I address you
on that point of order, because today also happens to be the
birthday of the shadow minister of correctional services.
[Laughter.] I haven’t kissed him yet, but I will now, if you’d like.
The SPEAKER: Maybe, from the Chair, I should take the opportunity to
wish the hon members a happy birthday. [Applause.]
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HOUSING IN THE WESTERN CAPE AND THE INTEGRATED RURAL
DEVELOPMENT PROGRAMME
(Minister’s Response)
The MINISTER FOR AGRICULTURE AND LAND AFFAIRS: Madam Speaker and
members, I would like to react to two statements that were made by
members. The first one was on the housing issue here in the Western
Cape, that indeed is a matter of concern for government. I think
that all of us, as parliamentarians in the House, have to be
concerned about it because, indeed, when we try to ensure that we
improve the quality of life of the people, we need to do so with
honesty.
As members of Parliament and as government, as well as South
Africans, we are dealing with the legacy of our past that ensured
that the majority of our people never had access to even basic
services, including shelter. It can, therefore, not be correct that
those among us who might have enough resources to buy other people
out can actually have the privilege to do so at the expense of the
poor. And I hope that the Portfolio Committee on Housing, together
with the Minister of Housing, will be able to reflect on this matter
so that we can find a way in which we can ensure that we protect the
poor from those who have access to resources.
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Members will recall that this issue also arose in relation to the
issue of tenure security in rural areas, where the debate was
whether we move immediately to full title and what the dangers
inherent in this were. I think this example of the Western Cape
indicates to us what the likely dangers are if we were to move
immediately to a full title programme without taking into
consideration the issue of protection of the vulnerable and the
poor.
Secondly, I think that on the issue of the Integrated Rural
Development Programme Strategy, it is true that when we identified
this programme our intention was to ensure that we changed the
character of South Africa, with a clear focus on those people who
are underprivileged, and that as we did so as government, to ensure
that there was a level of co-ordination amongst all spheres of
government.
We have also indicated in this House some of the difficulties that
have resulted in our not being able to move with speed with regard
to some of these issues. Some of them relate to the capacity levels
in municipalities. Other issues, of course, relate to resources,
given the competing needs. But I can assure hon members that in all
the rural and urban nodes there have been interventions. They might
not be what we all wanted today, but I think they are a step in the
right direction.
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Through those interventions we have been able to learn how we can
work as the different spheres of government in attacking the problem
of poverty. I thank you. [Applause.]
MANAGEMENT OF ECONOMY, RESPONSIBLE USE OF PUBLIC RESOURCES
AND COSATU’S LAUNCH OF NEW UDF
(Minister’s Response)
The MINISTER OF FINANCE: Madam Speaker, I’ll deal briefly with three
issues. Firstly, responding to hon Asiya: it is correct that there
is a large task force that the Deputy President is heading. The job
has just become a lot easier because the GDP figures for the second
quarter which were released this morning reflect that the economy
grew by 4,8% in this second quarter. So the work has become a lot
easier for all of us. [Applause.] It is clear that the hand of the
Deputy President is helping the growth very quickly. [Applause.]
In response to the hon Mulder, I can give him the assurance that I
have given publicly, that we will not be cavalier with public
resources in South Africa. We can deal with this issue in different
ways. On Zimbabwe or on everything that you have ever spoken about,
hon Zille, we are not cavalier with the finances of this country, or
of the taxpayers. Thank you very much.
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I want to turn next to the hon Stephens. It’s not often that I find
myself in agreement with what is said by members from across the
House, but I want to agree with him. You see, I think that it is
important to recognise that this initiative, which was launched last
night, is trying to capture the spirit of the United Democratic
Front in a very different time and space.
The United Democratic Front served its purpose and had amongst its
guiding principles the fact that it would not ever replace the
liberation movements of our people. So whatever individuals are
trying to achieve in the name of the United Democratic Front has to
be written off as populist and opportunist. [Applause.]
The history of the struggle is the history of collectives. I have
not seen anything but one individual’s name associated with this.
Unfortunately he missed out because he wasn’t there for the United
Democratic Front. He has also never been a member of the ANC. If he
were, he would know exactly what our policies are. He would know
that a resolution was adopted by the ANC at the Mafikeng conference
in 1997 that confirms that there is an interrelationship between the
RDP and Gear, and he would not be so silly as to ask the ANC to
campaign against its own existing policies.
I thought that we shouldn’t actually give this initiative too much
attention because I am sure that it will float like a lead balloon.
Thank you very much. [Applause.]
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DEVELOPMENT OF FRAMEWORK TO GUIDE EDUCATION DISTRICTS
(Minister’s Response)
The MINISTER OF EDUCATION: Madam Speaker, for once, mina noBaba
uMpontshane siyavumelana [Mr Mpontshane and I agree]. I agree that
indeed more needs to be done to strengthen the districts so that
they can execute a professional mandate adequately.
With my colleague in the Eastern Cape, we are working very hard to
ensure that this happens, but it must happen nationally. Therefore,
out of the study on the functioning of districts, we have begun to
develop a framework that will guide districts throughout the country
and guide provinces in terms of resources and structures of the
district offices so that they are able to execute a mandate that
promotes the kind of quality educational support that you are
referring to.
Bendifuna ukuthi nje ndiyavuya, ngoba siyavumelana namhlanje, kwaye
ndiyathemba ukuba nangomso siza kuvumelana. Ndiyabulela. [I just
wanted to say that I am happy, because we agree with each other
today and I hope that we will agree tomorrow. I thank you.]
RECOGNITION OF CONSTITUTIONAL RIGHTS
23 AUGUST 2005
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(Minister’s Response)
The MINISTER OF DEFENCE: Madam Speaker, the struggle against the old
order was basically a struggle for constitutionalism. It took root
from the fact that the Union Act of 1910 denied the majority of
South Africans their constitutional rights, and subsequent actions
of white rule perpetuated that.
Successive generations of the people of our country, black and
white, who joined the ranks of the liberation movement understood
that it was crucial that if the future was to benefit everybody a
constitutional order should be introduced that recognised the rights
of all.
I think that the 1994 achievement of our democracy crowned the
efforts of all of us with the success that we have been hungering
after. The rights enshrined in our Constitution are there for all.
Everyone has, amongst other things, the right to freedom of speech.
So we will grant this right and we must maintain it for all South
Africans.
What, nevertheless, we would not allow is for that right of
expression to be used to undermine the Constitution, to be abused in
such a way as to make a banana arrangement of the current democracy
and the Republic.
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So the statement by hon Mlangeni that we carry a responsibility to
defend the Constitution in our democracy, that has our full support
and Cabinet will remain loyal to that goal. [Applause.]
PERFORMANCE OF MUNICIPALITIES
(Minister’s Response)
The DEPUTY MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Madam
Speaker, in response to what the hon Doman has referred to …
[Interjections.] It’s not important. What I would like to say is
that it is very easy for him to start blaming the ANC local
government, forgetting that they were, in fact, in charge in the
City of Cape Town and they left that mess untouched. That is the
reason the ANC government is struggling in this province. Don’t
forget so easily. You were there before and you did nothing about
it.
Now, what the ANC local government is doing at the moment is dealing
with the legacy of the past. What we are trying to do is to empower
these municipalities because the past gave us the bucket system, and
we are trying to get rid of that. That is exactly what we are doing
now.
He has failed to mention what the DA mayor in the West Coast has
done in terms of corruption. That mayor paid with municipal credit
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cards for his wife’s overseas trip. That you must mention.
[Interjections.]
When it comes to the local government elections we will all be in
the field, but I am telling you that the ANC is going to show you.
Perhaps you are heartbroken because you have failed to gain from the
floor-crossing. You have won nobody and you are not going to win
anybody. You will remain the small party that you are. Thank you.
[Applause.]
CONSIDERATION OF REPORT OF AD HOC COMMITTEE ON APPOINTMENT OF
DEPUTY PUBLIC PROTECTOR – NOMINATIONS FOR APPOINTMENT OF DEPUTY
PUBLIC PROTECTOR
There was no debate.
The Chief Whip of the Majority Party moved: That the report be
adopted.
Motion agreed to.
Report accordingly adopted.
RATIFICATION OF DECISION TO ESTABLISH AD HOC JOINT COMMITTEE TO
CONSIDER DRAFT AMENDMENT REGULATIONS TO PUBLIC FUNDING OF
REPRESENTED POLITICAL PARTIES ACT, 1997
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There was no debate.
Decision of the Speaker of the National Assembly and Chairperson
of the National Council of Provinces to establish an Ad Hoc Joint
Committee to consider draft amendment regulations to Public
Funding of Represented Political Parties Act, 1997 (Act 103 of
1997), ratified.
RATIFICATION OF DECISION OF JOINT SUBCOMMITTEE OF JOINT PROGRAMME
COMMITTEE TO FAST-TRACK CONSTITUTIONAL MATTERS
AMENDMENT BILL
On 4 August 2005, the Joint Subcommittee of the Joint Programme
Committee decided, in accordance with Joint Rule 216(2), that the
Constitutional Matters Amendment Bill (B 22-2005) should be fasttracked, where necessary dispensing with any relevant House Rule or
Joint Rule and shortening any period within which any step in the
legislative process relating to the Bill has to be completed,
including the submission of the translated version of the Bill as
introduced before the debate in the National Assembly takes place
because the process must be completed in order for the Bill to be
enacted and for the Act to be published in the Government Gazette by
31 August 2005.
There was no debate.
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Decision of the Joint Subcommittee of the Joint Programme Committee
to fast-track the Constitutional Matters Amendment Bill ratified.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON JUSTICE
AND CONSTITUTIONAL DEVELOPMENT ON CONSTITUTIONAL MATTERS
AMENDMENT BILL
There was no debate.
The Chief Whip of the Majority Party moved: That the report be
adopted.
Motion agreed to.
Report accordingly adopted.
CONSTITUTIONAL MATTERS AMENDMENT BILL
(Second Reading debate)
The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT:
Madam Speaker, hon Ministers, Deputy Ministers and hon members,
comrades and friends, ladies and gentlemen, I want to start by
apologising on behalf of Minister Mabandla who is abroad and could
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not be here today to address the House on this Bill. I also want to
commence by thanking in advance all those parties who will be
supporting the passing of this legislation.
The principle objects of the Bill before the House today are
twofold, namely, to amend the Public Funding of Represented
Political Parties Act of 1997, and to amend the Determination of
Delegates (National Council of Provinces) Act of 1998.
The majority of the amendments to these two Acts are necessary as
consequential amendments to address certain matters emanating from
the floor-crossing legislation that was passed by this Parliament in
2002 and 2003. I therefore want to make it clear, upfront, that the
Bill does not deal with the principle of floor-crossing, but merely
seeks to regulate matters in other legislation consequential to such
floor-crossing.
The Portfolio Committee on Justice and Constitutional Development,
in 2003, in its report on the floor-crossing legislation
recommended, amongst others, that the Department of Justice and
Constitutional Development:
Review the laws pertaining to the funding of political parties, in
particular parties represented in a legislature, and take such
steps as may be necessary to ensure that those provisions are
aligned with the changes effected in terms of the above
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legislation, and consider all legislation which may need to be
amended in order to bring it into line with the new laws referred
to in paragraph 1, and make recommendations regarding such changes
as may need to be effected.
As a direct outcome of this injunction of the portfolio committee in
2003, the Constitutional Matters Amendment Bill before the House
today seeks to amend, inter alia, the delegates Act so as to make
provision for the redetermination of certain delegates of a
provincial legislature to the NCOP, which has been reconstituted on
account of changes in party membership and mergers or subdivisions
of parties in that legislature, because of the floor-crossing.
As the amendments to the delegates Act do not affect this House or
its members, I will today concentrate on the amendments to the
funding Act. In terms of section 236 of the Constitution, ``national
legislation must provide for the funding of political parties
participating in national and provincial legislatures on an
equitable and proportional basis’’. The funding Act that was enacted
to give effect to that constitutional requirement, among other
things, established the Represented Political Parties Fund, with a
view to making provision for the funding of political parties
participating in Parliament and provincial legislatures, and it
regulates the allocation of moneys from the fund by the Independent
Electoral Commission to political parties.
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In terms of section 5(2)(a) of the funding Act, allocations from the
fund must be made and paid to each of the political parties
concerned in accordance with the prescribed formula, based in part
on the principles of proportionality and equity. Consequently, if a
political party’s representation in the National Assembly or a
provincial legislature has been affected as a result of floorcrossing, this will of course affect the allocations from the fund.
In terms of the regulations made under section 10 of the funding
Act, the IEC must, within two weeks of the beginning of a financial
year of the fund, announce the total amount of funding available for
allocation. Provision is further made that the allocations from the
fund to be made and paid to each of the political parties concerned
are calculated by allocating 90% of the total amount of funding
proportionately, and 10% of the amount equitably.
The regulations also provide that all allocations each year are paid
in four equal instalments. These instalments are payable in April,
July, October and January of each year. The window for floorcrossing, which is from 1 to 15 September, falls between the date on
which the second instalment has been paid and the date on which the
third instalment is payable.
Consequently, if a political party’s representation in the National
Assembly or a provincial legislature has been affected as a result
of floor-crossing, this will also affect the third and fourth
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instalments to which it is entitled. A need has therefore arisen to
regulate the reallocation of moneys from the fund after the window
period for floor-crossing for that particular year. In order to
address that need, it is necessary to amend the funding Act, and the
regulations made under that Act.
This Bill therefore seeks to amend the funding Act so as to regulate
the repayment of unspent balances of all allocated moneys in terms
of the funding Act, when parties cease to qualify for such
allocations as a result of changes in party membership, mergers or
subdivisions during the window period of floor-crossing, and provide
for the reallocation of moneys in the year in which floor-crossing
takes place where a member of a legislature becomes a member of
another party whilst retaining membership of that legislature, or
where an existing party merges with another party, subdivides into
more than one party, or subdivides and any one subdivision merges
with another party.
The new section 6(a) that the committee has included, that is to be
inserted in the funding Act, regulates the circumstances in which a
political party, after the window for floor-crossing, has to repay
to the IEC the unspent amounts of all moneys that had been allocated
to it in terms of the funding Act.
The main principles contained in that new section can be summarised
as follows: Firstly, if a member of a legislature becomes a member
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of a party other than the party which nominated that person as a
member, the nominating party does not have to repay to the IEC its
unspent balances in respect of the seat held by the member
concerned.
Secondly, a party which immediately prior to the window for floorcrossing qualified for an allocation does not have to repay to the
IEC its unspent balances, if it subdivides into more than one party
or subdivides and any subdivision merges with another party during
the floor-crossing, and any subdivision of the original party
continues to represent that party and the legislature concerned
after the date on which the speaker of a legislature has published a
notice required in terms of item 5(3) of Schedule 6(a) to the
Constitution that reflects the number of seats allocated to that
party in that legislature, and the name of and party represented by
each member, and qualifies for the allocation of moneys from the
fund, whether the subdivision of the original party has changed its
name or not.
Thirdly, a political party which, immediately prior to the window of
floor-crossing, qualified for an allocation must repay to the IEC
its unspent balances if it ceases to qualify for the allocation of
moneys from the fund as a result of its only member or members
changing party membership, a merger with another political party or
subdivision into more than one party.
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The new section 6(a) also places some obligations on the accounting
officer or leader of a political party that has to repay to the IEC
its unspent balances. Provision is further made that an accounting
officer or a leader of a party who fails to comply with these
obligations will be guilty of an offence in certain circumstances.
In order to enable a political party that ceases to qualify for the
allocation of moneys from the fund and that has to repay its unspent
balances to comply with its existing legal and financial
obligations, the IEC has granted the discretion to determine the
amount of any unspent balances that must be repaid.
The regulations made under the funding Act have been amended to
empower the IEC to reallocate 50% of the total amount of funding for
the financial year in which floor-crossing is permitted to the
political parties that, after the date on which the speaker of a
legislature has published the notice in terms of item 5(3) of the
Constitution, qualify for the allocation of moneys from the fund,
and regulate the times and intervals of payment of the
reallocations.
You may well ask: What on earth has he just said? In a nutshell, let
me say this. Basically, what we are saying is: In the year of floorcrossing at provincial and national level, there are two instalments
that have not yet been allocated, and then, if parties change, this
Act will allow those two instalments, for that year only, to be
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reallocated, and in the next year, the IEC will, of course, then
make the allocations in terms of whatever proportions there are.
The second point it deals with is that in certain instances where
parties really cease to exist ... [Interjections.] Yes, like the
National Party, but they will join a decent party now, a bigger
party, so hopefully they will bring all their money with them, and
they won’t have to give it back. [Interjections.] Forget that party
for the moment. The principle is that the unspent balances of
certain parties that cease to exist is taxpayers’ money and must be
given back to the IEC. In the next year, it will then be allocated
downwards.
I have also noted the report of the portfolio committee and will
bring its contents to the attention of the Minister as a matter of
urgency, because they raised a few points that we have to
investigate further.
Lastly, I thank the portfolio committee, especially its chairperson,
Ms Chohan-Khota, and the leaders of the parties in the committee for
a job very well done, and especially for doing it in a very short
space of time as a fast-tracked Bill. May you all do very well
during the floor-crossing, and may this Bill help you to get more
money into your coffers. Thank you very much. [Applause.]
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Ms F I CHOHAN-KHOTA: Thank you, Madam Speaker. Hon members, I’ll try
not to explain as well as the Deputy Minister did, but let me just
begin by saying that because this is called the Constitutional
Matters Amendment Bill, many people have come to me to ask: Do we
need a two-thirds majority to pass this Bill?
The immediate answer is, no, this does not pertain to a
constitutional amendment at all. This does, however, deal with the
consequences of certain constitutional provisions and therefore the
Bill was introduced as a Constitutional Matters Amendment Bill.
In essence, as was explained earlier, the Bill deals with the
consequences of the floor-crossing regime, and amends the Public
Funding of Represented Political Parties Act of 1997, as well as the
Determination of Delegates of the National Council of Provinces Act
of 1998.
Insofar as it pertains to the funding Act, this Bill now obliges the
IEC to reallocate funding to qualified political parties in
recognition of the changes occurring during a floor-crossing period.
The Bill, read with the regulations, requires the IEC to reallocate
50% of the funding available to parties in a floor-crossing year in
a manner that takes cognisance of the changes in party
representation immediately following a floor-crossing period.
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The funding to political parties in October of the relevant year
would have to be reallocated on the basis that those parties that
gained seats would qualify for and be entitled to more money, and
those that lost seats would have their allocations reduced
accordingly.
The formula on which allocations to parties is currently based,
remains completely unchanged. It is possible for many things to
happen during a floor-crossing period - some parties become
stronger, others become weaker, and some vanish completely from
Parliament and the legislatures. Sometimes brand-new parties even
emerge. The Bill takes care of all of these possibilities.
As far as unspent moneys are concerned the Bill has provided for
unspent moneys to be paid back to the IEC under certain
circumstances, but not others. The committees conferring felt that a
principle had to be developed and adhered to under all
circumstances. The principle we devised was that if, after a floorcrossing period, certain parties are no longer represented in the
legislatures, those parties will cease to get funding and must also
repay unspent moneys.
So parties can be disqualified from receiving funding if they merge
into other existing parties, if all their members cross to other
parties, or through subdivisions and mergers. The principle, simply
stated, is this: As long as a party is no longer entitled to funding
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at the level of a legislature or Parliament it has to pay back
unspent moneys.
It is also significant to note that it is the IEC, and not the
political parties themselves, who will determine what the unspent
moneys amount to in each case. In deciding what moneys would have to
be repaid we considered the fact that political parties incur
certain obligations that may extend beyond the floor-crossing
period.
The aim of the legislation is not to create parties that can’t meet
their legal obligations. We therefore provide that political parties
who are no longer represented in Parliament or legislatures after
floor-crossing must submit to the IEC their financial statements, as
well as supporting documents of things like leases, contracts of
employment, and suchlike, which the IEC must take cognisance of
before determining the amount of unspent moneys. Unspent moneys must
be repaid to the IEC and will go into the fund, and be redistributed
amongst the parties that qualify for funding in the following
financial year.
In the report of the committee we point out that unspent moneys are
to be paid back under two further circumstances, which are provided
for currently in the funding Act: Firstly, when a political party
ceases to qualify for allocations of moneys from the fund, that is
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when it loses an election; and secondly, where any or every
legislature or Parliament dissolves.
In our report we suggest that the desirability of aligning matters
related to unspent moneys be investigated, bearing in mind those may
be mutually exclusive circumstances. However, in regard to who
should be responsible for actually paying the unspent moneys the
Act, as it currently stands, is silent.
It is with this in mind that we suggest a closer look at the funding
Act. In amending the funding Act we have inserted a new section
9(a), which makes it an offence for a party’s accounting officer not
to comply with certain financial accountability mechanisms and the
repayment of moneys by a certain period.
While we do not envisage that unspent moneys will mean huge sums of
money being returned to the IEC, the principle adopted in this
legislation, because it deals with public money, is that of
accountability and transparency. Both these issues have to be finetuned in the rest of the Act. We were unfortunately unable to deal
with these matters in the two weeks we had to process this Bill, and
have therefore requested the department to investigate further and
return with proposals after consulting all stakeholders.
Coming now to the Determination of Delegates (National Council of
Provinces) Act, the Constitution, in Part B of Schedule 3, indicates
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the formula that is to be used to determine the number of NCOP
delegates that a party represented in a legislature is entitled to.
The formula to be used to determine the number of special and
permanent delegates is to be found in the delegates Act.
Essentially, the formula in the delegates Act mirrors, as far as
possible, the formula in the Constitution. We have now amended this
to provide for the possibility of the extreme changes that may occur
in legislatures and in Parliament during the floor-crossing window
periods. In this regard, when the formula provided for in the Act
results in more than six permanent delegates, or less than four
special delegates, the deadlock-breaking mechanism was to resort to
the number of votes actually cast for a party during the preceding
election.
During a floor-crossing period, however, brand-new parties may
emerge that have never participated in elections at all. Mindful of
the fact that our system is essentially a PR system, and that votes
are cast for parties and not individual members, in such a case we
provide that a zero or nil vote is recorded for such parties in the
deadlock-breaking mechanism.
At the other extreme is the possibility that two parties who have
contested elections, each one of them recording votes in the
preceding election, may merge in their entirety. In such a case, as
long as no single person remains who is representing such parties,
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and that the merger was not a result of a subdivision and merger,
the combined number of votes cast for each party would be considered
for the purpose of the deadlock-breaking mechanism.
If, however, there remains further deadlocks, ie in the case of two
parties recording exactly the same number of votes at the polls, or
two brand-new parties emerging after the floor-crossing, the Act now
provides that the legislatures determine, in accordance with the
principles of democracy, the question of which party gets the
permanent delegate.
I would like to raise a matter that we have not dealt with in the
report. It seems to me that there is absolutely no reason why the
formula in the Constitution should not be amended to reflect both
these extremes that arise during floor-crossing.
Currently, as it stands, the Constitution does take into account the
one extreme, ie when two parties merge, but it doesn’t take into
account the possibility of brand-new parties emerging during floorcrossing. This is then a matter that the department should also
consider at an appropriate time.
Finally, let me take this opportunity, Madam Speaker, to thank all
the members of the committee, across party lines, for their
frankness and co-operation over the last two weeks. Thanks to the
state law advisers and departmental officials, in particularly, Mr
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Johan Labuschagne, who worked really tirelessly on this Bill and
dealt with me with great patience and compassion. Thank you, Mr
Labuschagne.
I’m told that he is also continuing to try to beat the clock to
ensure that this Bill gets promulgated before 1 September. I do
thank you for your attention. [Applause.]
Mrs S M CAMERER: Madam Speaker, the DA supports the Constitutional
Matters Amendment Bill. However, we find ourselves in the invidious
position of supporting amendments to legislation which we as a party
are now entirely opposed to. In fact, the DA will be introducing a
motion, asking Parliament to review and rescind floor-crossing
legislation.
It is true that the DA has supported the right of public
representatives to change parties on the basis of conscience. In
fact, the DP’s negotiator on these matters at the constitutional
negotiations, Colin Eglin, proposed that this right to cross the
floor be incorporated in the Constitution from the beginning.
However, experience has taught us how inappropriate floor-crossing
has become in our current constitutional dispensation.
Forget principle. In the hands of the ANC majority, floor-crossing
has degenerated into the lowest form of chequebook politics, a legal
form of bribery at the taxpayers’ expense. [Interjections.]
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The ANC is currently driven by lines of dissent: the Mbeki camp
versus the Zuma camp. Which one are you in, hon Minister?
[Interjections.] Cosatu versus Minister Trevor Manuel’s economic
conservatives. The centralists versus the new UDF.
In order to shore up its faltering unity, the ANC will no doubt
attempt to use the upcoming floor-crossing period, which starts next
week, to cannibalise several smaller opposition parties.
According to the highest decision-making body of the DA, its federal
council, at our last meeting in June we accepted the following
motion: “In light of the perversion and abuse by the ANC of floorcrossing, chiefly through . . . ”
Mr P A C HENDRICKSE: Madam Speaker, I rise on a point of order.
The SPEAKER: Order, hon member. Yes, hon member?
Mr P A C HENDRICKSE: Madam Speaker, if I understood the Deputy
Minister correctly, this Bill does not deal with the principle of
floor-crossing, and it appears as if the person at the podium is now
addressing the principle.
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The SPEAKER: That is true actually, hon member. It is not about the
principle of floor-crossing; it’s about issues surrounding it.
[Interjections.]
Mrs S M CAMERER: Exactly. Thank you, Madam Speaker.
I’ve noticed that a number of government members have been raising
issues around floor-crossing during the proceedings today.
Anyway, we accept the motion, but because of the revulsion it
arouses among our voters who believe their mandate has been
betrayed, the party has revisited its position and now opposes
floor-crossing.
Within the provisions of the law, the DA will penalise any of its
own public representatives who cross the floor to another party in
defiance of the mandate of the voters. The DA, however, will accept
representatives of other parties into its ranks who join for reasons
of personal conscience and who are committed to our principles and
policies. [Interjections.] However, to minimise opportunistic
enticements, no person joining the DA can be offered or assume a
post within the legislature or council which attracts more
remuneration than he or she was earning before joining the party,
for a period of two years. [Interjections.]
The DA also believes that the task of South Africa’s only remaining
national opposition is to hold the line against the ANC. Whereas the
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ANC uses floor-crossing as a way of expanding its power, opposition
parties must use it as a way to make sure that ordinary people have
a say in government. The DA will welcome those public
representatives who choose to join our ranks out of a sincere
commitment to strengthening the opposition and upholding our
democratic principles. [Interjections.]
This Bill has two main purposes. In the first instance, it seeks to
clarify the rules pertaining to the allocation of funds to political
parties in terms of the Public Funding of Represented Political
Parties Act. The right of public representatives to cross the floor
was introduced after the acceptance of the funding Act, which
necessitates this amendment. The amendment specifically provides for
the allocation of funding after the crossovers.
The basic principles upon which the amendments rest include the
principle that a recalculation is made of the funding allocation to
parties as if an election had taken place, and that the unspent
balances, as defined in the Bill, paid over to political parties,
are required to be paid back to the fund if the relevant party
ceases to exist and therefore ceases to be entitled to the funding.
So, in the event of a party ceasing to be represented as a result of
the crossing of all its members because of a merger or subdivision,
unspent balances do have to be repaid.
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A party does not cease to exist if one or more members cross, or
there is a subdivision, or there is a name change, but the party
concerned – or parties in the event of a subdivision – continues to
be represented. Criminal sanctions are introduced for failing to
comply.
In the second instance, the Bill attends, as the Deputy Minister
indicated, to unfinished business. After the debacle of the original
floor-crossing legislation, as it affected national and provincial
government, being found to be procedurally defective and invalid by
the Constitutional Court in October 2002, the matter was rectified
by the passing of the Constitution of the Republic of South Africa
Amendment Act of 2003, the principal object of which was to re-enact
floor-crossing legislation in a procedurally correct manner.
However, the amendments to the Determination of Delegates (National
Council of Provinces) Act of 1998 were not re-enacted. Accordingly,
this Act is now amended to take care of changes in the composition
of legislatures as a result of crossings. Once again, the point of
departure is that a new calculation is made as if an election had
taken place.
The only aspect that this amendment affects are the rare cases in
which it is necessary to refer back to the votes obtained by a party
in order to allocate a delegate to one or more parties who tie on a
fraction. Also, the Bill provides that in the event of a new
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political party coming into existence or in the event of a
subdivision – and, consequently, no previous election participation
– the new party will be regarded as having obtained no votes in the
previous election. This was the DA’s proposal, which was accepted by
the committee.
The committee, as has been indicated by our chair, has raised one or
two further points in a report to the House and has recommended that
the Minister for Justice and Constitutional Development look into
them for possible further action.
While this legislation may now more or less be complete, the whole
floor-crossing system as it is now practised remains as odious as
ever. The DA can only call on genuine opposition MPs, marooned in
disintegrating parties or movements as a result of the ANC’s
depredations, to join with us during the window period to honour the
mandate of opposition voters in South Africa. The DA looks forward
to the forthcoming local government elections, which we believe will
considerably strengthen our political position. Thank you.
[Applause.]
Mr L K JOUBERT: Chairperson, hon members, as pointed out by previous
speakers, the need for these amendments emanated from floor-crossing
legislation that has been adopted since 2002. That legislation is
now part of our positive public law and, as was also correctly
pointed out, is not part of this debate. However, the parliamentary
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record will show that the IFP voted against that particular
legislation.
As far as the present amendments are concerned, it is conceded that
they are necessary in view of the existing legislation, and we will
therefore support this Bill in so far as it addresses a void created
by the previous legislation.
However, apart from the merits or demerits of this Bill, what is
worrying is that although we had two to three years to address this
matter and make the necessary provisions timeously, this matter only
became urgent as the date for the forthcoming window period came
nearer, with the result that the Bill had to be fast-tracked in the
past couple of weeks to have it in the statutes by 1 September 2005.
I have no doubt that we will be meeting this deadline, but my
question is: Do we have our priorities right? Here we gave priority
to a matter that basically only concerns the financial interests of
political parties. We gave it such a high priority that it was fasttracked and joint sittings of the portfolio committee and the select
committee of Justice and Constitutional Affairs were held.
Do we have our priorities right if we fast-track legislation that
concerns us as political parties, while there are more pressing
matters concerning the public at large that remain under the line?
If a deadline is our criterium for fast-tracking legislation, should
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we not have deadlines for all the important matters before such
matters become urgent?
We call this the People’s Parliament and we talk about taking
Parliament to the people. We should therefore give priority to
matters that concern the people directly. I thank you. [Applause.]
Mr G T MADIKIZA: Chairperson, hon members, the Bill before us is a
continuation of a legislative process which, in our opinion,
disgraces this House and undermines democracy. Voters entrust
parliamentary and legislative seats to parties and not individuals,
yet the two biggest parties in this House have seen fit, for reasons
of political expediency, to amend the Constitution in order to
introduce into our body politic unnecessary instability.
It is common knowledge that floor-crossing always tends to favour
the ruling party, and so it greedily pursues those seats which the
voters did not entrust to them. We have repeatedly said to the
ruling party that floor-crossing in a proportional representation
electoral system is a betrayal of the voters.
In a constituency-based system, floor-crossing could be allowed
because then the voters could be consulted in the by-elections about
individual public representatives’ decisions to defect. It is the
height of irony that whilst the majority of political parties
support a constituency-based electoral system, the ANC opposes it.
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The Bill before us, in all its convoluted glory, is a legalistic tap
dance to accommodate the effects of floor-crossing. In itself it is
proof of the unseemly eagerness with which floor-crossing was
introduced without considering all the consequences.
We will have nothing to do with anything that has to do with floorcrossing. The UDM does not support this Bill. Thank you. [Applause.]
Ms C B JOHNSON: Chairperson, hon members, the Constitutional Matters
Amendment Bill is a Bill which has been drafted specifically to
provide for certain inevitable consequences of floor-crossing. It’s
a technical Bill.
The Bill’s primary aim is to regulate the funding and the financial
implications of floor-crossing both during and after the window
period is opened. Also, if one bears in mind that all the funds from
the IEC to political parties are, after all, public funds and
taxpayers’ money, we are of the view that the Bill makes adequate
provision for proper transparency and accountability in the way that
these funds are managed. In view thereof, we support the Bill.
May I respond to what the hon Camerer said? I can’t believe that the
DA can be against a principle when it doesn’t suit them, but for the
very same principle when it does suit them. I find that unprincipled
in the extreme.
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Then, hon Camerer, I am glad that you brought up chequebook
politics, because I don’t know if you are aware that the DA in the
Western Cape is currently offering persons MEC positions as well as
the premiership of the Western Cape in order to lure them to cross
the floor. [Interjections.]
So, Mrs Camerer, you are either against something or you are for
something. You cannot be both. You cannot have your cake and eat it.
So, let me explain this to you in terms that you might understand.
Political principles are not Italian shoes. You cannot have a
different pair for each day of the week. [Interjections.]
[Applause.]
Mr S N SWART: Chairperson, the ACDP is on record as being opposed to
floor-crossing. When the legislation was considered in 2002, I
pointed out the impact that floor-crossing and reduced party funding
would have on existing legal obligations of a party, such as
employment and rental contracts. Whilst we thus remain firmly
opposed to floor-crossing, we believe that the inevitable
consequences of floor-crossing, as undesirable as they may be, must
be properly regulated – particularly as we are dealing here with
public funds allocated by the Independent Electoral Commission, and
for that reason we will be supporting this Bill.
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If a party ceases to qualify for funds, as has been pointed out, it
must repay unspent balances, following an audit procedure, as set
out in the amending legislation. The IEC will, however, have
discretion to consider standing legal obligations, such as rental
and employment contracts in determining the repayment of such
amounts.
Additionally, should a provincial legislature be reconstituted due
to floor-crossing, the provincial delegates to the NCOP may have to
be redetermined. This, again, is a consequence that must be properly
regulated, particularly regarding deadlock-breaking mechanisms.
Where a new party competes with an existing party on the basis of
votes in the allocation of special or permanent delegates, the new
party must, of course, be allocated zero votes, and this is
contained in the Bill. This is eminently reasonable, as this new
party would not have competed in the previous election.
Thus, the ACDP will support this amending Bill, but as the threshold
for the window period opens, I would just like to say: Don’t call
us; we’ll call you. Thank you very much. [Interjections.]
Dr C P MULDER: Mnr die Voorsitter, vandag se debat het weer eens
bewys waarom dit soos ’n paal bo water staan dat die DA sleg is vir
Suid-Afrika. Die DA is die kampioen van politieke opportunisme. Wat
is die feite? Die aanvanklike Grondwet het nie oorlopery in SuidAfrika toegelaat nie, want dit maak nie sin by ’n proporsionele
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stelsel nie. Wie kom na vore en vra dat die Grondwet gewysig moet
word om oorlopery moontlik te maak? Die DA. Hulle vra dat die ANC
die Grondwet moet wysig. Die DA stem toe vir die wet wat oorlopery
moontlik maak. Toe hulle egter agterkom dat die publiek daarvoor
gril, is hulle skielik daarteen. Dit pas die DA en skielik is hulle
toe ook teen oorlopery gekant.
Vandag in hierdie Raad stem die DA weer vir die wet, want dit pas
hulle om dit vandag te steun. Hulle steun die wet vandag, maar in
hulle toespraak sê hulle hul is eintlik teen oorlopery. Die juweel
van die dag is egter die feit dat hulle tog almal uitnooi om by
hulle aan te sluit.
Dit is ongelooflik! G’n wonder die publiek daar buite gril vir
politici en vir politieke partye nie. Dit is eintlik een party se
verantwoordelikheid; dit is die DA se verantwoordelikheid. Julle
maak ons almal sleg. Hou op daarmee asseblief. [Tussenwerpsels.]
[Applous.]
Die feit van die saak is die volgende: ten grondslap aan die
demokrasie lê die Grondwet en grondwetlike demokrasie - die
verteenwoordiging daarvan - in die hart van ons stelsel. Kiesers
stem vir mense wat hulle verteenwoordig en hul stemme word op
daardie manier omgesit in verteenwoordiging, maar dan word daar ook
fondse gegee. Daardie kiesers wat gestem het se
23 AUGUST 2005
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belastingbetalersgeld word indirek gekanaliseer om daardie ideale
voort te sit.
Die probleem met hierdie wet is dat dit nie ’n goeie wet is nie,
want dit is ’n vooruitloping van daardie verkeerde beginsel. Nie
alleen word daardie kiesers van hulle stemme en verteenwoordiging
ontneem nie, maar nou word ook daardie geld wat eintlik saam met
hulle gedagte moes gegaan het, hulle ook ontneem.
Nasionale Party-mense wat vir die NNP gestem het se stemme is hulle
reeds ontneem. Nou word daardie belastingbetalersgeld hulle ook
ontneem, want dit gaan na die ANC. Julle is besig om op ’n verkeerde
beginsel ’n vrot wet deur hierdie Parlement te voer. Ek dank u.
(Translation of Afrikaans speech follows.)
[Dr C P MULDER: Hon Chairperson, today’s debate has once again
proved why it is so evident that the DA is bad for South Africa. The
DA is the champion of political opportunism. What are the facts? The
initial Constitution did not allow for floor-crossing in South
Africa, because it does not make sense in a proportional system. Who
came forward and asked that the Constitution be amended to allow for
floor-crossing? The DA. They asked the ANC to amend the
Constitution. The DA then voted for the law that makes provision for
floor-crossing. However, when they realised that it was irking the
public they were suddenly against it. This suited the DA and
suddenly they were also opposed to floor-crossing.
23 AUGUST 2005
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Today in this House the DA is once again voting for this law,
because it suits them to support it today. They are supporting this
law today, but in their speech they say that they are actually
opposed to floor-crossing. But the best part is the fact that they
are still inviting everyone to join them.
This is unbelievable! No wonder the public out there is irked by
politicians and political parties. It is actually the doing of one
party; it is the DA’s fault. You are making us all look bad. Please
stop that. [Interjections.] [Applause.]
The fact of the matter is the following: The Constitution and
constitutional democracy are at the heart of democracy – the
representation of it at the heart of our system. The electorate
votes for people who represent them and in this way their votes are
converted into representation, but then funds are also given. The
taxpayers’ money of voters is indirectly channelled to pursue those
ideals.
The problem with this law is that it is not a very good one, because
it is in anticipation of that incorrect principle. Not only are
those voters being deprived of their votes and representation, but
now they are also being deprived of that money that was actually
supposed to accompany their ideals.
23 AUGUST 2005
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National Party supporters who voted for the NNP have already been
deprived of their votes. Now they are also being deprived of that
taxpayers’ money, because it is going to the ANC. You are piloting a
rotten law through this Parliament, based on an incorrect principle.
I thank you.]
Mrs S A SEATON: Could it be noted that there is no isiZulu
interpretation?
The HOUSE CHAIRPERSON (Mr G Q M Doidge): We’ll take care of that Mrs
Seaton. We will ask the Table to send a message up to them.
Mr I S MFUNDISI: Chairperson and hon members, the Bill we discuss
today seeks to shore up section 6 of the Constitution of the
Republic of South Africa Amendment Act of 2003 by managing the
retention of membership of the National Assembly or provincial
legislature after a change of party membership.
We supported the Bill at the time, and we will do so even today, as
consideration is being given to the amendment of the Public Funding
of Represented Political Parties Act of 1997, because it has become
necessary to ensure that whoever leaves his or her party to go to
another party should have the necessary financial support from the
day he or she changes party membership.
23 AUGUST 2005
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We in the UCDP have always maintained that although it is immoral to
change party membership midstream, there is nothing to be done if
members are not happy. All we are against, and will continue to view
with contempt, is the overt recruitment of members of one party by
another. We maintain that members should uphold the spirit and the
letter of the Act, which stipulates that people may leave parties
voluntarily without being coerced, recruited and promised heaven and
earth.
We lament that there are spineless and intolerant rolling stones in
our midst who masquerade as representatives of the people, yet are
only there to satisfy their personal political lust. One wonders
where such people will be during the next floor-crossing period
before the end of the five-year term of this Parliament.
The UCDP believes that all we need are men and women of substance
who would not be blown over by just any wind. The unfortunate part
of the law is that it is fertile ground for the proliferation of
insignificant parties that then also subdivide in amoeba-like
fashion, or strengthen the ruling ANC through the backdoor.
Notwithstanding all that, as we said, the UCDP will support the
Bill.
Mr N T GODI: Chairperson, Comrade Deputy Minister, comrades and hon
members, I wish to state from the onset that the PAC supports this
23 AUGUST 2005
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amending Bill. The amendments to be effected do not seek to
introduce anything substantively outside the current framework of
our parliamentary and political landscape, but rather to adjust and
better regulate certain practices and aspects currently in
operation.
Although, when introduced, the PAC vehemently opposed what is
generally known as the floor-crossing legislation, we do take
cognisance of the fact that it is now law and operational. We are
not going to act like “bittereinders”. We are a revolutionary and
forward-looking party. I am not going to waste time trying to kill a
dead horse, because I do not think anything substantive is being
amended. Suffice it to say, for example on the Determination of
Delegates of the NCOP Act, that it is not only logical, but long
overdue, that these amendments should be effected, just as it has
been effected in the local municipalities where after floor-crossing
there is a redetermination in terms of delegates from local
municipalities to district levels.
I wish to state, Comrade Deputy Minister, that as far as the PAC is
concerned, floor-crossing is not a threat, but more of an
opportunity. We have declared that the PAC is a home for all those
who believe that they still want to contribute positively to the
development of our country and people. I thank you. [Interjections.]
[Applause.]
23 AUGUST 2005
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Ms S RAJBALLY: Chairperson, please excuse me, I have very bad flu.
The MF returns to the podium on the matter of floor-crossing, which
we are opposed to. While we have no problem with parties merging and
subdividing, we find it unjust and immoral for a member to cross the
floor in his or her independent capacity.
We honour and cherish the people we represent, and we acknowledge
our responsibility to these people who voted for us in confidence.
When voting for us they trusted that we would be honourable leaders
and bold representatives of their needs, wants and existence. We are
here because of the faith our constituencies have in us. When we
cross the floor we fail our people.
We are a democracy, a government for the people by the people. We
need to remember that the people hold our seat that we represent,
and that they have voted for the party, and they have chosen to
elect us as the people best suited to represent them.
In terms of the amendments regarding funds we have assessed that it
has been compiled fairly and equitably. Amendments regarding the
reallocation of funds to political parties whose membership has been
affected by floor-crossing have been given an appropriate formula to
ensure the equitable and fair distribution of funds.
23 AUGUST 2005
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Provisions made for the reconstitution of provincial delegations to
the NCOP when floor-crossing affects party membership in that House
also seem apt.
We once again appeal to those intending to cross the floor in
September 2005: Remember the people, don’t fail them. Our nation is
a family, not a division of individualists.
The MF supports the Constitutional Matters Amendment Bill.
[Applause.]
Mr G SOLOMON: Chairperson, this piece of legislation seems to
irritate a number of political parties here. It might be because of
the legislation or maybe because of floor-crossing and the impact it
will have on their parties. Maybe we should talk about floorcrossing and remind this House and the members who are irritated by
this piece of legislation about the rationale behind floor-crossing
and the principles in the Constitution which gave rise to floorcrossing. In any case, this piece of legislation before us is a very
important piece of legislation, which is part of a series of pieces
of legislation in the process of the democratisation of our
electoral system, including floor-crossing.
There is no doubt that this legislation, together with the electoral
principle of proportional representation and an anti-defection
clause - section 43(b) of the Interim Constitution of 1993 – was
23 AUGUST 2005
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necessary for the political stability that was required for
institutional and social transformation in South Africa during a
very critical period in our democracy. If we were, for example, to
allow free floor-crossing indiscriminately, we would not have this
political stability which we need in order to bring about those
changes in South Africa.
Whilst the anti-defection clause of the Interim Constitution was
strongly supported as an intricate component of the party list
system - the DA, at that time the DP, strongly supported this system
on which the 1994 election was based - it became one of the most
contested elements in our system of representative democracy. And we
heard it here today. It was heavily criticised, and correctly so,
for being undemocratic and that it allegedly stifled freedom of
speech and association and, in the interests of democracy, the
government decided to change this.
Whilst democracy demands that the process must be allowed to develop
without undue interference, the challenge that faced the government
was to find a way of allowing crossing of the floor within our party
list system. The most important factor we need to take into
consideration, and I quote our previous chairperson – the present
Deputy Minister for Justice and Constitutional Development, the hon
Mr Johnny de Lange, during the heat of the debate in 2002 – as
saying: “We need to take into consideration the possible impact the
legislation may have on the stability of all three tiers of
23 AUGUST 2005
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government.” We were also alerted to the dangers of political
corruption, intimidation, enticement and opportunism by various
scholars and legal teachers at universities.
The introduction of the concept of floor-crossing into our electoral
system has taken a number of forms in the heat of the debate. There
was complete opposition from the IFP - and we appreciate and respect
them, they still have the same position. The UDM also have the same
position as do the ACDP. There was support for complete and
unimpeded freedom to cross the floor from Mr Collin Eglin, at the
time of the then DP. The FF Plus might have changed, but not the DA.
I am surprised by what Mrs Camerer said today.
The ANC’s position is, however, quite clearly based on the principle
of the South African constitutional order, namely the party list
system of proportional representation, political accountability to
the electorate through the nomination of parties and the value of a
multi-party system that encourages the representation of all
significant voices in our society. All these must be underpinned by
the critical need for political stability in our system.
In view of these principles, the ANC believes that it is in the
interests of the democratic process to accommodate the differences
of opinion that might arise in parties. If during the lifespan of a
party these differences in principle or policy become unmanageable
and threaten the stability of the party, it would be undemocratic to
23 AUGUST 2005
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allow such representatives to be booted out of parties and out of
the legislature. We therefore should allow defections, subdivisions
and mergers.
A critical question, however, is: When are such moves worthy of
constitutional protection? The ANC was of the opinion that a
threshold of 10% is reasonable to ensure there is sufficient
consensus of opinion where changes in political affiliation are
contemplated. To avoid constant reconfiguration of the
representational profile of parties in legislatures, only two 15-day
window opportunities to cross the floor should be allowed in
September of the second and fourth year respectively of the fiveyear term of office.
We believe that the threshold of 10% and the limitation to the
windows of opportunity imposed on defections, mergers and
subdivisions are in the interest of political stability and
integrity while allowing changes in political affiliation without
compromising the principle of proportional representation.
Today, however, strange things are happening on the eve of the
cross-over. Different parties respond in different ways, and I will
quote the positions of some of them. The UDM says: “You walk - take
your pick - I fire, why shoot? The DA says: “We did not do so well
the first time, but this time we have a dream team and a ghost
cabinet; we want to become Premier, particularly of the Western
23 AUGUST 2005
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Cape, or an MEC; walk to the democratic circus.” The ANC says: “We
are the people’s party; we are popular, particularly amongst the
working class, the poor and the marginalised; we have a hardworking
team clearing up the mess caused by others; we are making great
headway despite many challenges; we are quite full presently, but
there is always space for more. You know that we believe that South
Africa belongs to all who live in it, both black and white. So you
will be welcome.”
To come back to the Bill in front of us, we believe that this finely
balanced mechanism to allow floor-crossing under controlled
conditions, together with today’s amendments unanimously agreed upon
in the portfolio committee, including by the DA, will facilitate the
allocation of the third instalment of funds from the IEC and the
allocation of representation in the NCOP in a manner consistent with
our democratic principles.
In conclusion, to those who will receive a bigger third and fourth
instalment from the IEC and increased representation in the NCOP by
the end of September, good luck. For the rest, there will be another
opportunity in September 2007. Thank you, Chairperson. [Applause.]
The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT:
Chairperson, I thought today was going to be a nice calm day, no
problems and that everyone was going to be happy. But, it does not
work like that in this Parliament.
23 AUGUST 2005
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I am going to start off by congratulating Dr Mulder, because Dr
Mulder will remember that it was he who came to the committee in
2003 and said look, there are a whole lot of consequential issues
that you are not addressing here, please address them. So, we passed
a resolution to accommodate Dr Mulder. We went back to see how we
could fix this thing up. We fixed it up, but when we came back he
said he didn’t like it. You just can’t please everyone all the time.
Dr Mulder, this one is yours, congratulations!
To the member from the UDM, I imagine that you are not one of those
members who has been suspended, because you spoke with so much
enthusiasm and you were so strong on principle that I couldn’t
understand what you were saying. But I could see you felt strongly
about it. So you might still be one of them, if you have not been
suspended, obviously. [Laughter.]
I want to thank the department, particularly Johan Labuschagne who
has done a great job and everyone else who has been involved. And I
want to thank the parties for processing this very quickly.
You know, Sheila, I love you so dearly. You are such a wonderful
person. You are the biggest bag of contradictions that one can
imagine. [Laughter.] You come and tell us about principles. I looked
in the Oxford Dictionary and found that the word ``principle’’ is
defined as a fundamental truth or in law as the basis for reasoning
23 AUGUST 2005
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or action, or as a fundamental source. In other words, it is
something fixed and immutable. It’s something that you don’t just
change as you wake up in the morning and so on.
Now, I’ll tell you what isn’t a principle. It can’t be a principle
when your party is one of the strongest initiators of floorcrossing. You know what happened, you guys got into a marriage. It
was a disaster and you pushed us in all kinds of ways to go for
floor-crossing. And we went that route to try and solve the problem.
Then you, hon Mrs Camerer, were one of the members that took the
opportunity to walk from one party to the other. Then you come here
today . . . [Interjections.]
Mrs S M CAMERER: Chair, on a point of order: Is the Minister not
refusing to talk about the Bill but instead talking ``chequebook’’
politics here?
The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Now,
you are making confessions. Did they buy you? Oh, that is even
worse. Did they buy you?
Mrs S M CAMERER: They wanted to buy me. [Laughter.]
The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: I
could forgive you for all those things, but you can’t come here
today and say it’s a principle of the party to oppose floor-crossing
23 AUGUST 2005
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but you are going to accept anyone who comes to you. I mean that
can’t be a principle. That is opportunism. [Laughter.] And it’s
opportunism of the worst kind. I’ll tell you why, because you stand
on a platform and say we have principles. And when we ask you what
principles, you say you don’t like floor-crossing and that if a
member crosses the floor in your party you are going to penalise
that member, you are going to hammer them, but anyone who wants to
come and join you must please come and join you. That is not a
principle.
So, your whole confused logic, I think, has made it quite fun for
this debate because it has exposed a whole lot of stuff. And what I
want to say to you is that if you want to cross, Mrs Camerer, we
will talk, without a ``chequebook’’. You have made a habit of these
things, so we can keep letting you walk across this room.
[Laughter.]
So, the issue of floor-crossing you are opposing now is definitely
not a principle, it’s clearly very opportunistic and we should be
careful about trying to sell it to people because people are not
fools. I mean anyone will know that if you say you are against
anyone crossing the floor and then you accept people, they know that
is opportunism. It’s nothing else.
For example, people know that you guys didn’t do very well in the
last floor-crossing. So, what is it that the party can do? They are
23 AUGUST 2005
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scared about the next floor-crossing, what they then do as a
principle is to oppose it and try and dress it up as principle. It
is not! It’s not a principle! It never has been a principle! And in
the case of this particular party and the way they are dealing with
it, it could not be that. But what it does do is create a lot of fun
and a lot of excitement in the House.
I want to assure the hon Joubert, as well. I agree with the point
made about fast-tracking. We should be very careful in this House
not just to fast-track issues, particularly if they affect political
parties. But I can assure you in terms of this legislation that
nothing was set aside, nothing was put aside to let it pass through
on this occasion. So, you do not have to worry about that.
Lastly, I think there are still some outstanding issues that need to
be dealt with. Some of them have been raised in the resolution, some
in the debate of the chairperson, some by one or two other persons.
Again, can I just say thank you very much to all of you. And again,
make use of the floor-crossing. You may not be here afterwards. So,
don’t stand on your principles because you may become very, very
small in the process.
Thank you very much, Chairperson. [Applause.]
Debate concluded.
23 AUGUST 2005
PAGE: 88 of 644
Question put: That the Bill be read a second time.
Division demanded.
The House divided:
AYES - 217: Abram, S; Anthony, T G; Arendse, J D; Asiya, S E;
Balfour, B M N; Baloyi, M R; Batyi, F; Beukman, F; Bhamjee, Y S;
Biyela, B P; Bloem, D V; Blose, H M; Booi, M S; Botha, N G W;
Burgess, C V; Buthelezi, M G; Cachalia, I M; Camerer, S M; Chang,
E S; Chauke, H P; Chikunga, L S; Chohan-Khota, F I; Cronin, J P;
Cupido, H B; Davidson, I O; Davies, R H; De Lange, J H; Dhlamini,
B W; Diale, L N; Didiza, A T; Dlali, D M; Dodovu, T S; Dreyer, A
M; du Toit, D C; Farrow, S B; Fihla, N B; Fraser-Moleketi, G J;
Frolick, C T; Fubbs , J L; Gaum, A H; Gcwabaza, N E ; George, M E;
Gerber, P A; Gibson, D H M; Gigaba, K M N; Gillwald, C E ; Godi, N
T; Gogotya, N J; Gololo, C L; Green, L M; Greyling, C H F; Gumede,
D M ; Gxowa, N B; Hajaig, F; Hanekom, D A; Hendrickse, P; Hogan, B
A; Huang, S; Jacobus, L ; Johnson, C B; Johnson, M; Jordan, Z P;
Joubert, L K; Kalako, M U; Kalyan, S V; Kasienyane, O R; Kati, Z
J; Kekana, C D; Khoarai, L P; Kholwane, S E; Khumalo, K M; Khunou,
N P; Kohler-Barnard, D; Komphela, B M; Kondlo, N C; Koornhof, G W;
Labuschagne, L B; Landers, L T; Likotsi, M T; Lishivha, T E; Louw,
J T; Louw, S K; Lowe, C M; Lucas, E J; Ludwabe, C I; Luthuli, A N;
Maake, J J; Maduma , L D; Magau, K R; Mahlangu-Nkabinde, G L;
Mahlawe, N M; Mahomed, F; Mahote, S; Maja, S J; Makasi, X C;
23 AUGUST 2005
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Makgate, M W; Maloney, L; Maloyi, P D N; Maluleka, H P; Maluleke,
D K; Mars, I; Martins, B A D; Masango, S J; Mashangoane, P R;
Mashile, B L; Masutha, T M; Mathibela, N F; Matsepe-Casaburri, I
F; Maunye, M M; Mayatula, S M; Mbombo, N D; Mdladlana, M M S;
Mdlalose, M M; Mfundisi, IS; Mgabadeli, H C; Mkhize, Z S;
Mlangeni, A; Mnguni, B A; Mnyandu, B J; Modisenyane, L J;
Mofokeng, T R; Mogale, O M; Mohamed, I J; Mokoto, N R; Molefe, C
T; Moloto, K A; Monareng, O E; Montsitsi, S D; Moonsamy, K;
Morobi, D M; Morutoa, M R; Morwamoche, K W; Mosala, B G; Moss, M
I; Mpontshane, A M; Mthembu, B; Mthethwa, E N; Ndou, R S; Ndzanga,
R A; Nel, A C; Nene, N M; Newhoudt-Druchen, W S; Ngaleka, E;
Ngcobo, B T; Ngcobo, E N N; Ngele, N J; Ngema, M V; Nhlengethwa, D
G; Njobe, M A A; Nogumla, R Z; Nonkonyana, M; Ntuli, B M; Ntuli, M
M; Ntuli, R S; Ntuli, S B; Nxumalo, S N ; Oliphant, G G; Pahad, E
G; Phala, M J; Pieterse, R D; Pule, B E ; Rabie, P J; Rajbally, S;
Ramakaba-Lesiea, M M; Ramgobin, M; Ramodibe, D M; Ramotsamai, C P
M; Ramphele, T D H; Rasmeni, S M; Reid, L R R; Roopnarain, U;
Rwexana, S P; Saloojee, E; Sayedali-Shah, M R; Schmidt, H C;
Schneemann, G D; Schoeman, E A; Seaton, S A; Sefularo, M; Selfe,
J; Semple, J A; September , C C; Seremane, W J; Sibanyoni, J B;
Sibuyana, M W; Sigcau, Sylvia N; Sithole, D J; Skosana, M B;
Smith, V G; Solomon, G; Sonto, M R; Steyn, A C; Surty, M E; Swart,
P S; Swart, S N; Thabethe, E; Tolo, L J; Tsenoli, S L; Tshivhase,
T J; Tshwete, P; Turok, B; Vadi, I; Van den Heever, R P Z; Van der
Walt, D; Van Dyk, S M; Van Wyk, A; Vezi, T E; Vos, S C; Vundisa, S
23 AUGUST 2005
PAGE: 90 of 644
S; Waters, M; Weber, H; Woods, G G; Zikalala, C N Z; Zille, H;
Zita, L; Zulu, B Z ; Zulu, N E.
NOES - 7: Groenewald, P J; Madikiza, G T; Mulder, C P; Mulder, P W
A; Nkabinde, N C; Pheko, S E M; Spies, W D;
ABSTAIN - 1: Greyling, L W.
Question agreed to.
Bill accordingly read a second time.
CONSIDERATION OF REPORT OF PARLIAMENTARY DELEGATION TO 49th SESSION
OF UN COMMISSION ON THE STATUS OF WOMEN (BEIJING +10 CONFERENCE)
The DEPUTY SPEAKER: Hon Chairperson, hon members, ladies and
gentlemen, the Inter-Parliamentary Union affirms:
The concept of democracy will only assume true and dynamic
significance when political policies and national legislation are
decided upon jointly by men and women, with equitable regard for
the interests and aptitudes of both halves of the population.
In September 1995, South Africa participated in the United Nations’
Fourth World Conference on Women, which was held in Beijing, China.
23 AUGUST 2005
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At this conference, our government committed itself to the Beijing
Platform for Action.
The 49th session of the United Nations’ Commission on the Status of
Women, which was held in New York from 28 February to 11 March 2005,
provided an opportunity to review progress made towards gender
equality since the Fourth World Conference on Women held in 1995.
The primary objective of the session was to reiterate, renew and
enhance the Beijing commitments. As Parliament, we have a particular
role to play with regard to overseeing the implementation of the
Beijing Platform for Action. One of the primary areas of work of the
Joint Monitoring Committee on the Improvement of Quality of Life and
Status of Women is to monitor and evaluate progress made in relation
to enhancing the quality of women’s lives in South Africa, with
specific reference to the government’s commitment to the Beijing’s
Platform for Action, the Convention on the Elimination of All Forms
of Discrimination Against Women, Cedaw, and any other specific
international instruments.
The programme for the 49th session of the Commission on the Status
of Women was structured around the following thematic areas:
Innovations in institutional arrangements for promoting gender
equality at national level; review of the implementation of the
Beijing Platform for Action and the outcome documents of the special
sessions of the General Assembly; current challenges and forward-
23 AUGUST 2005
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looking strategies for the advancement and empowerment of women and
girls; observance of Women’s Day; remaining challenges in relation
to statistics and indicators; building on the discussions at the
high-level round table organised during the 48th session of the
commission last year; available data from The World’s Women: Trends
and Statistics, 2005, and the world survey on the role of women in
development; future perspectives on the promotion of gender equality
through the eyes of young men and women; and the role of regional
and intergovernmental organisations in promoting gender equality.
In addition to the main programme outlined above, the African Union
organised a panel discussion on monitoring gender equality
commitments.
The Inter-Parliamentary Union also organised a session to explore
the role of parliaments in giving effect to the promotion of gender
equity. Various non-governmental organisations also organised a
series of side events, which ranged in thematic focus. This included
sessions on violence against women; critics of Beijing +10; women in
armed conflict; the economic empowerment of women; women and the
environment; the trafficking of women and girls; women with
disabilities, and widows.
Governments reaffirmed their commitment to the implementation of the
Beijing Declaration and Platform for Action and the outcome document
of the 23rd Special Session of the General Assembly in 2000.
23 AUGUST 2005
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The declaration emphasises that the full and effective
implementation of the Beijing Declaration and the Beijing Platform
for Action are essential in achieving the internationally agreed
upon development goals, including the millennium development goals,
and highlights the need to ensure a gender perspective in the highlevel plenary meeting on the review of the millennium declaration.
It calls upon the United Nation systems, international and regional
organisations, civil society, women and men to commit themselves and
intensify contributions to the implementation of the Beijing
Declaration and the Beijing Platform for Action, and the outcome
document of the 23rd Special Session of the General Assembly. The
report we are tabling here today should enable them to chart a
course of action for acting upon its recommendations.
One of the mechanisms suggested is that the report be referred to
the relevant committees for discussion, including recommendations on
taking the issues forward. It is further suggested that a number of
debates be held in both Houses on the content area above. For
example, in a week’s time, we will be hosting a Women’s Parliament
over two days, which will evaluate and discuss the contents of the
Beijing +10 report in depth.
We expect members of Parliament to be there on 30 and 31 August when
we celebrate the Women’s Parliament. We have involved provinces.
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Each province will be sending 5 delegates; one of the delegates will
be a girl-child, so that they are here to chart their future.
[Applause.]
Most of the members of Parliament who formed part of South Africa’s
national delegation to the 49th session of the United Nations - the
members of the South African parliamentary delegation include
myself, the hon Nhleko, hon Botha, hon Windvoël, hon Morutoa, hon
Mabe, hon Roopnarain and hon J Semple - will be addressing you
today. They will tell you how difficult it was for us to close our
eyes under the leadership of Minister Nkosazana Zuma and Minister
Frazer-Moleketi, that we were working into the night, because we as
parliamentarians would be in all the committee meetings, and then in
the evening, we would meet together with the officials and the
Ministers to plan for the next day. It was a very fulfilling
experience. We worked a lot and it was freezing, but it was
worthwhile to put our country where it is supposed to be.
In 1992, the Nobel Peace Prize winner Rigoberta Menchu, advocate for
Indian rights in Guatemala, said women should be:
. . . . a beacon of hope, to change systems promoting racism,
discrimination, exclusion and the lack of economic opportunity. It
is us who will eventually have to convince our governments that
women need to be given equal space, to be given an opportunity to
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exploit their potential, and that it is not a gift for women to
participate in decision-making - it is a right.
Recent statistics from the International Parliamentary Union show
that, by the end of 2003, for the first time, women had broken the
15% barrier across all national parliaments. Globally, women
currently comprise 15,2% of the combined numbers of both lower and
upper houses.
However, only 14 countries have so far managed to reach the 30%
threshold of women in national parliaments, a figure widely
considered to signify the point at which women can make a meaningful
impact on the work of parliament. It is very exciting that South
Africa is one of those 14 counties.
Rwanda’s elections in 2003 saw one of the most significant increases
in women’s representation in parliament. This increase amounted to
23,1% more women being elected to the national assembly. The
representation of women in parliament currently stands at an
impressive 48,8%, rendering Rwanda the country which has come
closest to reaching equal numbers of men and women in national
parliament. Among the reasons for this shift is the fact that woman
MPs in Rwanda benefited from a constitutional quota, which reserves
24 of 80 seats in the lower house and 30% of the seats in the upper
house for women.
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From a regional perspective, sub-Saharan Africa has also made
significant shifts, where the regional average has increased from
11,3% in 2000 to 15,3% in 2004. South Africa does not have an
electoral quota for women, or a constitutional guarantee that spells
out numbers with respect to the National Assembly, the National
Council of Provinces or appointments in Parliament.
However, we are a signatory of the SADC Declaration on Gender and
Development of 1997, and its addendum on the prevention and
eradication of violence against women, signed by heads of state in
1998. Article H of that declaration refers to a minimum of 30%
representation of women in decision-making structures.
We have made substantive progress in advancing women in political
and decision-making positions, especially in the public sector. The
private sector still remains a challenge, even though matters are
progressing there. We have reason to celebrate the great strides
this government has made in advancing gender equity and
representivity.
The Office on the Status of Women resides in the Presidency. The
gender machinery has been implemented effectively, with each
department having its own gender division. Women currently comprise
a significant part of the South African Cabinet. Within Cabinet the
representation of women in 2004 was 42,8%, which is a 9,5% increase
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from 33% in 2003. In 2002, women made up 57,1% of Deputy Ministers.
In 2003, the figure was 50% and, in 2004, the figure stood at 47,6%.
The decrease in the percentage does not translate into a decrease in
the actual number of women, but to an increase in the number of
Deputy Ministers. For the first time in the history of the country,
the Deputy President is a woman. Of the 28 Ministers, 12 are women
of the 19 Deputy Ministers, 10 are women, and of the nine provincial
premiers, four are currently women. Please give South Africa a big
hand. [Applause.]
There are six office-bearers in the National Assembly, and women
currently fill three of these positions. There are currently 400
members in the National Assembly, of these 134 are women. I am told
the number has increased, but the last time I checked the
statistics, they came to 134.
Women make up 52% of the adult population in South Africa, and 41%
of the working South African population. They constitute 19,8% of
all executive managers, 10,7% of all directors in the country, and
6,2% of all CEOs and chairs of boards. In essence, the above means
that, altogether, 4% of chairs of boards in South Africa are women,
while only eight CEOs in South Africa are women. Both statistics
have increased since 2004, where only 11 chairs of boards were women
and seven CEOs were women. I think a lot of work has to be done, but
at least there is some improvement.
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Politics should involve an equal partnership between women and men,
afford equal standing to the needs and interests of both sexes, and
allow both women and men to participate in the pursuit of such needs
and interests.
This principle of gender equality has been entrenched in numerous
treaties, including the United Nations Charter, the Convention on
the Elimination of All Forms of Discrimination, and its protocol,
which we rectified earlier in the year, and the Beijing Declaration
and Platform for Action. However, statistics indicate that many
parliaments throughout the world are still dominated by male
representatives, and are thus neither gender balanced nor gender
sensitised.
I am aware that all South Africans throughout the country are
committed to ensuring that we do achieve gender representivity in
all spheres of our society. However, one of the key challenges is:
what do we do once we get there? We need to make a difference, move
from commitment to implementation, and lift other women as we rise.
Don’t leave them down there.
Remember, it is very lonely up there, and one would need a
foundation of people that will form a support base, so that when the
challenges that come with the territory cause you to trip and fall,
there are warm hands that encourage you to rise and fly again.
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We need to qualitatively change the lives of those who are most
vulnerable. Gender equity means that we need to raise our voice to
be the champions of fairness and equity. It also means that we need
to impress upon our girl children that abuse is wrong and must be
confronted at all times. More importantly, there is a greater need
to raise strong girl and boy children, who have a heightened sense
of botho, Ubuntu, tlhompho le maitseho (humanity, respect and
manners).
Advancing women’s issues in Parliament ought to lead to policies,
laws, new attitudes, and a public culture that empowers women in
broader society. This is less likely to happen if women do not have
a public face, and if those in the corridors of power, marginalise
women’s issues.
It has been shown that setting minimum levels of women’s involvement
in politics and other spheres, forces organisations to examine their
attitudes and policies. It forces them to develop criteria and draw
on wider pools of talent, and make concerted efforts to attract
people they would normally use, but who prove to be highly talented
members of Parliament.
It is important that Parliament is composed of members who are, in
turn, a reflection of the broader society in terms of gender, race,
and its socio-economic diversity. Surely, we can be proud of what we
have achieved. In fact, hon members, we should, as a challenge, put
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it to Parliament to review its electoral law, so that all parties
reflect agreed minimum women participation in election lists, so
that we do not only rely on the ruling party’s commitment to
affirming women, but on South African law for gender parity which is
already in our Constitution.
In the upcoming local government elections, I know for a fact that
the ANC candidates’ list will reflect 50:50 of both men and women. I
challenge the remaining parties to follow suit.
We need to create a chain of sisterhood that encourages support and
growth within our ranks. It is a strong chain that identifies,
nurtures and promotes talent. I am challenging all of you present
here to begin to build a legacy that we will be proud of by
stretching the net much wider. Let us ensure that through all our
activities, be it in the public or private sector, a lot more women
do have a better life.
Let us link with other women’s groupings, and influence the shape of
things. Let us destroy the chasm that separates us from our
communities. Let your leadership and knowledge have a dramatic
impact on our sisters and mothers in the rural areas, by including
and not excluding them from the net of empowerment and development.
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As human beings, we have a lot to learn from the animal kingdom. You
would understand with my environmental background that I can never
leave the animal kingdom.
In conclusion, I am going to tell a story of robins. Robins fly by
making wonderful patterns on the skyline. They do this with the
first one telling the next one to turn left or right. This message
is passed from the first bird to the last. At no stage do you hear
the next robin saying, “I am too stressed to turn left, let somebody
else do it.” [Laughter.]
As women we need to unite and make synchronised patterns on the
political, social and economic landscape, because it is only as a
united force that we can make significant and lasting change. Let us
take up the baton and raise our national flag on high. “Igama
lamakhosikasi. Malibongwe.” [Let the name of women be praised.]
[Applause.]
Ms J A SEMPLE: Chairperson, hon members, I would like to start off
by thanking Parliament and the Democratic Alliance for allowing me
to represent them in New York this year. It was the most wonderful
experience to see thousands of women from all over the world
congregating at the UN and practically taking over that huge office
and building for at least two weeks. Thank you.
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I am also pleased today to be able to talk about women and the
environment; something that I know is close to the Deputy Speaker’s
heart and to mine. As the primary caregivers of the family, women
bear the worst consequences of policies that ignore principles of
environmental sustainability, since they must cope with the
increased difficulties of the day-to-day survival of their families.
The Beijing Platform for Action and Cedaw both call for women to be
actively involved in environmental decision making, for gender
perspectives to be integrated into policies and programmes, and for
national, regional and international mechanisms to be established,
to assess the impact of environmental policies on women.
Beijing +5 also emphasised women’s rights to own land. The extent to
which these mandates have been implemented varies greatly throughout
the world, but despite country differences, women everywhere are
mobilising around the issue of access to and control over natural
resources.
Women are major contributors to the wellbeing and sustainable
development of their communities and nations, and to the maintenance
of the earth’s ecosystems, biodiversity, and natural resources. Very
often, the survival of their families depends on the sustainability
of the surrounding environment in terms of water, firewood,
indigenous plants and animals, and the soil.
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Across the globe, women are working to become more involved and more
adequately represented in decision-making on natural resources.
South African women are proud to have Madam Rejoyce Mabudafhasi as
our Deputy Minister of Environmental Affairs and Tourism. In those
areas where governmental representation is low, women still work at
grassroots level on environmental issues.
In Kenya, for example, most community-based organisations working on
environmental conservation are women led. Wangari Maathai, assistant
Minister for Environmental and Natural Resources, and the
chairperson of the Greenbelt Movement, won the 2004 Nobel Peace
Prize for her contribution to the environment, sustainable
development, democracy and peace.
It was my great pleasure to listen to her on several occasions
during the New York declaration summit, and to present to her a gift
on behalf of the South African delegation. Ms Maathai correctly
points out the direct correlation between democracy, rights and the
environment. It is always the poorest communities with the least
rights that suffer most from environmental degradation.
Her Greenbelt Movement planted over 20 million trees in Kenya alone,
which helped prevent soil erosion, while at the same time providing
shade and fuel. This is why I believe every house that is built in
South Africa should have a tree planted in its yard. If it’s a fruit
tree, all the better, as it will also be a food source.
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We learnt of women in the Pacific Islands who have been developing
partnerships with national and international agencies, using a
community approach to raising awareness. For example, rural women
have worked with the World Wildlife Fund for Nature on a wetlands
conservation initiative. Women in CARICOM countries are also highly
involved in civil society organisations that work on environmental
affairs, and the ministries and departments of gender affairs have
played a part in supporting these initiatives.
However, in other parts of the world, things are not going so well.
In Bangladesh, for example, women remain largely absent at all
levels of policy formulation and decision-making in natural resource
management, conservation, protection and rehabilitation, and their
experience and skills too often remain marginalised in policy-making
and decision-making bodies.
Even bodies like the EU, which one would expect to be more gender
compliant, have failed to develop a gender perspective in
environmental policy. No legislation has been adopted that deals
with women and the environment directly, even though there is
increased knowledge that environmental hazards impact on women and
men differently, such as the possible link between breast cancer and
high levels of toxic chemicals in women’s bodies.
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I would like to show you a picture that probably only the front
people can see. This is actually in China. It shows a mother and
daughter standing in a sorghum field with a highly polluting power
station behind them. That picture could have been taken in any one
of our environmental hotspots in South Africa, like Vanderbijlpark
or Mpumalanga.
In many parts of Southern Africa women are not adequately involved
in the management of the environment. We welcome Pam Yako’s
appointment as Director-General of our Department of Environmental
Affairs and Tourism, and we hope that under her guidance,
environmental policies will now have the gender perspective that was
previously lacking. Perhaps we should consider having a feminine EIA
process to assess the impact of environmental policies on women,
both rurally and in urban areas.
Environmental degradation disproportionately affects women and
subsequently increases their workloads in the informal sector. In
Somalia, grassland degradation, marine pollution, deforestation and
coastal desertification increase the amount of time women must spend
looking for fuel wood, and threaten the livelihood of women farmers.
Have any similar studies been done in South Africa? We have very
much the same environmental problems, and no doubt they have the
same effect on women.
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Indigenous women throughout the world are hit hardest by
environmental degradation. In Canada, environmental contaminants
such as persistent organic pollutants, known as POPs, have bioaccumulated in Artic wildlife, and subsequently have impacted
negatively on Inuit women’s health through their diet, which
primarily consists of meat.
In the US, POPs disproportionately affect native American women and
children, as toxic runoffs from factories near tribal land poison
water and food sources that are then consumed by women and
transferred to their children through breast milk. Do we know what
effect air pollution hotspots in South Africa are having on our
women?
Ecological disasters also impact on women in particular ways. The
December 2004 Indian Ocean tsunami made no distinction between men
and women in the death toll list, but according to the UN it
produced gender-specific aftershocks, ranging from increasing
women’s traditional role in caring for the sick, to an escalation in
cases of rape and abuse. Once again, drought, floods and shack
fires, probably have the same effect on South African women. We need
to do specific environmental research to find out exactly what these
effects are.
At the 2002 World Summit on Sustainable Development held in South
Africa, women activists succeeded in winning landmark recognition of
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women’s rights to inherit land. Yet throughout the world there are
still laws blocking women’s rights to inheritance and ownership.
It would seem that gender equality and equity in the environmental
sector have not yet been achieved, not only in South Africa, but
throughout the world. Women’s access to and control over resources
needs to be safeguarded, and their skills, knowledge and experiences
and their practical and strategic needs should be respected. South
African women must hold the government to account in ensuring that a
rights-based approach to gender and the environment, as specified in
the Beijing Platform, is promoted. I thank you. [Applause.]
Dr U ROOPNARAIN: Hon Chairperson and hon members of this House, I
would like to begin my speech by thanking the Inkatha Freedom Party
for allowing me the opportunity to represent my party at the New
York conference.
The 49th session of the Commission on the Status of Women provided a
unique opportunity to review progress made towards gender parity and
equity. The last two decades have witnessed far-reaching changes
shaped by the influx of women into the public sphere. The results of
these events include shifts in the labour market, educational
achievements, significant decreases in fertility rates and a
modification in relationships within the family and in certain
decision-making areas.
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Important issues were discussed at the conference, but the greatest
learning experiences at the Beijing Conference in New York didn’t
happen during speeches and resolutions. They happened during
conversations. They begin as a collective learning process. They
happen when women of different cultures and backgrounds share
experiences and information.
My speech is premised on such an intervention. I was deeply touched
when I heard accounts of women with HIV/Aids, women with
disabilities, women who were victims of armed conflict, women who
were affected by the tsunami disaster, and many other accounts.
One point was clear: It is women’s voices that are heard above all
others, women are the advocates, and they are the activists. It is
women who are moved to act selflessly and speak publicly, often
risking prejudice, abuse or violence in order to improve the lives
of others. The Convention on the Elimination of Discrimination
Against Women underlines that:
. . . all human beings are born free and equal in dignity and
rights and that everyone is entitled to all rights and freedoms
set forth therein, without distinction of any kind, including
distinction based on sex.
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Yet, what we as delegates listened to were in total contempt of this
convention. Woman after woman, from one country after another, spoke
about the inhumane oppression they suffered.
One factor that incessantly reared its head was the situation of
HIV/Aids and women, where women now account for half of all people
living with HIV. Why are more women vulnerable to the infection, you
ask? Why is it that so many are women, even when it is the men who
have more sexual partners outside marriage? Usually, it is society’s
inequalities that put them at risk.
A range of factors conspire to make women more vulnerable - poverty,
abuse, lack of information, coercion by older men, and men having
several concurrent sexual relationships. But one does not need to
attend the Beijing Conference to discover this. Here at home, young
women are desperate for the three Cs, as they are called – cell
phone, clothes and cash. And often, they engage in sexual relations
with older men, ignorant of the partner’s status.
Let me be clear: HIV/Aids is the most ferocious assault ever made by
communicable disease on women’s health. But it does not stop there.
Other calamities include female genital mutilation, violence against
women and sexual violence in particular, rape as a weapon of war,
especially in countries like Rwanda, Darfur, Northern Uganda,
Eastern Congo, and marital rape.
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I pause to point out that studies now show that, in some parts of
Africa, the prevalence rates of HIV in marriage are often higher
than they are for sexually active single women in the surrounding
community. Who would have thought that this was possible?
One thing was clear at the conference: It cannot be business as
usual. We must be more strategic in our efforts to mainstream gender
into the overall macrocontext and the microcontext of communities,
and certainly in our response to HIV/Aids.
Another area that deeply touched me was the area of women with
disabilities and their vulnerability. Time and time again, women
spoke about their experiences. Very often, mentally challenged women
became victims of pornography. These women had no idea that they
were being photographed, only for their photographs to be published
in pornographic material and on websites.
Physically challenged women gave chilling accounts of how men
repeatedly raped them, and left them totally naked in a bathtub.
These women were wheelchair-bound and could not access help.
Sometimes men deliberately rearranged the furniture in the house
without telling their blind partners. This meant further hurt and
injury. Many women gave accounts of how people view disabled women
as being asexual.
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Research shows that women with disabilities face double oppression.
Women cannot continue to be denied access to fundamental rights,
fundamental health care and reproductive care.
When landmines, domestic abuse, genital mutilation and other forms
of violence continue to tear at the lives of women around the globe,
we need action. When prejudice, ignorance and other barriers stop
women with disabilities from getting the nutrition, physical
activities and other tools they need to survive, we need action.
We need to strive and work for the day when issues affecting women
are not dealt with as a side issue, a day when research on women
with disabilities is part of all research, and when health care for
women with disabilities is part of all health care.
Women and children make up a large majority of the world’s refugees.
It is a violation of human rights when women and girls are sold into
slavery and prostitution. It is a violation of human rights when
women are doused with gasoline, set on fire and burnt to death
because their marriage dowries are deemed too small. It is a
violation of human rights when individual women are raped in their
own communities and thousands of women are subjected to rape as a
tactic or prize of war.
It is a violation of human rights when a leading cause of death
amongst women aged 14 to 44 is violence. It is a violation of human
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rights when young girls are brutalised by the painful and degrading
practice of genital mutilation. It is also a violation of human
rights when women and young girls are denied access to
antiretroviral treatment. It is a violation of human rights when
babies are raped and killed.
We need to look forward to the day when governments across the globe
understand that women constitute half of everything that affects
mankind, and women have to be involved in absolutely everything. The
political leadership of Africa needs to be lobbied with greater
intensity on issues of gender.
The IFP adopts this report, but we cannot just deliberate and have
dialogue on issues emanating from this report. We need to calibrate
what recommendations can be taken forward. And these factors cannot
be addressed piecemeal. These are non-negotiable. Change can only be
brought about through education of young girls, through legal or
social reforms.
Finally, I would like to end by repeating what one representative
told us, “What will kill us more than Aids is despair and
hopelessness; what we need is hope”. Only if we put our report into
action will we be able to answer the question: Who will give Africa
hope and who will look after Africa’s children? Only we in this
House can answer this question. I thank you. [Applause.]
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Ms N C NKABINDE: Chairperson and hon members, it is good that the
international community remains dedicated to the Beijing
Declaration, as well as the Beijing Platform for Action. Sadly, it
seems that the United States of America remains opposed to important
aspects of gender equality. Despite this, we can only hope that the
international community will not waver in their resolve and will
continue with the vital work of implementing the goals of Beijing
+10.
As with all long-term international programmes, the important thing
is to keep momentum and ensure that regular reviews show progress
and do not become an end in themselves; in other words we must avoid
the talk shop syndrome.
In this regard, the various resolutions and recommendations reported
on by the South African delegation are welcomed on two fronts;
firstly, because it shows the continuation of a broad international
front in support of gender equality, and secondly, it demonstrates
South Africa’s leading role in this campaign.
Three of the resolutions deserve special mention, the economic
advancement of women, the elimination of the trafficking of women
and children and, finally, the mainstreaming of a gender perspective
into all national policies and programmes. It is our hope that these
resolutions will result in significant improvement in the quality of
life of women around the globe. In our view, these three resolutions
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tackle the problem of women being marginalised and exploited in
specific and relevant ways.
Turning towards the recommendations of the report, the UDM supports
these wholeheartedly. We urge government and this House to pursue
the policy and legislative development required vigorously. The
leading role that South Africa is playing in the international
multilateral gender campaign, must at all times be underpinned by
our speedy domestic implementation of the resolutions.
Therefore, the three resolutions mentioned earlier, must be
implemented within South African society immediately. Legislative
measures against the trafficking of women and girls must be
introduced as a matter of urgency; we must not countenance the
possibility of our country as a haven for this modern-day slavery.
Similarly, the implementation and scope of our efforts to stamp out
violence and abuse of women must be stepped up. Our mothers, sisters
and daughters deserve to be free from the fear of rape and abuse.
The participation of women in the South African economy, as well as
mainstreaming gender issues within national programmes, require
renewed attention. Whilst these are not legislative issues, but
rather a question of policy, we need to ask whether the existing
mechanisms are sufficient. The question we need to ask is whether
gender equality truly and adequately informs all major economic and
policy decisions. If the answer is, no, then I would suggest that
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this House must be in the forefront of designing new mechanisms to
ensure that the needs and concerns of women are heard and heeded. I
thank you. [Applause.]
Ms F BATYI: Chairperson, members of Parliament, South Africa has
made substantial progress with regard to the protection of women’s
rights and gender equality, as enshrined in our progressive
Constitution, which states that neither the state nor any person –
. . . may unfairly discriminate directly or indirectly against
anyone on one or more grounds, including race, gender, sex,
pregnancy, marital status, ethnic or social origin, colour, sexual
orientation, age, disability, religion, conscience, belief,
culture, language and birth.
Overall, the ID wants to commend the South African government on its
efforts to uphold the constitutional provision by means of the
Beijing Programme for Action. We fully support the work of the
institutions established under our national gender machinery and are
very pleased with the accompanying progress and successes.
The increase in the number of women in the National Assembly after
our last general elections, and their lobbying for laws that promote
gender justice, such as the Domestic Violence Act, the Maintenance
Act, the Recognition of Customary Marriages Act and the Choice of
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Termination of Pregnancy Act, are achievements we should all take
pride in.
Moreover, the new credit scheme for small-scale farmers, as
announced by Finance Minister Trevor Manuel in his budget speech
this year, provides ample opportunity to ensure that women have
access to land, as well as the means to work their land.
Finally, the appointment of a female Deputy President has been an
invaluable step by our President to include women in important
decision-making positions. [Applause.]
Yet, many challenges remain to be addressed; women still constitute
the majority of the poor, homeless, jobless and dispossessed, where
about 57% of all unemployed people in our country are women and 80%
of female-headed households have no wage earners.
In addition, South Africa continues to have very high levels of
sexual and domestic violence, and our courts are still unable to
deal with rape cases quickly and sensitively. Illiteracy and lack of
skills are still very predominant amongst our women, especially in
rural areas, which make it difficult for them to access jobs and
take part in our mainstream economy.
Finally, women, especially young women, are more vulnerable to the
HIV/Aids pandemic, as they are still powerless when it comes to
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negotiating safe sex. The lack of health resources in schools and
the absence of Aids training information centres in rural areas
exacerbate this problem.
In conclusion, the ID agrees with the NGO sector that the Beijing
Platform for Action serve as a minimum standard. South Africa and
the rest of the world should aim to achieve much more. South Africa
has done extremely well as far as legislation is concerned, but this
means nothing if implementation and a change in society’s attitude
are not part of the package.
We need to get back to basics and focus on action – action from
government, civil society and women themselves. Only then will we as
government and citizens of this country do justice to the right to
equality as entrenched in our constitutional Bill of Rights. I thank
you. [Applause.]
Ms M R MORUTOA: Chairperson, Madam Deputy Speaker, hon Ministers,
hon Deputy Ministers, hon Deputy President, hon members of
Parliament and the public at large, I greet you all.
Sihlalo, ndizakuthetha ngohambo lwamalungu ePalamente awayeye
kwinkomfa eyayiseMelika isaziwa njenge 49th Session of the United
Nations Commission on the Status of Women eyayibanjelwe e-New York
ngomhla wama-28 kuFebruwari ukuya kumhla we-11 kuMatshi 2005.
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Ndizakuthetha ngovavanyo lwamazwe onke jikelele mayelana
nezivumelwano ezazenzwe apho nguMzantsi Afrika, owayeyinxalenye
yamanye amazwe kwinkomfa yesine yeZizwe Ezimanyeneyo, kwinkomfa
yamakhosikazi eBeijing naseChina. Ndaye ndizakuchaza nemeko yethu
apha eMzantsi Afrika malunga nezozigqibo zazithathwe kuloo nkomfa.
(Translation of Xhosa paragraphs follows.)
[Chairperson, I rise to give a report about the visit of some
members of Parliament to the 49th Session of the United Nations
Commission on the Status of Women, which was held in New York in the
United States from 28 February to 11 March 2005.
I will also touch on the review and appraisal of the Beijing
Declaration and Platform for Action that was adopted in Beijing,
China, during the United Nations Fourth World Conference on Women by
various countries, including South Africa. The status and position
of South Africa with regard to the decisions that were taken at that
conference will also be reflected in this report.]
The 49th session provided an opportunity to review progress made
towards gender equality since the Fourth World Conference on Women
held in 1995. The objective of the session was to reiterate, renew
and enhance the Beijing commitments.
The Parliament of South Africa has a particular role to play with
regard to overseeing the implementation of the Beijing Platform for
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Action. One of the primary tasks of the Joint Monitoring Committee
on the Improvement of Quality of Life and Status of Women is to
monitor and evaluate progress made in relation to enhancing the
quality of women’s lives in South Africa, with specific reference to
the government’s commitments, such as the Beijing Platform for
Action, the Convention on the Elimination of All Forms of
Discrimination Against Women, Cedaw, and any other specific
international instruments.
The programme of the 49th session of the Commission on the Status of
Women was structured around six thematic areas: Firstly, remaining
challenges in relation to statistics and indicators. We must build
on the high-level round table discussions we had when organising the
48th session of the commission in 2004, as well as available data on
the world’s women’s trends and statistics of 2005 and the World
Survey on the Role of Women in Development.
Secondly, future perspectives on the promotion of gender equality
through the eyes of young men and women, and this was also discussed
at the high-level round table discussions, as was the role of
regional and intergovernmental forums in promoting gender equality.
In addition to the main programme outlined above, the African women
organised a panel discussion on monitoring gender equality
commitments. The International Parliamentary Union also organised a
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session to explore the role of parliaments in giving effect to the
promotion of gender equity.
Various NGOs organised a series of side events, which ranged in
thematic focus. These included a session on violence against women,
economic empowerment of women, women and the environment and the
trafficking in women and girls, etc.
Maybe I should hint at the declarations emanating from the 49th
session of the Conference on the Status of Women, namely that all
governments reaffirm their commitment. My focus will be on some of
the resolutions of the conference, such as the elimination of the
trafficking of women and girls for all forms of exploitation.
Internationally, the trafficking of persons has been identified as a
serious threat to human security and development. It thrives because
it is extremely profitable, with relatively few risks attached. It
is easier to move human cargo through borders and past immigration
officials than it is to traffic drugs or weapons. In Africa the
situation is exacerbated by the collapse of the rule of law in
certain countries, widespread corruption and failure to implement
existing antislavery laws, which allows perpetrators to go
unpunished.
Trafficking of people, especially women and children, is considered
to be the third largest source of profits for organised crime next
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to drugs and guns. The trafficking of women has become a global
problem of such magnitude that Interpol has established a working
group on trafficking in women for sexual exploitation.
The working group initially comprised 40 member countries, mainly
from Europe. Interpol has devoted its attention in 2005 to
increasing the participation from Africa, Asia and the Americas. The
purposes for trafficking persons are varied, including sexual
exploitation, forced labour or slavery practices, servitude, forced
marriages, adoption or the removal of organs or other body parts.
Human trafficking for sexual purposes constitutes a form of violence
against women and children and serves to bring about systematic
gender inequity, as it reinforces the premise that women and
children are commodities. The overwhelming majority of victims of
trafficking for sex work purposes are women and girls, while
perpetrators are predominantly men.
Limited research has been conducted on trafficking in South Africa.
There are no official statistics on the number of persons trafficked
to and from South Africa, particularly into the sex industry. South
Africa does not have antitrafficking legislation. This is one of the
factors that make this debate to be of utmost importance. We need to
hasten the process of legislating the antitrafficking legislation.
South Africa is considered to be mainly a country of destination for
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victims of trafficking. It is also considered to be a transit point
of trafficking operations between developing countries and Europe.
Research conducted by Molo Songololo has brought this information to
the joint monitoring committee. The findings continue to tell us how
street children are coerced or forcibly abducted by men and taken
across the border to towns and asparagus farms in the Eastern Free
State. They are then held captive in private houses and are sexually
assaulted over the course of a few days. My good people of South
Africa, we cannot keep quiet about this.
One of the resolutions concerned violence against women - both
domestic violence and violence perpetrated in public arenas. This
remains unacceptably high in South Africa. Gender-based violence
perpetrated against women is widespread. Its occurrence cuts across
geographical areas, race, class and cultural boundaries.
South African government structures place considerable emphasis on
the use of quantitative data to inform policy and hence their
spending priorities and the availability of accurate statistics on
gender-based violence are key factors when determining government
policy interventions. Unfortunately the joint monitoring committee,
when it exercised its oversight role last time, discovered that
these statistics were not readily available. If we cannot collate
reliable statistical information pertaining to violence against
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women in the domestic arena, we will rely virtually on speculation
on this level of violence.
The development of an integrated response to violence against women
is an ongoing and evolving process. Measures have thus far included
the following: Policy framework development and law reform - this is
a comprehensive law reform programme that has sought to strengthen
the integrated approach to violence against women.
Law reform measures give priority to sexual offences and domestic
violence and a specific focus is placed on crimes such as
trafficking in women and children and child pornography. In terms of
law interventions, the focus is on bail, sentencing, victim
empowerment and integrated responses.
Administratively, guidelines to support the implementation of laws
have been developed and include, for example, the sexual offences.
Institutional mechanisms have also been created to address violence
against women. With all the tools I have mentioned in place, we
should be experiencing minimal domestic incidents, but just the
opposite is true: More women are being killed by their partners.
Previously when we struggled for the emancipation of women, we knew
that women were triple oppressed: by virtue of their colour, at
home, and at their places of work. This escalated into domestic
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violence, intimate femicide, and trafficking of women and children.
These offences became first class enemies to women and society.
Gauteng has been identified as one of the provinces where intimate
femicide is rife. A recent incident was related to a power struggle
between a husband and a wife, and what aggravated the situation was
that the wife was given authority over their property, which
previously was a family house. This means that women are not safe in
their marriages.
Intimate femicide or intimate female homicide refers to killing of
women by intimate partners. This is one of the most extreme forms of
violence against women. International studies have linked the
occurrence to a history of domestic violence, the risk increasing
where there is trial separation or actual separation.
A study conducted in 1999 showed a link between the ownership of
legal guns and incidents of femicide. One in five of the
perpetrators of intimate femicide, ie 20,6%, had a legal firearm,
compared to 3,5% of the perpetrators of nonintimate femicide who had
alcohol abuse problems, and compared to 12,5% of the perpetrators of
nonintimate femicide. Only 37,3% of female homicides resulted in
convictions. Lack of evidence was the reason given in 69,9% of cases
in which the perpetrators were acquitted.
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The joint monitoring committee strongly appeals to male partners to
be part of the eradication of this source of violence against women.
We know that the Medical Research Council, MRC, and the Commission
on Gender Equality hosted a workshop on 1 June 2005, at which the
findings of the MRC’s national study on intimate femicide were
presented.
In addition, here in Parliament, tomorrow, 24 August 2005, we are
hosting a discussion between civil society, members of Parliament,
the Women’s Caucus and their male counterparts, business people and,
of course, girl children. This is to describe the problem of
intimate femicide in South Africa; to identify the factors
associated with intimate femicide and violence against women and
children; and to compare the management of women killed in domestic
violence.
If we, as parliamentarians, husbands, civil society and
nongovernmental organisations, do not make this our responsibility,
we will experience a negative result in the implementation of our
laws. I thank you. [Applause.]
Mr L M GREEN: Chairperson, the ACDP expresses its appreciation for
the excellent task performed by the parliamentary delegation to the
49th Session of UN Commission on the Status of Women.
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The report compiled by the delegation emphasises that women have a
significant role to play in restoring order to this country. Women
are the cornerstones of our society. Yet they suffer extreme abuse,
exploitation and degradation. It is extremely sad when government
passes legislation that renders women even more vulnerable, or when
they neglect to pass legislation that would effectively address the
problems of women.
Parliament is urged to take cognisance of the references to
legislation, contained in this report, regarding pornography and
child trafficking. The ACDP is particularly pleased to note that the
link between pornography and violence has finally been acknowledged
without reservation. We support the call for legislators and civil
society to protect our women and children from the dangers of
pornography.
We no longer have to wait for the official release of statistics to
see the devastating effects of moral degeneration on our women, our
children and our society. All South Africans know that babies are
being raped on almost a daily basis. We are all aware that children
from as young as seven years of age are being sold into
prostitution. We are aware that prostitution leads to misery for
women and children: What kind of society are we trying to create?
This question is also posed by the delegates in their report. At the
2004 Women’s Parliament certain South African women’s groups
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unfortunately voiced their support for the legalisation of
prostitution. However, the Beijing +10 delegation is calling for a
review of that demand. They ask the question: What will better serve
to protect women’s rights and their social status? Is it the
legalisation of sex work or its criminalisation?
The ACDP is of the view that there are many unintended consequences
in legalising prostitution. An obvious consequence would be a rapid
increase in the use of children in prostitution and trafficking.
The absence of legislation pertaining to trafficking of women and
children in South Africa - and this has been referred to by several
speakers at this podium - has meant that offenders have been given
almost a free rein to abduct, prostitute, degrade, abuse and
exploit. Trafficking separates mothers from their children. It
exposes children to being used in pornography and makes women and
children more vulnerable to violence.
In conclusion, August is the month for women. Let us make a
concerted effort to address these issues that affect the lives of
South African women so profoundly. It is encouraging to witness the
wisdom and clarity of mind with which women are attacking the
obstacles that confront them. Let us harness all our strength and
give them all our support in any way we can. I thank you.
Dr S E M PHEKO: Mr Chairperson, our national liberation will be
meaningless if it allows the persistence, in any form whatever, of
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the oppression, suppression, exploitation, depersonalisation,
discrimination against and social degradation of women.
The Beijing Platform for Action provides our nation with a scorecard
and we should do everything in our power to advance everything that
will lead to social equality between men and women.
The representation of women in this Parliament and in South Africa’s
Cabinet is commendable. The call by Salga for 50% representation of
women in the upcoming local government elections is a call that all
political parties must heed. We also need to call for the increased
representation of women in the private and economic sectors.
African women are taking up the banner of advancing equality in our
society evidenced by initiatives such as the fatherhood project and
men as partners in the fight to end gender violence. However, many
challenges remain. South Africa has one of the highest levels of
gender violence in the world. Whatever the statistics, one rape is
one too many.
The long-awaited sexual offences legislation has been dormant in
this House for a long time. This is a scandal in a country with high
levels of gender violence. The implementation of this legislation is
long overdue. We cannot miss the opportunity to do so during this
period of Beijing +10, before the end of 2005.
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Ten years after Beijing we should celebrate African women’s
determination and our liberation struggle to eliminate women’s
landlessness, homelessness, privatisation of water and health care,
joblessness, illiteracy, poverty, HIV/Aids, violence against women
and negative cultural practices, which return women to an archaic
conception of tradition that impacts negatively on women in our
society.
Far from creating division, the struggle of our women is one of the
key instruments to speed up liberation and social advancement of the
African people. Let the Beijing Platform for Action move us from
broken promises and rhetoric to action. The PAC supports the report
of the Parliamentary Delegation to the 49th Session of the UN
Commission on the Status of Women. Thank you. [Applause.]
Ms S RAJBALLY: Chairperson, all protocol observed, from 1991 South
Africa committed itself to being a democracy, a democracy that shall
be exemplified by the values of equality, freedom and human rights
enshrined in our national Constitution of 1996 that governs as the
supreme law of the land.
Since 1994 we have experienced a total metamorphosis of South
African life and society. No matter our colour, creed, religion or
sex, we are free and equal. With the machinery to pave the way to a
true democracy in South Africa, it is for South Africans to seize
the opportunity to be whoever they want to be.
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However, even with a government of great competence to steer South
Africa to its true democracy, the aftermath of many years of
exploitation by the apartheid regime has left many challenges on our
path to success. In ten years, South Africa has achieved so much and
has developed into a great nation.
One of our greatest challenges has been to achieve gender equality,
and the MF is proud that South Africa is working hard to ensure the
advancement and the development of women in all sectors. However,
loopholes and challenges do exist and the MF especially expresses
its concern on the matter of violence against women.
We are proud to be part of the Beijing Platform for Action and its
commitment to improve the status and quality of life of women. We
are committed to the protection and status of women globally. South
Africa is a country that firmly advocates the adherence to and
enforcement of human rights and stands as a strong supporter of the
Beijing Platform for Action’s concerns that clearly correlate with
our domestic concerns.
In view of our report at the Beijing +10 on our progress in
achieving our commitment to the Beijing Platform for Action, the MF
is proud of our achievement. The report, which engaged the
contribution of our NGOs, served to reflect the true status and
progress domestically.
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We are pleased that this strategy of a report was opted for, as it
reflects South Africa’s commitment to true advancement. Matters
covered by the South African report reflect on issues of great
concern. The individual reports of NGOs are strongly supported.
This commitment extends to the greater continent of Africa and we
are pleased at the achievements attained at the 7th African Regional
Conference on Women that took place in October 2004 in Addis Ababa,
and the recommendations made to the African continent are supported.
It is hoped that our African brothers and sisters excel at these
recommendations domestically and the liberation of women of South
Africa would be shifted from paper and words into reality.
The MF reaffirms its commitment to the Beijing Platform for Action
and we acknowledge that success domestically is beyond government
and should be all of South Africa’s commitment.
We are equal and free. Stop all violence against women and children.
Women celebrate who you are; you have the power to be whoever you
want to be. Malibongwe! Igama lamakhosikazi! [Let it be praised! The
name of women!] [Applause.]
Mrs S M CAMERER: Thank you, Chairperson. I would just like to say a
few words about the resolution referred to on page 34 of the report
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to the commission which ensures that UN member states recognise the
need to reduce demands for trafficked women and children. This was
introduced by the US but the report makes it clear that South Africa
demanded a holistic approach to trafficking; saying that focusing on
demand was too narrow. Our delegation insisted that reference should
be made to Cedaw and other key international instruments, as well as
contributory factors such as poverty and unemployment.
South Africa, which eventually co-sponsored the resolution, got its
way and the final text of the resolution called on governments to
take action to address root factors, including poverty and gender
inequality as well as external factors that encouraged trafficking
for protection and other forms of commercialised sex and to take
steps to criminalise trafficking in persons.
It is ironic that South Africa was so upfront about this on the
international stage because as far as our own laws to criminalise
trafficking are concerned, we have not got our house in order. In
spite of the fact that the UN Protocol to prevent trafficking in
persons is in force in South Africa, we do not have any legislation
as yet which specifically outlaws trafficking in persons, especially
women and girl children for the purpose of sexual or any other form
of exploitation.
This is in spite of the fact that there is ample evidence that
trafficking is on the increase in our subcontinent. The
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International Organisation for Immigration contends that there is
one long grass pathway between the DRC and Cape Town with minimal
border control and the main destination of victims of trafficking
from sub-Saharan Africa is South Africa – our country.
I have recently listened to briefings by the SA Police’s sexual
offences and child protection unit as well as by specialists in
sexual offences from the NPA, and both deplore the fact that South
Africa still has no specific legislation outlawing trafficking in
persons, in spite of years of requests by these authorities and
years of research by the SA Law Reform Commission.
Such legislation should also ensure that counselling and assistance
to victims of trafficking be made available by government. The NPA
points out that it is extremely difficult to prosecute successfully
for trafficking in the current legal environment.
As a signatory to the UN Protocol South Africa is obliged to adopt
legislative measures to establish trafficking as a criminal offence
but we are going about it piecemeal. For example, a provision has
been included in the recently passed Children’s Act to outlaw
trafficking in children for all purposes.
However, these provisions of the new Act have not yet been enacted
so the police and prosecution services still have to rely on section
28 of the Constitution, which protects children, common law crimes
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such as abduction, kidnapping, rape and indecent assault, and some
statutory provisions in the old Child Care Act and Sexual Offences
Act which are ineffective. They have even tried using the Prevention
of Organised Crime Act, with limited success.
Similarly for women, the Sexual Offences Bill, when it last served
before the Portfolio Committee on Justice prior to the April 2004
general election contained a clause outlawing trafficking in women
and children. This was included at the specific request of the DA,
as I had submitted a Private Member’s Bill outlawing trafficking,
which was supported by the relevant committee of Parliament and the
Department of Justice agreed that it should be incorporated.
In the meantime, the Sexual Offences Bill has disappeared back into
the Department of Justice where it has remained for the past 16
months! Repeated questions to the Minister of Justice as to when it
might return to Parliament have elicited the response that she
regards it as a priority and we will get it back this year. But it
is already nearly September and there is no sign of the Bill!
The bottom line is that as things stand now South Africa has not
complied with its international obligations to criminalise
trafficking, and the government is not assisting the law enforcement
agencies to combat this growing scourge in our sub-continent. We can
only appeal to the government to get a move-on, and I am delighted
to see our new Deputy President, the Leader of Government Business,
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present at this debate. The DA will soon be making its own
submissions for a comprehensive anti-trafficking Bill. Thank you.
[Applause.]
Mr T M MASUTHA: Chairperson, Deputy President, let me start by
saluting the many heroines, sung and unsung, standing and those that
have fallen, for the gallant demonstration of dedication to struggle
that they displayed in 1956 when they marched on the Union
Buildings, as the Bapedi would say: “Mmago ngwana o swara thipa ka
bogaleng.” [If a woman wants to achieve something she has to be
courageous.] [Applause.]
I am deeply honoured yet humbled at having been afforded this
opportunity of addressing you on this subject, on which I am least
qualified as indeed are, in my humble opinion, all men. For, as men,
we have never known how it feels to conceive and give birth to new
life, and to experience the pain of delivery at childbirth; the
anxiety associated with the intimate responsibility of ensuring the
survival and development of this new life; the agony of its
paternity being denounced and having to face the challenge of
raising it single-handedly whilst the paternal side of this joint
venture steps aside, completely indifferent to the situation.
Yes, indeed, social and economic inequalities between men and women
in most societies of the world, including our own, persist because
human society, steeped in its patriarchal legacy, continues to have
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cold feet and will not take the plunge into the unchartered waters
of gender equality. Yet many lessons are there to be learnt from
nature itself, even by observing the social structures of various
species in the animal kingdom itself.
In that kingdom, for example, it is generally unheard of that males
perpetrate violence against their offspring and female counterparts,
let alone within the same family unit. On the contrary, the males
would perform a supportive and protective role and share in the core
familial responsibilities of caring for, and protecting, the young.
But where could things possibly have gone wrong in our human
society, resulting in phenomena such as paedophilia, infanticide,
femicide – the killing of women - and other violent crimes against
women and children? Where did we lose our inherent human attributes
of compassion, care and responsibility commonly known as ubuntu,
particularly for those who will ensure our continued existence into
the future, namely the women and children they give birth to?
It is because of this and other similar concerns that the world
gathered in Beijing in November 1995 and made the following
declaration, and I quote:
We, the governments participating in the Fourth World Conference
on Women, gathered here in Beijing in September 1995, the year of
the 50th anniversary of the founding of the United Nations;
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determined to advance the goals of equality, development and peace
for all women everywhere in the interest of all humanity;
acknowledging the voices of all women everywhere and taking note
of the diversity of women and their roles and circumstances;
honouring the women who paved the way and inspired by the hope
present in the world’s youth; recognise that the status of women
has advanced in some important respects in the past decade but
that progress has been uneven, inequalities between women and men
have persisted and major obstacles remain serious consequences for
the wellbeing of all; also recognise that this situation is
exacerbated by the increasing poverty that is affecting the lives
of the majority of the world’s people, in particular women and
children, with origins in both the national and international
domains; dedicate ourselves unreservedly to addressing these
constraints and obstacles and thus enhancing further the
advancement and empowerment of women all over the world; and agree
that this requires urgent action in the spirit of determination,
hope, co-operation and solidarity now, and to carry us forward
into the next century.
In addition, the Beijing Platform for Action, BPA, which is an
agenda for women’s empowerment, was also adopted on the same
occasion. It aims at removing all the obstacles to women’s active
participation in all spheres of public and private life through a
full and equal share in economic, social, cultural and political
decision-making. This means that principles of shared power and
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responsibility should be established between women and men, at home,
in the workplace and in the wider national and international
communities.
Equality between women and men is a matter of human rights and a
condition for social justice. It is also a necessary and fundamental
prerequisite for equality, development and peace. A transformed
partnership based on equality between women and men is a condition
for people-centred and sustainable development. A sustained and
long-term commitment is essential so that women and men can work
together for themselves, for their children and for society to meet
the challenges of the 21st century.
In June 2000, a special session of the General Assembly reviewed the
implementation of the BPA at the Beijing +5 conference. Governments
pledged, in the outcome document they adopted, to review domestic
legislation with a view to striving to remove discriminatory
provisions as soon as possible, preferably by 2005.
The 10-year international review and appraisal of the Beijing
Platform for Action took place at the 49th session of the Commission
on the Status of Women in March 2005 at Beijing +10. In addition to
reviewing the implementation of the resolutions of the Platform for
Action, the commission discussed current challenges and forwardlooking strategies for the advancement and empowerment of women and
the girl child. After the Beijing conference, many African
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governments, including our own, declared their support for the
implementation of the BPA resolutions and developed national action
plans to give effect to their commitment.
These action plans outlined governmental priorities in implementing
the BPA as well as the proposed methods and institutional frameworks
within which the stated objectives were to be met. In 2000, our
government adopted the national policy framework for women’s
empowerment and gender equality. This policy framework sets out the
country’s vision for gender equality and details the means by which
the vision is to be achieved.
National gender machinery, which refers to structures that have been
put in place by the state to take responsibility for the periodic
review of changing conditions, or lack thereof, of women’s lives and
for eradicating the factors that perpetuate women’s subordination,
were established to drive the process.
The mechanisms and processes in the national machinery are set,
among others, to create the political, economic, legislative and
judicial environment that enables women to enjoy, exercise and
defend all their economic, social and political rights on an equal
basis with men; achieve equality for women as active citizens,
decision-makers and beneficiaries in the political, economic, social
and cultural spheres of life; prioritise the needs of women most in
need of social upliftment; develop and implement mechanisms through
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which the country can meet its constitutional and international
commitments towards gender equality, human rights and social
justice; promote the enactment of laws that take into account the
needs and aspirations of women; and allocate resources for the
benefit of women in rural and urban areas, and ensure that these
resources reach them.
Several structures and mechanisms have been put in place at various
levels of state and civil society with the above aims in mind. Last
year, in October, I was privileged to be part of a delegation to the
111th conference of the Interparliamentary Union in Geneva, where,
amongst other matters traversed, was the adoption and evaluation of
progress made in preparation for Beijing +10 by the
Interparliamentary Union.
One of the specific areas covered by the recommendations emanating
from this report was that states and political parties needed to
commit themselves to gender equality and to prioritise gender as a
permanent feature of their policies. From the ANC, I can speak
without fear of contradiction of our unwavering commitment to the
full attainment of this goal.
In so far as our laws are concerned, a number of women-friendly laws
have been passed by Parliament that seek to advance the human rights
and freedoms of women. Amongst these is a package of laws calculated
to protect women against all forms of violence including, and in
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particular, domestic violence as well as to introduce victim
empowerment strategies that have either been passed and are being
implemented or are in the process of being developed.
In addition, significant progress has been made in the
implementation of the new and more progressive measures contained in
the current maintenance legislation, through the injection of
additional resources, both human and material. The new Children’s
Bill that has already been alluded to this morning and that was
recently passed by this House – and is also awaiting passage in the
NCOP – was aimed primarily at the protection of the rights of
children, as required by our Constitution and international law. It
has added protective measures that will specifically address the
safety and wellbeing of the girl child.
These measures include extensive provisions against child
trafficking – as has already been alluded to by some of my
colleagues – child abduction and the sexual exploitation of
children. For the first time in our history, provisions regulating
the adoption of South African children by foreigners will also
ensure the necessary protection of those children in those
circumstances. The Bill also introduces a paedophile register and
measures to prevent paedophiles from working in close contact with
children. There is still a long way to go but we are getting there.
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To back these measures up, government has extended the social
security net to the large majority of poor children to enhance
social cohesion and in pursuit of a holistic approach for the
protection of children, especially in support of poor women in their
quest and challenge to protect and ensure the survival of their
children. I thank you. [Applause.]
Debate concluded.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, on behalf
of the Chief Whip of the Majority Party, I move:
That the report be adopted.
Motion agreed to.
Report accordingly adopted.
The House adjourned at 17:44.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
THURSDAY, 23 JUNE 2005
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ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
Bills passed by Houses – to be submitted to President for assent
(1)
2.
Bills passed by National Council of Provinces on 23 June 2005:
(i)
Taxation Laws Amendment Bill [B 19 – 2005] (National Assembly – sec 77)
(ii)
Taxation Laws Second Amendment Bill [B 20 – 2005] (National Assembly – sec 75)
Translations of Bills submitted
(1)
The Minister of Finance
Tweede Wysigingswetsontwerp op Belastingwette [W 20 – 2005] (National Assembly – sec 75)
This is the official translation into Afrikaans of the Taxation Laws Second Amendment Bill [B
20 – 2005] (National Assembly – sec 75).
National Assembly
1.
Message from National Council of Provinces to National Assembly in respect of Bill passed
by Council and transmitted to Assembly
23 AUGUST 2005
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(1) Bill passed by National Council of Provinces on 23 June 2005 and transmitted for
concurrence:
Older Persons Bill [B 68B - 2003] (National Council of Provinces – sec 76)
The Bill has been referred to the Portfolio Committee on Social Development of the
National Assembly.
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Science and Technology on Statute of the Centre for Science and
Technology of the Non-Aligned Movement and Other Developing Countries, dated 21 June 2005:
The Portfolio Committee on Science and Technology, having considered the request for approval by
Parliament of the Statute of the Centre for Science and Technology of the Non-Aligned Movement and
Other Developing Countries, referred to it, recommends that the House, in terms of section 231(2) of the
Constitution, approve the said Statute.
Request to be considered.
2.
Report of the Portfolio Committee on Labour on Oversight visits to Northern Cape and North West
Provinces, dated 8 February 2005:
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The Portfolio Committee on Labour, having conducted oversight visits to the Northern Cape and the North West
from 4 to 8 October 2004, reports as follows:
A. Names of delegation
Ms O R Kasienyane (ANC-Chairperson)
Mr T G Anthony (ANC)
Mr M Maduma (ANC)
Ms L N Moss (ANC)
Mr M J G Mzondeki (ANC)
Ms N D Ngcengwane (ANC)
Mr G G Oliphant (ANC)
Mr S M Rasmeni (ANC)
Ms B Tinto (ANC)
Mr R K Henderson (DA)
Prince N E Zulu (IFP)
Mr N T Godi (PAC)
Ms S Rajbally (MF)
Mr W D Spies (FF Plus).
Ms P Jayiya (Committee Secretary) and Ms C B Paulse (Committee Assistant) accompanied the
delegation.
B. Terms of reference
The terms of reference of the Committee were to:
*
Exercise oversight over the DOL’s adherence to the strategic objectives as set out in its strategic
plan for 2004-05, and to assess progress made with the implementation of the set objectives.
23 AUGUST 2005
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*
Assess the level of compliance with the existing labour legislation by the DOL and employers.
*
Ascertain whether targets set in relation to employment equity, learnerships, occupational health
and safety and job creation were met.
*
Establish progress and challenges faced at provincial level by the DOL and other stakeholders.
*
Conduct oversight by interacting with the DOL, labour centres, employers and employees
(including organised labour), the Commission for Conciliation, Mediation and Arbitration (CCMA),
Umsobomvu Youth Fund, designated groups (Women, people with disabilities and the youth) and
other stakeholders.
C. Itinerary
Day one: 4 October 2004
(1)
Briefing at Northern Cape Provincial Office in Kimberley.
(2)
Presentation at PPC Lime Mine.
(3)
Departure to Kuruman.
Day two: 5 October 2004
(1)
Presentation at Sishen Iron Ore Mine.
(2)
Presentation by DOL and labour centre staff at Livingstone Lodge, Kuruman.
End of Northern Cape programme.
Depart for Vryburg.
(3)
Meeting with staff from Vryburg and Taung Labour Centres
Day three: 6 October 2004
(1)
Visit to two farms in Vryburg - interaction with farmers and farm workers.
23 AUGUST 2005
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Depart for Mafikeng.
Day four: 7 October 2004
(1)
Briefing by provincial office (Mmabatho).
(2)
Meeting with Provincial Skills Development Forum (PSDF), Umsobomvu Youth Fund,
SANGOGO, and designated groups.
Depart for Klerksdorp.
(3)
Meeting with CCMA.
Day five: 8 October 2004
(1)
Meeting with North West Labour Market Co-ordinating Forum (NWLMCF).
(2)
Media briefing.
End of visit.
D. Structure of the report
The report presents the daily activities undertaken by the
delegation. It outlines the various presentations made to the
delegates by the various stakeholders, site visits, salient issues
and problems identified by the Committee while on site visits, and
recommendations put forward by the Committee for action.
4 October 2004
(1)
Presentation by Northern Cape DOL Provincial Office
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The Committee received a briefing from the management team comprising
the following persons:
i
Mr D Makhanda, Provincial Executive Manager;
ii
Mr J Mphahlele, Head: Regional Office, Kimberley;
iii
Ms P Ruwana, Business Unit Manager: Labour Market Information,
Statistics and Planning (LMIS&P);
iv
Ms I Schoeman, Business Unit Manager: Management Support Services
(MSS);
v
Mr A K Pillay, Business Unit Manager: Beneficiary Services;
vi
Ms F Camphor, Business Unit Manager: Employment and Skills
Development Services (ESDS);
vii
Mr R Geswint: Inspection and Enforcement Services (IES);
viii Mr G Sefotlho, Communications Officer.
The Provincial Executive Manager briefly introduced the
organisational structure. The Business Unit Managers of the various
programmes made presentations as follows:
(2)
IES
The province has a total of seven labour centres and 42 inspectors. The labour centres are
serviced by two assistant directors, two senior practitioners and three practitioners. The centres
are located in Kimberley, Kuruman, Calvinia, De Aar, Springbok, Upington and Postmasburg.
Constraints
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(a)
Lack of subsidised 4x4 vehicles for areas that are not reachable by any other
means. Areas mentioned were Noenieput, Mier, Van Zylsrus, etc. Most
inspectors can only afford a Toyota Tazz or a VW Golf.
(b)
Lack of facilities in remote areas.
(c)
Distances traveled by inspectors within the respective regions. The concern
expressed is that more time is spent on the road.
Proposals
(a)
The introduction of 4x4 mobile units can enhance service delivery in remote
areas. The introduced mobile units could serve as labour centres.
(b)
The DOL should investigate suitable affordable transport for level-five and
level-six inspectors.
Comments/Questions
(a)
Follow up on inspections conducted.
(b)
The timeframe set for filling vacancies.
(c)
Whether the DOL considered renting those 4x4 mobile units on an ad hoc
basis.
(d)
Whether the inspectors covered the inspection of seasonal workers.
(e)
How does the DOL envisage servicing areas that are not accessible as a result
of distances to be traveled?
(f)
What role does organised business play?
(g)
Progress on the integration of the inspectorate and learnerships in respect of
inspections.
(h)
Accessibility of CCMA offices.
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Responses
(a)
There have been successes in conducting follow-up inspections. Standards and
timeframes have been set. Such an exercise is done within a specific period.
(b)
All vacancies in the IES are in the process of being filled. All posts in the
inspectorate are regarded as critical.
(c)
The DOL is currently engaged in a special project of conducting inspections in
the agricultural sector. The approach of the DOL in purchasing 4x4 mobile
units is to assist inspectors in conducting inspections in remote areas.
(d)
The DOL takes the issues of seasonal workers and child labour seriously. For
example, a two-week blitz was conducted in the Kakamas area. The DOL is
currently consolidating a report on those inspections. Provincial structures have
adopted a collective approach in dealing with child labour.
(e)
Regarding vast distances to be traveled, more emphasis is put on planning so
that visits are conducted in almost all the regions. The DOL, however, is in the
process of servicing the Orange Valley area to ascertain what is happening on
those farms. Law enforcement is exercised where incidents are identified.
(f)
Agri SA and government departments, including NOCCI from organised
business, are role players who constitute the stakeholders’ forum.
(g)
In relation to the integration of the inspectorate, the national office deals with
the matter.
(h)
Regarding learnerships and inspections, the province is currently finalising the
curriculum and learning material for learners in each labour centre in the
province.
(i)
The offices of the CCMA are located closer to transport nodes, such as taxi
ranks.
(3)
ESDS
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This Unit is assigned the responsibility of enhancing employment and skills
development in the province.
Constraints
(a)
Shortage and capacity of computers;
(b)
Lack of space for learners;
(c)
Implementation of the NSFDIS;
(d)
Staff shortage;
(e)
Shortage of pool cars.
Remedial action
(a)
Write submission to the Business Unit Manager/Provincial Executive Manager
for new computers.
(b)
Siemens to install new server to increase the capacity and speed of old
computers.
(c)
The management to approve the submission on the allocation of office space.
(d)
The responsible Deputy Director-General to fast track the response on the
submission on the implementation of the NSFDIS.
(e)
The filling of existing vacancies of ESPs to be prioritised.
(f)
Feedback on applications for subsidised cars to be sped up.
Comments/Questions
(a)
Is the impact of the support on social projects assessed?
(b)
How well has the social plan been implemented?
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(c)
What is the attitude of the community towards the prison inmates who
underwent training on various skills? Does the latter receive capital to pursue
the acquired skills. How many get jobs after training?
(d)
What is the relationship between the DOL and the SETAs? What is the role of
the latter in reaching the remote areas, especially farms?
(e)
For how long have the noted constraints on service providers been
experienced?
(f)
How does the DOL assist the retrenchees?
(g)
To what extent does the DOL assist small business organisations?
(h)
Is the training provided based on the skills required in the labour market?
(i)
How has the consultation process progressed on the new National Skills
Development Strategy (NSDS)?
Responses
With respect to the consultation process on the NSDS, it was mentioned that issues
raised were compiled in a booklet. People were also given an opportunity to submit
verbal inputs.
Finding
No constraints were mentioned on the targets set on skills needed.
Recommendations
(a)
The DOL should provide a more comprehensive presentation on how the
scourge of unemployment could be alleviated.
(b)
Bottlenecks in the upgrading of computers should be identified.
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(c)
The DOL’s response to questions raised on this programme should be
forwarded to the Committee in writing.
(4)
Beneficiary Services
The approved budget for Unemployment Insurance and the Compensation for
Occupational Injuries and Diseases for 2004/05 amounted to R10 236m and R1 482 m
respectively.
Constraints
(a)
Major stakeholders are experiencing problems around the unemployment
insurance cheque payment method and the constitution of the regional appeals
committee.
(b)
Certain enquiry screens in the province relating to compensation for
occupational injuries and diseases were inaccessible.
(c)
Most staff leave the institution as a result of salary levels.
Remedial action
(a)
Introduction of the TEBA Bank A-card.
(b)
Shorten the Compensation for Occupational Injuries and Diseases Act enquiry
system through the implementation of the Safika Project.
(c)
The process of the regional committees is still at NEDLAC.
Comments/Questions
(a)
What mechanism does the DOL use to remedy the problem of non-compliance
with the Unemployment Insurance Act?
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(b)
What is the progress regarding reducing the delays in the processing of claims?
(c)
How will the introduction of the TEBA card help people in areas without
banking facilities?
(d)
How much is known about NEDLAC in the province?
(e)
How does the province ensure that it reaches its population, especially taking
into consideration that the province is predominantly Afrikaans-speaking?
(f)
Does the farming community form part of the main stakeholders covered? The
delegation wanted more information on the payments relating to adoption
benefits.
Responses
(a)
The farming community is one of the main stakeholders.
(b)
The duration of the claim process is 18 days, and the success rate of claimants
is almost 98%.
(c)
In relation to service points, the DOL is trying to reach all the areas.
(d)
The DOL acknowledged that NEDLAC is not well understood by the
communities.
(e)
The issue of the language policy is adhered to. Forms on the Internet are also
available in Afrikaans.
(5)
MSS
Out of 231 existing posts, 178 are filled and 53 are vacant. Of the 53 vacancies, 17 are
in the process of being filled.
Constraints
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(a)
Staff are poached by other provinces. It is a struggle to get disabled people in
all levels, especially at senior management levels.
(b)
There is lack of office accommodation.
Comments / Questions
(a)
What strategy does the DOL have to address the problem of office
accommodation? The Committee suggested a clustered approach, which
encompassed the use of Multi-Purpose Community Centres (MPCCs) to
alleviate this problem.
(b)
Are there any time frames set for filling the vacant posts?
Concerns raised by the Committee
(a)
The absence of disabled people at senior management levels in the DOL;
(b)
No mention was made of the relationship between the DOL and the Expanded
Public Works Programmes (EPWPs);
(c)
The under-representation of Coloureds and Whites in the DOL, and the Indian
representation that is not gender sensitive;
(d)
The issue of over and under-representation.
Responses
(a)
With regard to addressing the office accommodation problem, the DOL does
make use of MPCCs, especially for the inspectorate and the UIF. Agreements
were made with the Departments of Safety and Security, and of Justice to make
use of their offices.
23 AUGUST 2005
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(b)
Most disabled people in the province are at senior levels. The shortage lies in
middle management. Communication remains a problem as a result of
difficulties in getting service providers.
(c)
With respect to equity figures, the national office is over-represented by
Whites. The DOL is working towards getting provincial figures right.
Advertisements for vacancies are inclusive. There is a lot of poaching of
African and Coloured staff. The EE Forum targets the issue of Indian females.
The gender representation in the Northern Cape is estimated at 55% male and
45% female. In relation to time frames set on filling vacant posts, the DOL has
two months to finalise the matter.
(d)
On the issue of over and under-representation, the DOL has certain targets to be
reached.
(e)
The DOL is not involved in the co-ordination of EPWPs. Its role is only related
to training projects that are identified by the departments.
(6)
PPC Lime Mine
The Committee, accompanied by officials from the DOL, met with the management
and worker representatives. This mine has two divisions, namely, Barloworld and
Portland Cement, and produces both calcitic and dolomitic lime. It supplies 95% of
South African lime. The mine provides employment to 350 people, who are housed in
company and private accommodation.
The presentation included the following:
*
The background of PPC Lime;
*
Kambuku process;
*
Employment Equity;
23 AUGUST 2005
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*
Skills Development;
*
Learnerships;
*
Occupational Health and Safety (OHS);
*
The perception of employees.
Concerns raised by the Committee
(a)
The employment equity figures reflect a need for more White workers. Was the
Mining Charter covered by the figures? The DOL also raised a concern around
the employment equity categories. It expressed a need for a more substantive
approach and an interrogation of company plans and figures provided.
(b)
The presentation on OHS made no mention of occupational diseases.
Responses
(a)
The figures presented were derived from the Mining Charter. The supply and
demand of labour is an agreement between the employer and the employee.
(b)
The incident rate only applied to the injured. On the issue of occupational
diseases, an annual fitness test was conducted on all employees.
Questions
(a)
How organised are the workers?
(b)
Does the training provided extend to the community?
(c)
Are employees trained to reach higher levels?
(d)
Has the company had any retrenchments in the past? Is any assistance given to
the retrenchees?
(e)
Does the company have a health and safety committee?
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Responses
(a)
In relation to training, the community benefits through ABET programmes and
the bursary scheme provided.
(b)
A BEE-owned and controlled company has been established. PPC has shares in
the company.
(c)
The recent retrenchments occurred in April 2004. Each of the retrenchees was
offered R5 000 to register for training.
Recommendation
The DOL should facilitate that the Committee is provided with a comprehensive report
on employment equity, inspections, learnership programmes and diseases and injuries
at PCC Mine.
The Committee conducted an inspection of the invocom, mining and production areas.
5 October 2004
(1)
Sishen Iron Ore Mine
The Committee met with the management and labour representatives from the
Solidarity Union and the National Union of Mineworkers. Presentations covered labour
issues, wellness and HIV/AIDS programmes, and the UIF collection of levies.
The Committee commended Khumba for its role in training the unemployed. It also
acknowledged the conversion of hostels into family units.
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The Committee expressed a concern that the report given
lacked information on how the company transforms its
management structure, and its progress in meeting equity
targets.
Questions
(a)
Does the company have a health and safety committee?
(b)
What is the rate of disease, its nature and the number of persons discovered on
a monthly basis?
(c)
What happens to employees who get to a stage of being non-productive?
(d)
Was HIV/AIDS testing voluntarily or compulsory?
(e)
Are retrenched persons linked with community projects?
(f)
What time frames were set to meet employment equity targets on the placement
of disabled persons?
(g)
What is the percentage of TB in the area?
(h)
Who are the beneficiaries of procurement opportunities?
(i)
What yardstick does the company use to monitor compliance with labour
standards by subcontractors?
(j)
Are there any recreational facilities for employees and their families?
(k)
Does the company liaise with its counterparts to find alternative jobs for
retrenchees?
Responses
(a)
In relation to the rate of disease, the most common problems related to skin
sensitivity. These problems are caused by glue and dust in the mine. There are
23 AUGUST 2005
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regular instances of finger injuries. The company has an annual routine health
check of the entire body for every employee, as well as a six-monthly red-card
testing. There is also a follow-up lung function check-up every six months.
(b)
Identified non-productive persons are often accommodated on rehabilitation
projects and/or by changing jobs. In instances where the latter is not applicable,
an employee is put on a pension scheme.
(c)
The time frame set for employment equity targets is 2008. Those targets that
are not easy to meet will stretch to 2009. Consultation has taken place with
special organisations or persons to identify all positions suitable for the
disabled.
(d)
Training programmes on entrepreneurship skills are provided to retrenchees.
With regard to sharing information with other mines on the possible placement
of retrenchees, the company provides names of such incumbents to its
counterparts.
(e)
The company has a procurement policy in place. There is a provincial
screening committee that screens people who want to be contracted. All
contractors are rated in terms of a Black-owned or managed company. There is
an ongoing process of auditing contractors, and those who do not comply with
labour and internal laws will be dealt with accordingly.
Resolution
The Committee resolved that the DOL facilitates that the company provide it with
reports on nodal projects on irrigation and rice, the housing plan, the follow-up process
of rehabilitation, and the company’s procurement plan.
The Committee also conducted an inspection of the ABET Skills Training Centre.
23 AUGUST 2005
(2)
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Labour Centre - Kuruman
The delegation, accompanied by the Provincial Executive Director, met with staff from
Kuruman Labour Centre. The City Manager of Kgasigonyane Municipality welcomed
the role players.
The DOL presented a report that covered the period 1 July to 30 September 2004. The
Committee noted that there were only two inspectors to service the vast region.
The briefing covered client services, inspection and enforcement, employment services,
service providers and problems encountered and challenges faced.
Client services
A total of 760 domestic workers were registered during the period July to September
2004. An amount of 108 unemployment insurance claims were paid up. A total of 89
complaints were resolved at client services.
The constraints experienced are due to incomplete information provided by employees
about their employers. Such cases are referred to IES.
(3)
IES
Out of 35 inspections conducted during this period, 25 were finalised. A total of 53
blitz inspections were conducted in the domestic worker sector.
Problems encountered
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(a)
Most employers did not conduct the risk assessment and were issued with
contravention notices;
(4)
(b)
Transport for inspectors;
(c)
Untraceable employers;
(d)
Foreign business people, especially in the wholesale and retail sector.
Employment Services
During the current financial year, an amount of R2 175 million was approved for the
following projects:
(5)
(a)
Kgalagadi Dipudi Co-operative Enterprise
(b)
Livestock improvement & production projects
(c)
Kgalagadi integrated energy centre
Service providers
Out of five service providers, only two were registered. Three were in the process of
registering. Most service providers were in the catering and cleaning sectors.
(6)
The Committee commended the DOL on its report.
It raised a concern about the number of inspectors, the
vastness of the area to be serviced, and the issue of
foreign business people who are claimed to be taking over
businesses in Kuruman.
Questions by the Committee
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(a)
Is there an organisation that represents domestic workers in the region?
(b)
What is the percentage of untraceable employers and unemployed people?
Responses
(a)
The majority of domestic workers is not organised. The DOL deals with most
of their cases. CAWU sometimes gets involved.
(b)
The unemployed in the region is estimated at 50-60%. The DOL, however, is
currently creating a database for employers. The information captured on the
database would reflect the number of employed people.
(c)
The DOL, together with the provincial office, is working on a strategy to deal
with untraceable employers. The DOL is embarking on the Siyaya project for
beneficiary services. Such a project will link employers to the database and to
SARS.
(d)
With respect to foreign business people, the concern is the language barrier.
This results in a communication problem.
(e)
A number of training programmes are provided to the disabled to enable them
to start their projects. Most disabled people in the Kgalagadi area had received
computer literacy and business skills training. Some were absorbed into the
local municipality. Others relocated to regions where chances of employment
were good.
(f)
The Committee noted the problem of the shortage of computers and transport.
It was suggested that the general lack of resources should be quantified from
time to time.
Resolution
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The DOL should provide the Committee with reports on the stakeholder profile, the
cause of such high vacancy levels, and how it hopes to deal with that problem, as well
as a report on learnerships and child labour.
(7)
Vryburg
The Committee met with the Provincial Executive Manager: Mr A Makaphela,
managers and staff from the Vryburg and Taung Labour centres.
Challenges raised
(a)
There is a need to intensify the advocacy approach in farm areas as most of the
people are vulnerable.
(b)
There is a need to enhance co-operative governance.
(c)
In respect of cross-border servicing, many cases that come to Taung are
referred to Kimberley. This affected service delivery and turnaround time.
Questions
(a)
What is the level of compliance by employers?
(b)
Has the DOL approached the Department of Home Affairs (DHA) regarding
the problem of foreign business people?
Responses
(a)
There is a decrease in the prosecution mechanism. Reports from team leaders
reflect a 50-70% compliance. The situation has improved since inspectors had
been provided with subsidised vehicles. The capacity given to inspectors has
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had a positive impact on the operations. There are employers though who do
not comply. The DOL is of the view that if procedural process can be reduced,
the situation can improve even more. There is a need to get other partners on
board, such as the Department of Trade and Industry (DTI). The route taken to
prosecute foreign business people who flout the law is too long. There is a need
to engage DTI to check the issuing of licenses. The legislative framework
makes it difficult for the DOL to intervene in assisting local business people.
(b)
The DHA was contacted regarding some Pakistanis who were inside the
country illegally. The legislative framework does not make it easy for the DOL
to intervene in cross-border labour migration.
Recommendations by the Committee
(a)
The focus in addressing the problem of foreign business people should be on
checking compliance with South African laws.
(b)
There is a need for politicians to engage other colleagues on the matter.
(c)
The DOL should interact with municipalities that issue licences willy-nilly. A
report on such interactions should be made available to the Committee.
Parliamentary Constituency Offices should also be used to circulate those
reports.
(d)
The Committee should investigate the procedural impediments in the
prosecution of foreign business people who do not comply with legislation.
(e)
The Committee should look into the issuing of licences.
Questions
(a)
How often does the DOL meet with worker representatives?
(b)
How does the DOL deal with closure of mines?
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Responses
(a)
SACCAWU is an active union in the region. There has been a concern that
most of its members are losing their cases.
(b)
The issue of rehabilitation happens as soon as the Department of Minerals and
Energy issues a mine closure certificate.
Resolutions
(a)
The Committee feels that there is a need for the DOL to ensure good relations
with the Department of Minerals and Energy, especially on issues such as the
closure of mines and mine rehabilitation.
(b)
The Committee requested that it be provided with what was reported on in
writing.
6 October 2004
North West Provincial Office
The Committee met the staff in the provincial office and received a briefing from the five
business units, namely, MSS, LMIS&P, BS, IES, and ESDS. Each presentation was based on
achievements and challenges.
(1)
MSS
The core business of this unit is to render support to business units. It is responsible for
safety and security and the administration of IT services.
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Challenges
(2)
(a)
Commitment of staff;
(b)
Lack of sense of urgency among certain staff members;
(c)
Getting buy-in from staff to support the DOL’s initiatives;
(d)
Effective communication.
Business Services
Challenges
(a)
The long turnaround time in the payment of claims;
(b)
Employers who change their addresses continuously;
(c)
Companies that have been liquidated;
(d)
Untraceable employers;
(e)
Incomplete information supplied by companies.
Solution
As a solution to the long turnaround time in the payment of claims, the Province formed
a team to look into its processes. This resulted in the reduction in turnaround time by
92%. The is participating in Compensation Commission workshops directed at the new
processes that will reduce backlogs.
(3)
IES
The presentation covered inspections and enforcement, and compliance.
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Challenges
(a)
The protocol inhibits effective inspection;
(b)
Access to farms, if no prior arrangements were made;
(c)
Delays in the processing of cases by the Labour Court;
(d)
Lack of knowledge of legislation of the DOL by the Labour Court;
(e)
Accessibility to private household by inspectors.
In relation to the protocol problem, Agri SA needs to provide the DOL with its
members’ names and contact details. It is sometimes difficult to establish where a
certain farm is located. Not all farmers are members of Agri SA. This would make it
difficult for the DOL to identify farms.
Questions raised by the Committee
(a)
Was it possible for DOL to use the same inspectors to fight the backlogs?
(b)
Does the DOL conduct inspections at employment agencies to monitor
compliance?
(c)
What are the experiences of inspectors on casualisation?
Response
(a)
There has been a concern that putting too much responsibility on the inspectors
could compromise the quality of inspections.
(b)
The Province has no problems although it is not strong economically. Most
problems related to subcontracting in the mining sector.
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(c)
Most employers use casualisation to escape their social responsibility. This
practice is common with big enterprises, such as Pick n Pay, Checkers, etc. The
wholesale and retail sector remained a problem.
The Committee sought clarity on the commitment of the DOL to ABET and raised a
concern about the environment in which people in the provincial office worked, as well
as the vacancy levels of inspectors.
(4)
ESDS
The ESDS is a public employer agency and a skills development facilitator and
implementer in the second economy.
The ESDS unit budgeted R27 million for training the unemployed. However, 2 452
persons were trained and placed in income-generating entities. Out of the trained
incumbents, 1% was from the disabled. There was a need to increase the intake of the
disabled in order to meet the 4% target set.
Challenges
(a)
The cross-border labour migration in the Britz area;
(b)
The visibility of SETAs in the Province to escalate consciousness and intake of
learners into learnerships. The PSDF tried to engage sectors such the mining
and agriculture, although they were reluctant;
(c)
The relationship with the private sector is weak;
(d)
The issue of leadership and ranks remained a problem. There was a need to
upgrade the structure of the department;
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(e)
Changing the IT system to a secure one would ensure that there was a
decreased chance of fraud;
(f)
The challenge in assisting retrenchees according to the social plan is around
companies that do not inform the DOL of intended retrenchments;
(g)
Privileged service providers were still in the monopoly. The challenge is for the
emerging service providers to undergo training in order to be linked with the
SETAs;
(h)
There was a problem with government departments who did not comply with
legislation.
Way forward
(a)
A meeting with the farming community and DHA officials around the Britz
area should be convened.
(b)
An all-sector consultative meeting with business and the SETAs in the
Province will be convened
(c)
Employers were encouraged to register with SETAs in order to claim grants.
Questions
(a)
What is the average period of placement after completion of training?
(b)
How many disabled people have benefited from the bursary fund and the list of
projects that have been funded?
(c)
Do foreigners benefit from the DOL’s social plan?
(d)
Is success achieved in the area of the social plan, and the training of people
who have been laid off? Were various sectors of the economy engaged in this
endeavour?
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Responses
(a)
The average period of placement could be three months. Employers often come
to the labour centres to seek workers.
(b)
The bursary fund is centralised in Pretoria. The role of the Province was to
sensitise people with disabilities to apply and to make recommendations. The
Committee would be provided with the statistics. The Committee noted the
issue of training providers who do not include disabled persons in their
training. It suggested that the department look at the matter when contracts
were issued. In relation to training, the Province was of the view that there was
a need to monitor the aftercare of people after training.
(c)
According to its policy, the DOL does not engage in the training of foreigners.
It only gets involved in providing services in cases of retrenchments, for
example through counseling. The issue is still being debated within the DOL.
(d)
The successes in terms of the social plan depended upon all departments, and
the Department of Provincial and Local Government should assist. In addition
the ESDS unit had agreed that labour centres needed to identify all vulnerable
sectors and be encouraged to team up a structure where there was an impending
retrenchment.
Concern raised by Committee
The Committee was concerned about the non-visibility of SETAs. However, a meeting
had been organised by the DOL to address the matter, including the impact of SETAs.
Clarity sought by Committee
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The Committee sought clarity on whether the employment equity report fell within the
ESDS domain. The response given was that although this is not its area of work, skills
development could not be divorced from employment equity.
Questions
(a)
Was training provided and skills development related to market demand? How
did cross-border migration affect the local employment?
(b)
Are problems experienced as result of employment agencies recruiting people
to work outside of country?
Responses
(a)
Training was based on the demand on the ground. In relation to cross-border
migration, there were employers, especially in the agricultural sector, who were
taking advantage of the legislation.
(b)
No problems were raised. There were 13 employment agencies in the Province.
This made it easy for the DOL to monitor.
Visit to farms
The Committee, accompanied by the departmental officials, visited two farms and interacted
with farmers, farm workers and a domestic worker.
(1)
Liliesfontein Farm
Findings
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(a)
Workers worked for eight hours a day, and were paid according to the
minimum wage. Some workers worked overtime.
(b)
The rate of illiteracy was high.
(c)
Workers were not aware of their rights. In most cases they received information
through correspondence sent to the employers.
(d)
In cases where the employer paid for the medical expenses of employees, the
former reclaimed the money. Dependants were not covered in such
arrangements.
(e)
Part of the deal during the start of employment was that one of the benefits
would be groceries and meat. The current situation showed that they received
groceries without meat.
(f)
Each family had a four-roomed electrified house.
(g)
In the event that workers had complaints, arrangements were made for the
employer to meet with all of them.
(h)
Families should report when expecting visitors.
(i)
Spouses of other employees got casual jobs on the farm.
Recommendations by Committee
(a)
In relation to housing, employees should be encouraged to access government
grants so that they could have their own houses.
(b)
Employees should be capacitated so that they could consider having their own
farms and be self-sustaining.
(c)
Employers should do something about the level of illiteracy through ABET
programmes.
Responses and concerns from the employers
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(a)
Workers resisted the advice given by employers.
(b)
Transport for school-going children was a problem.
(c)
The minimum wage has caused some retrenchments as farmers could not afford
to pay the employees at the promulgated rate.
(d)
There were good relations between farmers and their employees, except in
isolated cases where employers mishandled employees. Those cases were
published in the media, and not all of them involve farmers.
(2)
Drassybend New York Farm
Findings
(a)
Employees received a minimum wage of R770.00 per month and a pay slip.
(b)
Workers also received a 10% annual increase, 12 days’ leave and a bonus of
R1000.00.
(c)
Employees were responsible for their medical care. In some cases they had to
find their own way to reach medical facilities.
(d)
Workers were not aware of their rights. In most cases they received information
through correspondence sent to their employers. No one came to educate or
inform workers of things to look for.
(e)
The money that should be paid for overtime was not reflected on the pay slip.
(f)
No formal disciplinary hearings took place - the employer and employee
resolved their problems.
(g)
The level of illiteracy was a cause for concern.
(h)
The workers were aware that the existing laws have brought positive changes.
(i)
Ablution facilities, such as the toilet, were located in an awkward position and
were not in good order.
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(j)
The Committee noted with great concern that there was still a lack of advocacy
among farm and domestic workers. It was also concerned that facilities, such as
toilets, were not in good condition.
Recommendations
(a)
Employers should look into the possibility of improving toilet facilities for
employees.
(b)
Employers should address the issue of transport when employees are sick,
rations should include meat and overtime payments should be reflected on pay
slips.
(c)
Illiteracy should be addressed through ABET programmes.
Responses from employers
(a)
Employers tried to comply with the new laws and often attended training on
labour issues.
(b)
Workers had the privilege of buying sheep at a cost of R200.00.
(c)
The new laws make it difficult for employers to institute disciplinary actions.
(d)
Deductions are based on the loans made to employees.
(e)
Landlords often exploit farm workers on rentals they pay for their children who
attend school away from the farm.
(f)
Working hours differ according to seasons.
(g)
The inspector from the DOL alluded to the fact that the minimum wage has
affected seasonal workers. There is a need to review and amend the legislation
to address this problem.
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The Committee noted that there was a level of compliance with the law by employers.
An appeal was made to employers to re-instate paying above the minimum wage.
Workers who received training on certain skills should receive more than the minimum
wage.
7 October 2004
Presentation by North West Provincial Skills Development Forum (NWPSDF)
The NWPSDF was a strategic forum set up to identify skill needs in the Province. It comprises
provincial government departments, the Premier’s Office, organised labour, non-governmental
organisations (NGOs), and academic institutions.
The Committee received briefings from the following stakeholders: Office of the Status of
Women (OSW), SANGOGO, the Disability Group, Umsobomvu Youth Fund and government
departments
(1)
NWPSDF
(a)
NWPSDF members needed training on their responsibilities.
(b)
ABET centres are flooded by matric repeaters who are not where they are
supposed to be. Those centres are unable to offer subjects such as physics.
(c)
There was also a problem of mainstreaming further education and training
(FET) since matric repeaters flooded that area.
(d)
There are problems that resulted from the merger of academic institutions,
especially that some institutions had to be transformed.
(e)
In respect of using funds contributed by the DOL, such funds were centralised,
and therefore institutions that were supposed to access them did not.
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(f)
(2)
Young people were still caught up in the idea of being academics.
SANGOGO
(a)
Most members of NGOs bear the brunt of service providers who were not
accredited.
(b)
There was no guarantee of placement after training.
(c)
Service providers designed training material without consulting the people.
(d)
Most often skills acquired from training were not recognised.
(e)
There was a gap between the curriculums provided by educational institutions
and the skills required by the market.
(f)
There was a need for an integrated skills development approach that would
address the problem.
(3)
COSATU
(a)
There was a gap between the schools and skills training.
(b)
There was a proliferation of ABET centres throughout the province.
(c)
Skills development initiatives did not benefit the people on the ground.
(d)
As a result of the nature of the province, there was a need to identify skills in
which people should be trained.
(e)
The vast number of people were not aware of the existence of the NWPSDF,
legislation, training programmes, outcomes of the GDS and how to access
learnerships. The plea was that the information should filter down to the people
on the ground.
(4)
UYF
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(a)
The UYF had embarked on projects that involved recruits from the province.
Efforts should be made to enhance their visibility in the province.
(b)
National organisations were mostly based in Gauteng.
(c)
The UYF was in process of appointing a provincial co-ordinator to ensure
sufficient integration of efforts.
(d)
There has been a vacuum between national and provincial levels.
(e)
The UYF was conscious that there should be an equitable distribution of
resources within the province.
(f)
A submission on the review of the NSDS was made to the DOL.
(g)
The UYF was working with the DOL through the labour centres as access
points for youth who wanted to access its services.
(h)
The UYF was also working within the FET arena to enable young people to
acquire skills according to the needs of the province. Four FET institutions
were due to get funding to the value of R6m in this regard.
(5)
Youth Commission
The Commission has participated in the process of developing learnerships that would
be implemented by the public service. It was concerned that the province would not
respond proactively to the learnerships.
The Commission was also concerned about the commitment from government and the
poor co-ordination of activities that took place amongst the youth structures. Its view
was that the integration of various youth organisations would exonerate the youth from
this poor co-ordination. For the Commission, the issue of public service learnership
programmes warranted political intervention.
(6)
Disabled persons
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Oral submissions were received from the North West Council for the Blind, the Ikageng
Self Help Project and the Deaf Federation of the North West.
Findings
(a)
According to the disabled groups, statistics reflected that since 2002, almost 1,
2 million disabled people have been unemployed.
(b)
The other form of discrimination was the inaccessibility to facilities.
(c)
Disabled people, especially from the deaf community, experienced problems
when accessing public facilities such as hospitals. In most cases there was no
interpreter to assist with sign language. It was suggested that support relating to
sign language and interpreters be strengthened.
(d)
Most people from the deaf and blind communities were unemployed.
(e)
Most institutions when approached to assist the disabled claimed that they did
not have people to assist.
The DOL was requested to monitor equity and affirmative action when the disabled
applied. There was a plea for the DOL to intervene in problems raised by the disabled
communities.
There was also an appeal for government to employ sign language interpreters to work
in various offices.
The Committee wanted to know how many disabled persons were employed and
whether they were happy. The provincial Department of Sport, Arts and Culture
(DSAC) acknowledged that sign language interpretation was a scarce skill. It conceded
that there has been a problem in training due to the unavailability of necessary
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equipment. It was suggested that SETAs ensure that service providers during the tender
process undertake to have the necessary resources to cater for the blind.
The DOL alluded to the fact that the Health and Welfare SETA funded registered
projects to train employees from the disabled sector. Five trainees from the province
benefited from that project. Out of the 16 disabled people trained in computer skills,
eight were deaf.
Comments/concerns by the Committee
The Committee noted with great concern that service providers did not always have the
necessary resources and/or equipment to cater for the disabled. It also observed that
there were no funds allocated to projects for the disabled. The Committee emphasised
its role in monitoring and ensuring that the existing laws are implemented. The DOL
realised that although not much had been done in respect to the disabled, there was
progress and room for improvement.
(7)
OSW
The OSW registered a concern about the institutional arrangements pertaining the
gender focal areas in the DOL and its status in the appointment of the gender coordinator in the province.
Response
The DOL does have gender focal people at provincial offices and labour centres. The
provincial office kept close contact with the Gender Desk in the Office of the Premier.
23 AUGUST 2005
(8)
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Department of Agriculture, Conservation and Tourism
A concern was raised that there was no SETA that catered for conservation since the
North West Province was a prime conservation area. A request was made to the UYF to
assist in encouraging the youth to get into the mainstream of conservation.
(9)
Siyasa Security Industry (SSI)
The majority of members of this organisation are employers who are in support of the
skills training and empowerment. SSI was of the view that the Skills Development Act
needed to focus on training people to be entrepreneurs, and that there was a need to
pilot projects that were meant to empower people. SSI was concerned about SETAs that
were sitting with surpluses on discretionary grants.
Recommendations by the Committee
(a)
The Committee should be provided with a report on projects and programmes
in which stakeholders were engaged.
(b)
A skills audit should be conducted in the province.
(c)
The NWPSDF should identify other stakeholders, including Parliamentary
Constituency Offices, to assist in the dissemination of information.
(d)
It should be provided with the information about the regularity of the meetings
of the NWPSDF.
(e)
(10)
CCMA
It was crucial for members of the NWPSDF to be empowered.
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The Committee met with Mr Kekana, Head of the CCMA in Klerksdorp.
One of the achievements highlighted was that the organisation had since managed to
stabilise the labour market and had succeeded in its endeavour to make a paradigm shift
from the old system.
Challenges
(a)
There were limited resources and facilities. The organisation cannot dictate on
facilities to be provided. The province was faced with the problem that eight
commissioners had to use five rooms in Rustenburg. The CCMA was unable to
address those challenges as a result of resources.
(b)
There was a shortage of commissioners. There was a need for three to five
additional commissioners.
(c)
There was an infiltration by consultants. The sophistication of parties made it
impossible to handle cases speedily. However, with better resources people
could be serviced optimally.
Questions/comments by the Committee
(a)
Was there any relationship between the CCMA and the PCOs in the province?
(b)
Were cases brought to the CCMA by domestic workers mainly as a result of
victimisation, and how aware are they of their jurisdiction?
(c)
Was there a database of people whose cases were referred by CCMA to the
Labour Court?
(d)
How frequently was the call-up process used?
(e)
What was the level of case reviews?
(f)
More clarity was sought on the enforcement of awards by the CCMA.
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(g)
How did the CCMA deal with cases that took place on the shop floor?
(h)
Was the shortage of Commissioners the result of poaching?
(i)
The Committee registered its concern over the issue of vulnerable workers who
were not unionised, and the disability sector that was characterised by unfair
labour practices.
Responses
(a)
The CCMA acknowledged that it had no structured relationship with PCOs. It
did have a relationship with the paralegals that operated through the advice
offices, the DOL and heads of the labour centres. It has just established a
relationship with the Department of Land Affairs on evictions. Commissioners
have been capacitated to deal with such cases. No relationship had been
established with the South African Police Service (SAPS) as yet.
(b)
The impact of the minimum wage resulted in the dismissal of some domestic
workers . However, the common type of victimisation may be related to people
living with HIV/AIDS. The other problem was that domestic workers did not
become organised. This, however, made it difficult to train them so that they
could become aware of the services rendered by the CCMA.
(c)
There was a database of enforcements and reviews that was sent to the Labour
Court. However, the legal officer who was dealing with a particular case did
not keep in contact with the worker until the CCMA received an outcome from
the Labour Court.
(d)
The call-up process was meant to assist in the backlog in processing of cases.
(e)
Ten percent of referred cases go for review. About 80 to 100 cases handled
monthly-required arbitration.
(f)
The enforcement of awards to domestic and farm workers remained a problem.
The difficulty lay with the enforcement of a writ of execution. The CCMA felt
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that although the amendments had assisted, the issuing of the writ of execution
remained a problem.
Recommendations by the Committee
(a)
The CCMA and the DOL should agree on issues that required education and
advocacy.
(b)
A follow-up report that reflected cases, their profiles, for example domestic,
farm and mine workers, should be forwarded to the Committee.
8 October 2004
Meeting with Labour Market Co-ordinating Forum (LMCF)
The Committee also met with stakeholders of the LMCF in Klerksdorp.
(1)
Education and Labour Institute
Concerns raised
(a)
Not enough was done in consultation with the public representative bodies on
legislation. An example was the consultative process during the sectoral
determination on the minimum wage.
(b)
The interpretation of legislation was not the same.
(c)
Cases took a long time to be processed.
(d)
Public hearings were not formulated in such a way that the public was able to
make an input.
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Recommendation
The time taken to resolve cases in the Labour Court needed attention.
(2)
FEDUSA
FEDUSA appreciated and acknowledged that organised labour had access to
legislators. An appeal was made for an amendment so that there could be a reason for
conciliation not to take place.
Concerns raised
The Labour Relations Act (LRA) did not give direction to most employers on prearbitration. Certain sections in the LRA required the CCMA to use minimal powers.
Recommendation
Access to the Labour Court should be strengthened.
(3)
Afrikaanse Handelsinstituut (AHI)
Concerns raised
(a)
People did not receive notices on time, which resulted in employers being
served with execution orders;
(b)
Access to the Skills Development Fund;
(c)
Client service process at the CCMA.
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Responses by CCMA
(a)
The CCMA acknowledged the limitation of resources, and that there is a need
to look into intensifying the area of learnerships. A suggestion made was that
the office should look into a possibility of utilising the facilities of the DOL.
(4)
(b)
The servicing of notices differs from the High Court.
(c)
The execution of the writ is the same as the process in the High Court.
COSATU
COSATU acknowledged the role played by the DOL and the CCMA.
Concerns raised
(a)
COSATU was concerned about processes relating to Labour Court cases,
especially farm worker cases.
(5)
(b)
Casual workers did not benefit from the Basic Conditions of Employment Act.
(c)
NEDLAC did not do enough to ensure that skills development was enhanced.
Black Management Forum
Concerns raised
(a)
Women and the disabled were not represented well.
(b)
The South African Revenue Services did not do enough to assist people in
filling in the tax returns.
(c)
Queues in the grants payment pay points were too long.
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(6)
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NAFCOC
NAFCOC acknowledged the DOL for the legislation that was in place.
Concern raised
The DOL had not done enough in driving poverty alleviation programmes.
(7)
SACWU
SACWU acknowledged the CCMA for empowering stakeholders through user forums.
It was suggested that these forums be extended to other regions.
Concern raised
Only organised bodies benefited from the publicity of laws. There was a need to
improve the role of the public broadcaster in order for the information to reach all the
people.
Recommendation
Legislators should monitor the implementation of legislation.
(8)
CCMA
Concerns raised
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(a)
Commissioners operated on a stringent budget, while having to deal with many
cases.
(b)
Grounds for review according to the legislation was very narrow, and was
being widened by the Court. This was an area that needed to be tightened.
(c)
Bogus trade unions wes a cause for concern. However, the registration of
employee organisations needed to be looked at.
(9)
Media briefing
The Committee held a media briefing with the SABC at the CCMA offices in the North
West Province.
(10)
Recommendations
(a)
The Committee report should be sent to the DOL and to the two provinces
concerned.
(b)
The Committee should raise the concerns that arose from the visits with the
DOL.
3. Report of the Portfolio Committee on Environmental Affairs and Tourism on Visit to Koeberg
Nuclear Power Station, dated 21 June 2005:
1.
Background
As part of conducting an oversight function, a multi-party delegation of the Portfolio Committee on
Environmental Affairs and Tourism visited the Koeberg Nuclear Power Station in Western Cape on
the 19th of January 2005.
1.1 Objective
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The main objectives of the visit was to examine and evaluate how Koeberg Nuclear Power Station
deals with environmental safety and learn about its internal business operations.
1.2. Delegation
A multi-party delegation from the Committee under the leadership of the
Chairperson, Ms E Thabethe (ANC) included Mr. J Combrick (ANC), Ms N
Khunou, (ANC), Mr. J Arendse (ANC), Ms MM Ntuli (ANC), Ms R Ndzanga (ANC), Mr. A
Mokoena (ANC), Mr. S J Maja (ANC), Mr. DAA Olifant (ANC), Mr. G Morgan (DA) Ms J Semple
(DA), Ms C Zikalala (IFP), and Mr. LW
Greylling (ID).
The Committee Secretary, Mr. T Manele, Ms S Sixaso, Secretary to Chairperson
and Mr. J Durand, Parliamentary Liaison Officer, from the Department of
Environmental Affairs and Tourism, accompanied the delegation.
1.3. Reporting
Having conducted its oversight visit to Nuclear Power Station on the 19th of February 2005, the
Committee to report as follows:
2. Arrival at Nuclear Power Station
On arrival, the Acting General Manager Mr. P Prozesky welcomed the
delegation and proceeded to outline the programme of the oversight visit that included the briefings
on the nuclear cluster, the safety and performance programme, the role and involvement of Eskom in
Pebble Bed Modular Reactor (PBMR), and the tour around the station.
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2.1. Nuclear Power Station Cluster
The General Manager of Eskom Nuclear Cluster, Dr R Pillay, briefed the delegation on the cluster’s
activities. The presentation focused on the role of Koeberg in national grid, nuclear fuel cycle, the life
expectancy of the plant emergency planning, long- term health effects and human resource
challenges.
2.1.1. Potential Health Effect
According to Dr R Pillay, the primary driver of any health effect is dose. This public dose is therefore
perceived as an important measurement of Koeberg Nuclear Power Station’s environmental
management system. The examples of these doses includes comparative dose such as chest X-ray,
transatlantic flight, cup of coffee and glass of beer.
2.1.2. Emergency Planning
Koeberg Nuclear Power Station has developed an emergency plan whose objective is to protect its
staff, general public and, the environment from potential harmful effect of emergency situation at
Koeberg.
2.1.3. Protective Actions
The main protective actions used by Koeberg Nuclear Power Station include, public notification,
evacuation, sheltering, thyroid protection, zone isolation, reallocation and, food banning.
2.1.4. Human Resource Challenges
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As nuclear skills are very specific and its creation and retention is also vital, the organizational human
resource challenge facing them is a need to develop a national nuclear skills programme that will
ensure the implementation of PBMR and other related nuclear matters.
3.
Safety and Performance
The Manager of Safety and Performance Evaluation, Mr L Tyabashe, briefed the delegation on
organizational safety and performance programme. The main focus of the presentation was on plant,
operation and safety, performance and waste management.
3.1 Waste Management
The delegation was informed that the organisation manages different kinds of waste. The types of
waste mentioned included the low level waste such as gloves, plastic and paper, coal and, high level
waste such as filters, non-compactable waste, resins and concentrates that are all safely stored in
Vaalputs Storage Facility.
4. Eskom Role in Pebble Bed Modular Reactor
The Senior Manager of Stakeholder Management, Mr. T Stott briefed the
delegation on organizational programme of the Pebble Bed Modular Reactor. The presentation
focused on an overview, client and investment roles and feasibility study on Pebble Bed Modular
Reactor.
4.1. Client Role in Pebble Bed Modular Reactor
The Generation Division of Eskom is responsible for client role in PBMR. In June 2000, application
for Environmental Impact Assessment (EIA) was submitted to the Department of Environmental
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Affairs and Tourism and subsequent to that a consortium of independent consultant was appointed to
perform an Environmental Impact Assessment.
The consultation process around EIA included extensive public participation, with numerous
interaction and public meetings and, extended periods for comments during scooping and EIA phases.
In October 2002, a final report on environmental impact assessment was submitted to the Department
of Environmental Affairs and Tourism. In June 2003, the Director–General of the Department of
Environmental Affairs and Tourism issued a positive record of decision.
4.2. Eskom Pebble Bed Modular Reactor Process
In developing its PMBR programme, Eskom invited international partners to contribute funding,
technical expertise, international stature and credibility. In 2001, a feasibility study was conducted
with 22.5% contribution of British Nuclear Fuels Industry, 12.5 % by Exelon, 25% by Independent
Development Corporation (IDC) and 40% by Eskom. In 2001, draft feasibility report on Eskom’s
PBMR was completed. Exelon has since withdrawn from the project. PBMR (Pty) Ltd is currently in
negotiation with potential invertors to replace Exelon.
5. In-House Tour
As part of developing an understanding on how Koeberg Nuclear Power Station operates, the
delegation conducted an in-house tour to areas such as the Turbine Hall, the Low Level Waste Store,
the Emergency Control Centre, the Unit Control Rooms and, the Fuel Pools Unit.
6. Conclusion and Recommendations
Having conducted an oversight visit to Koeberg Nuclear Power Station on the 19 th of January 2005
and being briefed on organizational activities related to the PBMR, waste management, safety
23 AUGUST 2005
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planning and, human resource challenges, the Portfolio Committee on Environmental Affairs and
Tourism concludes and recommends as follows:
6.1. Noting that Koeberg Nuclear Power Station has developed emergency plan to ensure that it does not
have an environmental safety problem, it is recommended that the Portfolio Committee wishes to be
briefed from time to time on environmental management polices and mechanisms; and
6.2. Also noting that Koeberg Nuclear Power Station has conducted a feasibility study on PBMR
programme, it is further recommended that the Portfolio Committee should call relevant section
within the Department of Environmental Affairs and Tourism to brief members on the findings of the
feasibility study.
FRIDAY, 24 JUNE 2005
TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
THE SOUTH AFRICAN PARLIAMENTARY
OBSERVER MISSION
REPORT ON
THE 2005 ZIMBABWE PARLIAMENTARY ELECTIONS
31 MARCH 2005
23 AUGUST 2005
PAGE: 194 of 644
PLEASE NOTE:
A Supplement to this Report, containing the delegation’s observation of the Zimbabwean political
background, the legislative framework and the electoral process, is available in the Office of the Clerk of
the Papers.
REPORT ON
THE 2005 ZIMBABWE PARLIAMENTARY ELECTIONS
Contents
Introduction
The objectives of the Report
The nature, context and method of work of the mission
The pre-election period
Work and deployment of observers
Report submissions
Events and meetings
Political climate
Violations of the Electoral Law
Compliance with SADC guidelines
The media
Overview of the pre-election period
Preliminary conclusion
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Polling Day
Introduction
Voting
Counting
Conclusion
Recommendations
INTRODUCTION
On the 31st of March 2005, the Republic of Zimbabwe held her sixth Parliamentary General Elections since
Independence on 18 April 1980.
Following an invitation to the Republic of South Africa to send observers to witness these elections, Parliament
constituted a 20-member delegation, (hereinafter referred to as the Mission), under the leadership of the hon M
T Goniwe, with the mandate of observing the 2005 Zimbabwe Parliamentary Elections.
The Mission was constituted for purposes of:
(a)
Assessing whether conditions in Zimbabwe allowed for the conducting of elections that would
demonstrate the general will of the Zimbabwean electorate;
(b)
Assessing whether Zimbabwean voters would have sufficient freedom to cast their votes in secret;
(c)
Assessing whether the elections were conducted within the context of the Zimbabwean Constitution and
the electoral legislative framework;
23 AUGUST 2005
(d)
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Assisting the people of Zimbabwe, within the context of the African Renaissance, the African
experience and reality, to hold successful parliamentary elections.
In brief, Parliament tasked the Mission to, on its behalf, observe, support and work together with the people of
Zimbabwe as they prepared and exercised their democratic right to elect parliamentary representatives of their
choice.
THE OBJECTIVES OF THE REPORT
The Report seeks to indicate:
1.
Whether the purpose of the Mission was achieved;
2.
Whether in doing so, the Constitutional and legislative framework of Zimbabwe was adhered to;
3.
Whether, in our view, the will of the people of Zimbabwe has been demonstrated through the elections;
and
4.
The extent to which our conclusions are based on verifiable data that is presented concisely - including
possible recommendations.
THE NATURE, CONTEXT AND METHOD OF WORK OF THE MISSION
1.
The Mission was a united delegation representing Parliament and the people of South Africa. The
Mission was constituted by the Parliament of the Republic of South Africa in order to allow South
Africans, through their representatives, to play a role in supporting their Zimbabwean neighbours to
exercise freely their democratic right to choose their parliamentary representatives.
2.
In addition to being a Mission of the South African Parliament, the Mission’s outlook was also
informed by the regional context in which both Zimbabwe and South Africa are members.
23 AUGUST 2005
3.
PAGE: 197 of 644
More significantly, for South Africa, the parliamentary elections in Zimbabwe have a bearing on the
continent’s political and economic initiatives represented by, inter alia, the African Union and its
development programme, NEPAD.
4.
The parliamentary elections, therefore, took place at a crucial moment in the history of the African
continent.
5.
A further circumstance characterizing the current political environment with regard to Zimbabwe, is the
hostile international and regional media environment, which is grossly biased, prejudiced and partisan
against the government. State print media is, on the other hand, pro-government pro-ruling party.
6.
In the execution of its mandate, the Mission recognized the sovereignty of the Zimbabwean state and
observed the elections in an independent and non-partisan manner.
7.
The Mission observed all aspects of the elections, beginning with the pre-election period, polling day
and counting, as well as the political mood after the elections.
8.
The Mission familiarized itself with the Zimbabwean electoral processes, laws, regulations and the
Constitution of the land, obtaining relevant information from electoral bodies including the Electoral
Supervisory Commission (ESC) and the Zimbabwe Electoral Commission (ZEC).
9.
The mission, through its leadership, paid a courtesy call on the President of the Republic of Zimbabwe,
Mr Robert Mugabe. It also paid a courtesy call on the president of the MDC, Mr Morgan Tsvangirai.
10.
The mission, collectively or through its leadership, also interacted with various role players and
stakeholders in the electoral process. There were also meetings with Zanu-PF, the MDC, the Zimbabwe
Council of Churches, the Zimbabwe Crisis Coalition, the Electoral Supervisory Commission, the
Zimbabwe Electoral Commission, the media, and candidates contesting various const ituencies.
23 AUGUST 2005
11.
PAGE: 198 of 644
The Mission collected data through attending rallies and meetings called by the contesting candidates
and other relevant stakeholders.
12.
The Mission travelled to various provinces of Zimbabwe during the pre-election observation period. On
polling day, in accordance with the laws of the country, the Mission had access to polling stations and
counting centres throughout the country.
13.
The Mission recorded its observations and referred concerns raised to appropriate authorities.
14.
The Mission issued public statements where it deemed necessary it to do so.
15.
The Mission interacted with representatives of other observer missions, including the African Union
(AU) and the SADC Observer Mission.
16.
The Mission assessed the role of the media in the electoral pr ocess.
THE PRE-ELECTION PERIOD
Five (5) political parties and fourteen (14) independent candidates contested the 2005 Parliamentary Elections.
Zanu-PF and the MDC contested all the constituencies.
Zanu-PF focused its campaign on the anti-colonialist political strategy (Anti-British), the completion of the land
reforms and on the successful economic turnaround with its emphasis on the “Look East” policy.
The MDC concentrated its campaign on Zimbabwe’s economic crisis, accusing the government of
mismanagement, corruption and cronyism. It encouraged the people of Zimbabwe to vote for the MDC and
promised to deal more equitably with the current land distribution issue.
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The two main campaigns took place in a calm and peaceful political climate. There were isolated cases where
meetings were described as having been “tense but without incident”.
Independent candidates also campaigned without hindrance, under calm and peaceful conditions.
The Mission observers submitted daily reports of their observations and experiences throughout the provinces.
Work and Deployment of Observers
On arrival in Harare, on 14 March 2005, the Mission immediately sat down to work. It received its first briefing
from the South African Ambassador to Zimbabwe. The second briefing was from the Zimbabwe Electoral
Commission, and finally, the Mission was given a political overview by ambassadorial staff.
On 15 March 2005, the Mission received briefings from the Electoral Supervisory Commission, the Zimbabwe
Council of Churches and the Zimbabwe Crisis Coalition.
The Mission convened at the South African Embassy on the 16 March 2005 to receive a background briefing on
the security situation in the country. After this briefing, the Mission was divided into teams and deployed to the
provinces. The following provinces were covered:
*
Harare and Chitungwiza
*
Mashonaland East
*
Mashonaland West
*
Mashonaland Central
*
Bulawayo Metro
*
Matebeleland South
*
Masvingo; and
*
Manicaland.
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Report Submissions
The Mission received 135 reports from its observer teams. Of these, 91 relate to the pre-election period and 44
capture observations on polling day.
Events and Meetings
Numerous political rallies and meetings were observed. Average attendance at rallies ranged between 2 000 and
4 000 people. Some rallies were attended by as many as 25 000 people.
The teams also attended and observed voter education sessions, the training of election monitors, and party
canvassing. There were also meetings with political parties, electoral officials, civil society organisations,
security officials and other observe rs.
Among the issues discussed at these meetings were the Voters’ Roll, voter registration, the demarcation of
constituencies, the placement of polling stations, the recruitment of electoral staff, the voting process, the
provision of electoral material, the role of observers, voter education, the role of party agents, the candidates’
list, the political climate, political party campaigning and dispute resolution processes.
Political Climate
In general observer teams indicated that the pre-election polit ical climate in Zimbabwe was calm and peaceful.
This observation was also consistent with the determinations made by other observers and by civil society,
including the Zimbabwe Council of Churches.
There were, however, instances where some rallies or meetings were described as “tense but without incident ”.
Violations of the Electoral Law
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During the pre-election period no violations of the electoral law were observed.
Compliance with the SADC Guidelines
Generally, all teams were satisfied that the SADC Principles and Guidelines were complied with in the period
leading to polling day.
In some of the reports there were concerns raised around certain issues, including:

Equal access to the media

Food distribution along party political lines

Intimidation

Double booking of venues

Removal/defacing of election posters

The role of traditional leaders
Observers followed up on these concerns, but no verifiable evidence was found.
The Media
By the time the Mission started its work, regulations had already been promulgated to ensure that the Zimbabwe
Broadcasting Holdings (ZBH) gives the contending parties equitable access.
Political parties were allocated 91 free minutes on state television and current affairs shows, interviews, talk
shows and general election news characterized the election period.
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Furthermore, provision was made for parties that received more than 5% of the vote in the previous
parliamentary elections to receive a proportional amount of state funding. In this regard, both the Zanu-PF and
MDC received approximately R3 million each, which funds they could use to finance their election campaigns.
Overview of the Pre-election Process
The Mission noted that:

The delimitation or demarcation process resulted in the reduction of urban constituencies by three and
an increase of rural constituencies by the same number. The Delimitation Commission determined that
massive urban-rural migration that had taken place in the past justified the adjustments.

Allegations were received that some people were assaulted or intimidated and that there was selective
distribution of food parcels by the government. Observers followed these up. No evidence was found to
substantiate these allegations.

Generally, just before the elections, polling stations were properly st affed, accessible, easily
identifiable and the law had been complied with regarding the location and preparation of voting
stations.

Voter education was well planned and executed.

The voter registration process appeared to have been accessible to all voters. The Voters’ Roll was
accessible to the public and the parties.
23 AUGUST 2005

PAGE: 203 of 644
There was satisfaction with the training of electoral staff. They were taken through the Electoral Act
page by page and the exercise was done in user-friendly language. This staff component was composed
of both young women and men.

Party agents were trained using practical demonstrations. This component also was composed of both
women and men.

The general impression was that security in relation to the electoral process was well organised and that
the political climate in the country was calm and peaceful.

Other observers, political parties, commentators and leaders in the country also expressed a view that
there was peace and political tolerance in the country and that the people of Zimbabwe were
demonstrating commendable levels of political maturity.
Preliminary Conclusion
Accordingly, the Mission’s pre-election conclusion was that the country, from both logistical and political
perspectives, was well prepared to hold the 2005 Parliamentary Elections.
Based on the reports relating to the pre-election period, the Mission concluded that the pre-election political
climate in Zimbabwe was favourable for elections to take place. All parties and candidates had campaigned
without hindrance and the parties and candidates themselves had conducted their campaigns in a manner that
demonstrated commitment to the promotion of peace, stability and the holding of free and fair elections.
POLLING DAY
Introduction
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Cognisant of the fact that an election is not a single event of casting a ballot paper on the day of polling, the SA
Parliamentary Observer Mission adopted a comprehensive approach to observing the election process, working
to ascertain and preserve the integrity of every stage of the process, from the pre-election phase through to
counting.
March 31, 2005 presented the Mission with an opportunity to assess, in line with its mandate, whether
conditions prevailed for the Zimbabwean people to elect, freely, their parliamentary representatives.
The observers paid particular attention to the following:

Efficiency and impartiality of election staff;

Monitoring by party agents and independent monitors and observers;

Fair access of voters to polling stations and a manageable number of voters per constituency;

Legal voting procedures, including the Voters’ Rolls, proper identification documents, checks
and balances against fraud, translucent ballot boxes and the security of ballot papers; and

Security at the voting precincts
Voting
With regard to the voting process, the Mission noted as follows:

Party agents, local monitors, regional and international observers were present at polling stations.

The voting process was orderly.

Polling stations opened on time, staff and election materials were present and there were no
unauthorised personnel.

The performance of staff at polling stations was described either as efficient or very efficient.
23 AUGUST 2005
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
Election procedures were explained, identities checked and voting was secret.

Security personnel were always present at poling stations.

Due to certain reasons, some potential voters could not vote. These included cases where voters had
gone to wrong constituencies - their names did not appear on the Voters’ Roll - or did not possess
acceptable identification documents. Presiding Officers noted the reasons and personal details of those
turned away.

Polling stations closed on time. Procedures were followed.
The general conclusion was that the polling process was well managed, transparent for all stakeholders,
monitors and observers. The conditions under which people voted were orderly, peaceful and allowed the
people to express their democratic will freely.
Counting
With regard to counting, the Mission observed that:

Counting staff, party agents, local monitors and observers were present during the counting process.

There were no unauthorised personnel during counting and procedures were followed.

Security personnel were always present.

When disputes arose regarding the status of certain ballot papers, these were placed in separate
envelopes.

The performance of counting staff is rated from satisfactory to very efficient.
The counting exercise went well and was strictly monitored.
CONCLUSION
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Therefore, meeting on 2 April 2005, in Harare, the South African Parliamentary Observer Mission unanimously
agreed that, with regard to the 2005 Zimbabwe Parliamentary Elections;

The pre-election processes were well organised and executed.

The election campaigns were peaceful and parties and candidates had the political space to canvass
support.

Parties and leaders demonstrated a commitment to peace and the tolerance of divergent views.

There were adequate and accessible polling stations.

Polling stations were sufficiently provided for in terms of logistics and security.

Polling stations opened and closed on time.

There were correct Voters’ Rolls at the stations and the layout was done properly.

Ballot boxes were empty at the start of polling, and were sealed correctly afterwards.

During voting, voters correctly identified themselves. There was no intimidation and voting was secret.
No repeat voters were observed. The voting process was smooth and efficient.

All persons at the polling and counting stations were accredited.

The electoral process was, by and large, transparent and observed throughout by party agents, monitors
and observers.
Therefore, the SA Parliamentary Observer Mission concluded that the 2005 Zimbabwe Parliamentary Elections
were executed efficiently. The electoral processes were legitimate and credible and, to the extent that it is
possible and reasonable, they allowed for the broad participation of all stakeholders and interested parties.
The electoral processes were executed in line with the laws of the land and, by and large, were consistent with
the SADC Principles and Guidelines.
The Mission accordingly concluded that the 2005 Zimbabwe Parliamentary Elections were free and fair.
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Recommendations
The March 2005 Parliamentary Elections are critically important for the short- and long-term future of
Zimbabwe and the region. Having concluded the electoral process, the country needs to work on rebuilding
regional and international confidence through continued focus on electoral reforms and economic revival
policies.
Among other things, attention may need to be paid to the reduction of the number of people turned away on
voting day. Political parties should also play a role in ensuring that voters are registered correctly.
The Mission felt that it benefited from observing a meticulously planned and executed electoral process. Among
the many interesting lessons, the door-to-door voter education programme as well, as the method of voting
whereby voters are divided into three queues in alphabetical order were of particularly interest.
WEDNESDAY, 29 JUNE 2005
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(1) Report and Financial Statements of the Public Accountants' and Auditors' Board for 2004, including
the Report of the Independent Auditors on the Financial Statements for the year ended 31 December
2004.
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(2) Report and Financial Statements of Sasria Limited for 2004, including the Report of the Independent
Auditors on the Financial Statements for the year ended 31 December 2004.
2.
The Minister for Justice and Constitutional Development
(1) Draft Regulations made in terms of the Promotion of Administrative Justice Act, 2000 (Act No 3 of
2000).
3.
The Minister of Arts and Culture
(1) Report and Financial Statements of the National Arts Council of South Africa for 2003-2004,
including the Report of the Auditor-General on the Financial Statements for 2003-2004.
(2) Report and Financial Statements of Robben Island Museum for 2003-2004, including the Report of
the Auditor-General on the Financial Statements for 2003-2004 [RP 212-2004].
COMMITTEE REPORTS
National Assembly
1.
Report of the Portfolio Committee on Defence on the Armaments Corporation of South Africa,
Limited Amendment Bill [B 14 - 2005] (National Assembly – sec 75), dated 21 June 2005:
The Portfolio Committee on Defence, having considered the subject of the Armaments
Corporation of South Africa, Limited Amendment Bill [B14 - 2005] (National Assembly –
sec 75), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill,
endorses the classification of the Bill and reports the Bill with an amendment [B 14A -2005].
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The Committee further reports that the current situation is that the Secretary for Defence
and the Chief of the SANDF are ‘ex officio’ members of the Board of Directors of
Armscor, South Africa’s armaments acquisition agency. The Armaments Corporation of
South Africa, Limited Amendment Bill [B14-2005] aims to remove the Chief of the South
African National Defence Force (SANDF) from the Board of Directors of Armscor. This is
to address the ‘conflict of interest’ of the Chief, who will be ‘player and referee’, i.e. he
requests and uses the military equipment as head of the military establishment, but also
approves the acquisition and supplier as a director of the board.
In addition the Committee and the Department of Defence believed that the Secretary for
Defence as a member of the Board is also in a potential position where there would be a
‘conflict of interest’. As the head and the accounting officer of the Department of Defence
(department), he has to oversee and account for Armscor, which receives a transfer
payment from the department. If he is on the board, then he will not be able to objectively
oversee and account for the activities of the Board. This would have adverse implications
for corporate governance and adherence to the Public Finance Management Act. As such
the Committee amended the bill to also remove the Secretary from the Armscor board.
Report to be considered.
TUESDAY, 12 JULY 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
Draft bills submitted in terms of Joint Rule 159
23 AUGUST 2005
PAGE: 210 of 644
(1) Constitutional Matters Amendment Bill, 2005, submitted by the Minister for Justice and
Constitutional Development on 1 July 2005. Referred to the Portfolio Committee on
Justice and Constitutional Development and the Select Committee on Security and
Constitutional Affairs.
FRIDAY, 15 JULY 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
Introduction of Bills
(1)
The Minister for Justice and Constitutional Development
(i)
Constitutional Matters Amendment Bill [B 22 – 2005] (National Assembly – sec
75) [Bill and prior notice of its introduction published in Government Gazette No
27782 of 12 July 2005.]
Introduction and referral to the Joint Tagging Mechanism (JTM) for classification in terms
of Joint Rule 160, on 15 July 2005.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted
to the Joint Tagging Mechanism (JTM) within three parliamentary working days.
23 AUGUST 2005
PAGE: 211 of 644
FRIDAY, 22 JULY 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
Assent by President in respect of Bills
(1)
Petroleum Products Amendment Bill [B 16B – 2004] – Act No 2 of 2005 (assented to
and signed by President on 18 June 2005);
(2)
Sterilisation Amendment Bill [B 12B – 2004] – Act No 3 of 2005 (assented to and
signed by President on 18 June 2005);
(3)
Appropriation Bill [B 7 – 2005] – Act No 4 of 2005 (assented to and signed by
President on 18 June 2005);
(4)
Citation of Constitutional Laws Bill [B 5B – 2005] – Act No 5 of 2005 (assented to
and signed by President on 23 June 2005);
(5)
Re-determination of the Boundaries of Cross-Boundary Municipalities Bill [B 12 –
2005] – Act No 6 of 2005 (assented to and signed by President on 23 June 2005);
(6)
Taxation Laws Amendment Bill [B 19 – 2005] – Act No 9 of 2005 (assented to and
signed by President on 14 July 2005); and
(7)
Taxation Laws Second Amendment Bill [B 20 – 2005] – Act No 10 of 2005 (assented
to and signed by President on 10 July 2005).
2.
Classification of Bills by Joint Tagging Mechanism:
23 AUGUST 2005
(1)
PAGE: 212 of 644
The Joint Tagging Mechanism (JTM) on 19 July 2005 in terms of Joint Rule 160(3),
classified the following Bill as a section 75 Bill:
(i)
South African Abattoir Corporation Act Repeal Bill [B 21 – 2005] (National
Assembly – sec 75)
3.
Draft bills submitted in terms of Joint Rule 159
(1)
Auditing Profession Bill, 2005, submitted by the Minister of Finance on 23 June 2005.
Referred to the Portfolio Committee on Finance and the Select Committee on Finance.
(2)
Special Pensions Amendment Bill, 2005, submitted by the Minister of Finance on 23 June
2005. Referred to the Portfolio Committee on Finance and the Select Committee on
Finance.
National Assembly
1.
Referral of Bills
The Speaker
(1)
The Constitutional Matters Amendment Bill [B 22 – 2005] (National Assembly –
sec 75) was introduced in the National Assembly on 15 July 2005 and referred to the
Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160, and is
now referred to the Portfolio Committee on Justice and Constitutional Development
for consideration and report.
23 AUGUST 2005
PAGE: 213 of 644
In terms of Joint Rule 147(2), the Chairperson of the National Council of Provinces
and I, acting jointly, have decided that the Portfolio Committee on Justice and
Constitutional Development of the Assembly and the Select Committee on Security
and Constitutional Affairs of the Council must confer on the subject of the Bill.
TABLINGS
National Assembly and National Council of Provinces
1. The Minister for Justice and Constitutional Development
a) Draft Amendment Regulation made in terms of Public Funding of Represented Political
Parties Act, 1997 (Act No 103 of 1997) submitted in Parliament in terms of section 10 of
the Act.
b) Proclamation No R 18 published in the Government Gazette No 27468 dated 6 April 2005:
Referral of matters to existing Special Investigating Unit and Special Tribunal, made in
terms of section 2(1) of the Special Investigating Units and Special Tribunal Act, 1996 (Act
No 74 of 1996).
c)
National Assembly
1. The Speaker
23 AUGUST 2005
PAGE: 214 of 644
a) Letter received from the President dated 12 July 2005 informing the National Assembly of the
employment of the South African Defence Force:
EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE IN
COTE D’IVOIRE IN FULFILLMENT OF THE INTERNATIONAL OBLIGATIONS
OF THE REPUBLIC OF SOUTH AFRICA TOWARDS COTE D’IVOIRE
This serves to inform the National Assembly that I authorised the employment of the South
African National Defence Force (SANDF) personnel to Cote D’Ivoire for service in fulfillment
of the International obligations of the Republic of South Africa towards Cote D’Ivoire, in the
provision of assistance in the implementation of the Pretoria Agreement, with specific
emphasis on the Disarmament, Demobilisation and Reintegration process.
The employment was authorised in accordance with the provisions of section 201(2)(c) of the
Constitution of the Republic of South Africa, 1996 (Act No 108 of 1996), read with section 93
of the Defence Act, 2002(Act No 42 of 2002).
A total of 46 members of the SANDF will be deployed for the mission as from 08 July 2005 to
31 March 2006.
The total estimated cost to be borne by South Africa for the deployment of personnel to the
mission until 31 March 2006 will be R 26 090 724.
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I will communicate this report to the Members of the National Council of Provinces and the
Chairperson of the Joint Standing Committee on Defence, and wish to request that you bring
the contents hereof to the notice of the National Assembly.
Regards
TM MBEKI
PRESIDENT
b) Report of the Public Service Commission on Financial Misconduct for 2002-2003 and 20032004 financial years [RP 41/2005].
FRIDAY, 29 JULY 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
Introduction of Bills
(1)
The Minister of Education
(ii) Education Laws Amendment Bill [B 23 – 2005] (National Assembly – sec 76 [Bill
and prior notice of its introduction published in Government Gazette No 27599 of 27
May 2005.]
23 AUGUST 2005
PAGE: 216 of 644
Introduction and referral to the Portfolio Committee on Education of the National
Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in
terms of Joint Rule 160, on 27 July 2005.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted
to the Joint Tagging Mechanism (JTM) within three parliamentary working days.
2. Membership of Committees
The following changes have been made to the membership of Joint Monitoring Committee viz:
JMC on Improvement of Quality of Life and Status of Children, Youth and Disabled Persons:
Appointed: Mazibuko, Ms N F
Discharged: Madlala, Ms M M
National Assembly
1.
Membership of Committees
(1) The following changes have been made to the membership of Standing Committees, viz:
Public Accounts:
Appointed: Molefe, Mr C T
(2) The following changes have been made to the membership of Portfolio Committees, viz:
Correctional Services:
Appointed: Khoarai, Mr L P
23 AUGUST 2005
PAGE: 217 of 644
Discharged: Magau, Ms K R
Labour:
Discharged: Oliphant, Mr G G
2.
Membership of the Assembly
(1)
The following members will vacate their seats in the National Assembly with effect from 1
August 2005:
Mpaka, H M; Ntshulana-Bhengu, N R; Magazi, M N; Joemat, R R; Mnandi, P N;
Herandien, C B.
(2)
The following member will vacate his seat in the National Assembly with effect from 31
July 2005:
Durr, K D S.
The vacancy which occurred owing to Mr K D S Durr vacating his seat in the National
Assembly with effect from 31 July 2005 is to be filled with effect from 1 August 2005 by
the nomination of Mr H B Cupido.
TABLINGS
National Assembly and National Council of Provinces
23 AUGUST 2005
1.
PAGE: 218 of 644
The Minister of Transport
(a) Report and Financial Statements of the South African Maritime Safety Authority (SAMSA)
for 2002-2003, including the Report of the Auditor-General on the Financial Statements
for 2002-2003.
(b) Report and Financial Statements of the South African Maritime Safety Authority (SAMSA)
for 2003-2004, including the Report of the Auditor-General on the Financial Statements
for 2003-2004.
2.
The Minister of Safety and Security
(a) Proclamation No R.18 published in Government Gazette No 27502 dated 15 April 2005:
Commencement of the Protection of Constitutional Democracy Against Terrorist and Related
Activities Act, 2004 (Act No 33 of 2004).
(b) Proclamation No R.22 published in Government Gazette No 27598 dated 20 May 2005:
Notification by President in respect of entities identified by the United Nations Security
Council in terms of section 25 of the Protection of Constitutional Democracy Against
Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).
(c) Government Notice No R.474 published in Government Gazette No 27598 dated 20 May
2005: Direction by the National Commissioner of the South African Police Service in terms
23 AUGUST 2005
PAGE: 219 of 644
of section 12(3) of the Protection of Constitutional Democracy Against Terrorist and Related
Activities Act, 2004 (Act No 33 of 2004).
3.
The Minister of Trade and Industry
(a) Government Notice No R.282 published in Government Gazette No 27419 dated 29 March
2005: Assignment of inspection functions in terms of the Credit Agreements Act, 1980
(Act No 75 of 1980).
(b) Government Notice No R.283 published in Government Gazette No 27419 dated 29 March
2005: Assignment of inspection functions in terms of the Sale and Service Matters Act,
1964 (Act No 25 of 1964).
(c) Government Notice No R.293 published in Government Gazette No 27440 dated 8 April
2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58
of 1962).
(d) Government Notice No R.294 published in Government Gazette No 27440 dated 8 April
2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58
of 1962).
(e) Government Notice No R.295 published in Government Gazette No 27440 dated 8 April
2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58
of 1962).
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(f) Government Notice No R.296 published in Government Gazette No 27440 dated 8 April
2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58
of 1962).
(g) Government Notice No R.358 published in Government Gazette No 27475 dated 15 April
2005: International Trade and Administration Commission of South Africa: Countervailing
Regulations in terms of the International Trade Administration Act, 2002 (Act No 71 of
2002).
4.
The Minister of Water Affairs and Forestry
(a) Government Notice No 513 published in Government Gazette No 27614 dated 3 June
2005: Release of parts of a state forest which is no longer required for forestry in terms of
sections 50(4) of the National Forests Act, 1998 (Act No 84 of 1998).
(b) Government Notice No 874 published in Government Gazette No 27650 dated 3 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of
ground cover, including slash, the clearing or maintenance of a fire belt by burning or the
execution of blockburns: Kwazulu-Natal Province in terms of the Forest Act, 1984 (Act
No 122 of 1984).
(c) Government Notice No 531 published in Government Gazette No 27641 dated 10 June
2005: Transformation of the Umlaas Irrigation Board. Magisterial Districts of
Pietermaritzburg, Camperdown and Richmond, Kwazulu-Natal Province, into the Upper
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Mlazi Water User Association, Water Management Area number 11, Kwazulu-Natal
Province in terms of the National Water Act, 1998 (Act No 36 of 1998).
(d) Government Notice No 532 published in Government Gazette No 27641 dated 10 June
2005: Transformation of the Groenland Irrigation Board, Magisterial District of Caledon
(Theewaterskloof Municipality), Western Cape Province, into the Groenland Water User
Association, Water Management Area number 18, Western Cape Province in terms of the
National Water Act, 1998 (Act No 36 of 1998).
(e) Government Notice No 533 published in Government Gazette No 27641 dated 10 June
2005: Transformation of the Vanwyksdorp Irrigation Board, Magisterial District of
Calitzdorp, Western Cape Province, into the Vanwyksdorp Water User Association, Water
User Association, Water Management Area number 16, Western Cape Province in terms
of the National Water Act, 1998 (Act No 36 of 1998).
(f) Government Notice No 534 published in Government Gazette No 27641 dated 10 June
2005: Establishment of the Nzhelele Catchment Water User Association, Vhembe District
Municipality, Limpopo Province, Water Management Area number 1 in terms of the
National Water Act, 1998 (Act No 36 of 1998).
(g) Government Notice No 558 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of slash
and clearing or maintenance of fire belts by burning and the execution of blockburns:
Districts of Nelspruit, White River, Pilgrim’s Rest, Lydenburg, Belfast, Waterval-Boven,
Carolina and Barberton in terms of the Forest Act, 1984 (Act No 122 of 1984).
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(h) Government Notice No 559 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of slash
and clearing or maintenance of fire belts by burning and the execution of blockburns:
Districts of (A) Ermelo, Eerstehoek, Carolina and Waterval-Boven; (B) Piet Retief and
Wakkerstroom in terms of the Forest Act, 1984 (Act No 122 of 1984).
(i) Government Notice No 560 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of slash
and clearing or maintenance of fire belts by burning and the execution of block-burns
Vhembe District Municipality (formerly Soutpansberg areas) in terms of the Forest Act,
1984 (Act No 122 of 1984).
(j) Government Notice No 561 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of slash
and clearing or maintenance of fire belts by burning and the execution of block-burns
Mopane District Municipality (formerly Letaba and Pietersburg Districts) in terms of the
Forest Act, 1984 (Act No 122 of 1984).
(k) Government Notice No 554 published in Government Gazette No 27664 dated 10 June
2005: Release of state forest land at Sederberg, Grootvadersbosch, Hawequas,
(Limtedberg) and Kogelberg Forest Reserves – Western Cape, which is no longer required
for forestry purposes in terms of the National Water Act, 1998 (Act No 36 of 1998).
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(l) Report of the Department of Water Affairs and Forestry to the National Assembly on
Write-off of Loan Guaranteed by the State (Kanoneiland Settlement Management Board),
in terms of section 70(4) of the Public Finance Management Act, 1999 (Act No 1 of 1999).
National Assembly
1. The Speaker
Report on an Investigation by the Public Protector into an Allegation of Misappropriation of Public
Funds by the Petroleum Oil and Gas Corporation of South Africa, trading as PetroSA, and Matters
Allegedly Related Thereto.
Referred to the Portfolio Committee on Minerals and Energy for consideration.
COMMITTEE REPORTS
National Assembly
1.
Report of the Portfolio Committee on Agriculture and Land Affairs on the South African
Abattoir Corporation Act Repeal Bill [B 21 – 2005], dated 14 June 2005:
The Portfolio Committee on Agriculture and Land Affairs, having considered the subject of
the South African Abattoir Corporation Act Repeal Bill [B 21 – 2005], referred to it and
classified as a section 75 Bill, reports the Bill without amendment.
TUESDAY, 2 AUGUST 2005
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ANNOUNCEMENTS
National Assembly
1.
The Speaker
Ms P Mlambo-Ngcuka has been appointed as Leader of Government Business in the National
Assembly with effect from 28 June 2005, in terms of section 91(4) of the Constitution of the
Republic of South Africa, 1996 (Act No 108 of 1996), thereby replacing Mr C Nqakula who had
been appointed on 15 June 2005.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a) Response of National Treasury to Recommendations of the Portfolio Committee on Finance
on Budget Vote 8 – National Treasury for 2005-2006 and Strategic Plan.
(b) Response of National Treasury to Recommendations of the Portfolio Committee on Finance
on the South African Revenue Services (SARS) Strategic Plan for 2005 to 2008.
(c) Response of National Treasury to Recommendations of the Portfolio Committee on Finance
on Budget Vote 13 – Statistics South Africa.
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(d) Annual Report of the South African Reserve Bank - Bank Supervision Department for 2004
[RP 10-2005].
(e) Government Notice No 535 published in Government Gazette No 27656 dated 6 June 2005:
Notice setting out particulars of areas demarcated by Municipalities of Ekurhuleni,
Msunduzi, Nelson Mandela and Polokwane in terms of section 13quat of the Income Tax
Act, 1962 (Act No 58 of 1962), which shall constitute urban development zones.
(f) Government Notice No R.25 published in Government Gazette No 27681 dated 17 June
2005: Fixing of a date on which section 14(1)(a) of Revenue Laws Amendment Act, 2004
(Act No 32 of 2004), shall come into operation.
2.
The Minister of Safety and Security
(a) Proclamation No R.31 published in Government Gazette No 27746 dated 1 July 2005:
Notification by President in respect of entities identified by the United Nations Security
Council in terms of section 25 of the Protection of Constitutional Democracy Against
Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).
(b) Proclamation No R.29 published in Government Gazette No 27713 dated 1 July 2005:
Notification by President in respect of entities identified by the United Nations Security
Council in terms of section 25 of the Protection of Constitutional Democracy Against
Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).
3.
The Minister of Education
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(a) Government Notice No R.744 published in Government Gazette No 27819 dated 20 July
2005: National Policy regarding Further Education and Training Programme: Approval of
the Document, the National Senior Certificate: A qualification at Level 4 on the National
Qualifications Framework (NQF), in terms of the National Education Policy Act, 1996
(Act No 27 of 1996) and the South African Schools Act, 1996 (Act No 84 of 1996).
COMMITTEE REPORTS
National Assembly
1.
Tenth Report of Standing Committee on Public Accounts: Business and Arts South Africa,
dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the Business and Arts South Africa for the
year ended 31 March 2004, tabled in Parliament on 03 September 2004 and referred to it, reports
as follows:
2. AUDIT OPINION
The Committee commends the Board and the Executive of the Business and Arts South Africa for
the unqualified audit opinion expressed by the independent auditors, Grant Thornton, and trusts
that future audit opinions will be equally unqualified.
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3. CONCLUSION
The Committee is of the view that no further interaction with the accounting authority of Business
and Arts South Africa is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report.
Report to be considered.
2.
Eleventh Report of Standing Committee on Public Accounts: William Humphreys Art
Gallery, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the William Humphreys Art Gallery for the
year ended 31 March 2004, tabled in Parliament on 31 August 2004 and referred to it, reports as
follows:
2. AUDIT OPINION
The Committee commends the Council of the William Humphreys Art Gallery for the unqualified
audit opinion expressed by the Auditor General and trusts that future audit opinions will be equally
unqualified.
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3. CONCLUSION
The Committee is of the view that no further interaction with the accounting authority of William
Humphreys Art Gallery is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
3.
Twelfth Report of Standing Committee on Public Accounts: Council for Medical Schemes,
dated 8 June 2005:
INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the Council for Medical Schemes for the
year ended 31 March 2004, tabled in Parliament on 29 September 2004 and referred to it, reports
as follows:
AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts
that future audit opinions shall be equally unqualified.
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EMPHASIS OF MATTER
The Committee notes the incidence of non-compliance with the Public Finance Management Act
regulations and expects the situation to be rectified by the next audit.
CONCLUSION
The Committee is of the view that no further interaction with the Council of
Medical Schemes would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
4.
Thirteenth Report of Standing Committee on Public Accounts: Engelenburg House Art
Collection, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the Engelenburg House Art Collection for
the year ended 31 March 2004, tabled in Parliament on 21 September 2004 and referred to it,
reports as follows:
2. AUDIT OPINION
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The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts
that future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Engelenburg House Art
Collection would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
5.
Fourteenth Report of Standing Committee on Public Accounts: Statistics South Africa,
dated 8 June 2005:
A. Introduction
The Standing Committee on Public Accounts, having considered the Annual Report and the Report of
the Auditor General on the Financial Statements of Statistics South Africa for the year ended 31 March
2004, tabled in Parliament on 28 September 2004 and referred to it reports as follows:
Expenditure procured in contravention of tender procedures (par 3.1, page 96)
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The Auditor-General reported that STATS SA had once again not complied with procurement
regulations during the year under review. State Tender Board regulations were not complied with
in the procurement of services amounting to R3,3 million from the same supplier that services
amounting to R16,1 million had been procured irregularly in the previous financial year (2002/03)
The Committee recommends that the Accounting Officer immediately takes all appropriate
steps to ensure that, in future –
(a) all matters of procurement within STATS SA are compliant with all regulatory requirements,
including State Tender Board Regulations and Regulations in terms of the Framework for Supply
Chain Management; and
(b) Disciplinary enquiries take place, as required by the PFMA, in all instances where negligence or
wrongdoing may have taken place in order to cultivate a culture of compliance and discipline in
line with Government’s Batho Pele concept.
Regarding the three amounts of irregular expenditure in question (R16,1 million; R3.3 million, and
R9 million)1, the Committee further recommends that the Accounting Officer reports –
(c)
whether investigations in terms of sections 84 and 44 of the Public Finance Management Act
had taken place, and if not, why not; and if so, what the outcomes of the investigations were,
and
(d)
why the notes to the financial statements did not disclose, as required, detail regarding
disciplinary actions taken in the case of irregular expenditure, or in the case of fruitless and
wasteful expenditure.2
1
2
See par 3.1 on page 96 of annual report.
See notes 11.5 and 11.4 on pages 124 and 123.
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Unreconciled advances written off (par 3.2, page 96)
The Auditor General reported that an amount of R1.3m was written off without any steps first having
been taken to recover it.
The Committee, therefore, recommends that the Accounting Officer ensures that:
(a)
At all times, he carries out his responsibility of ensuring that before any debt is written off, he
ensures that evidence exists that all reasonable steps have been taken to recover the debt in
question, and that is it in fact irrecoverable;
(b)
Finalise the investigation on the reasons for R1.3m and report to Parliament, sixty days
after this report has been adopted by Parliament; and
(c)
Take disciplinary action against officials responsible for poor control and financial
administration.
Asset Registers (par. 3.3, page 97)
Auditor General reported that separate registers are kept for office equipment, computers and related
equipment. The computer assets and related equipment of R13.1m could not be verified.
The Committee recommends that the Accounting Officer urgently ensures that:
(a) Responsibility for a complete and accurate asset register is vested in a single senior manager at
STATS SA who can be held responsible for the asset register in future;
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(b) Appropriate measures are taken to ensure that the head of asset management will receive the
support from all division heads to ensure a speedy and effective rectification of the weaknesses,
e.g. including in the performance contracts of all line managers asset management as an area of
responsibility; and that the R13.1m computer assets are verified; and
(c) A proper plan with clear target dates is provided to the Minister, in terms of which the Accounting
Officer can be held accountable for the rectification of this matter.
Tax Payments (par 5.1, page 97)
The Committee is concerned that the Auditor-General could not verify the validity and accuracy of
payments to enumerators and related tax and levies due to late submission of the reconciliations and
supporting documents.
The Committee recommends that in future the Accounting Officer ensures that the necessary
reconciliations are done, and supporting documents are submitted timeously.
5
Delegation of Authority (par 5.2.1, page 97)
The Auditor-General reported that delegation of authority to budget managers was inadequate and very
broad.
The Committee recommends that the Accounting Officer:
(a) Comply with Treasury Regulation 15.12.1 and assign authority in writing to approve warrant
vouchers, cheques or electronic payments;
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(b) Delegates authority in terms of other best practices, e.g. specifying the levels of approval per post
and correct rank, indicating whether authority can be delegated further, and regularly reviewing the
delegations.
Internal Audit recommendations
The Committee is not satisfied with the delay in the implementation of internal audit recommendations.
The Committee therefore recommends that the Accounting Officer ensures that:
(a) All outstanding internal audit recommendations are implemented as a matter of urgency; and
(b) Quarterly reports are submitted to the Minister on progress being made by management in
response to internal and external audit findings (including a report by the Audit Committee on the
adequacy of the focus areas of internal audit).
The Committee further recommends that the required risk management strategy3 – not available during
the year under review – is immediately finalised and submitted to the Auditor-General for auditing
purposes.
Vacancies
The Accounting Officer confirmed that the Deputy Director-General (Population Statistics) has been
suspended for a period of two years and that other critical positions are still not filled due to scarcity of
skills.
Treasury Regulation 3.2.1.
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The Committee recommends that the Accounting Officer ensures that he -
(a) Takes all the necessary steps to ensure that STATS SA has the required senior management
capacity in order to deliver on its important mandate;
(b) Reports progress regarding the filling of all critical top management positions to the Minister on a
regular basis; and
(c) The suspension of the DDG is addressed and finalised as a matter of urgency.
General
The Committee recommends that all issues raised above are addressed in future strategic and business
planning of STATS SA.
The Committee further recommends that Parliament be provided with a progress report made on the
matters raised above.
Report to be considered.
6.
Fifteenth Report of Standing Committee on Public Accounts: Municipal Demarcation
Board, dated 8 June 2005:
Introduction
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The Standing Committee on Public Accounts, having considered the Annual Report and the Report of
the Auditor General on the Financial Statements of the Municipal Demarcation Board for the year
ended 31 March 2004, tabled in Parliament on 29 September 2004 and referred to it reports as follows:
FINANCIAL MANAGEMENT (page 103, 4.1, 2003/04 annual report)
The Auditor General reported that policies and procedures as implemented by management were not
fully adhered to.
The Committee recommends that:
(a)
The Audit Committee should review whether the implementation of the control measures has
occurred.
(b)
The MDB should report to this committee that all deficiencies have been resolved.
(c)
MDB should acknowledge non-compliance and deal with the root causes of weak financial
management and compliance with regulations and procedures.
(d)
MDB should ensure that there are compensating controls to take care of operational segregation,
e.g public participation and maps.
DONOR FUNDING (page 103, 4.3, 2003/04 annual report)
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It was reported that MDB did not keep accurate records of the spending of the Danish donor funds
received as required by the Donor Funding Agreement.
The Committee recommends that:
(a)
The MDB implements control measures to ensure that the terms of the donor funding agreement
are complied with.
(b)
The Audit Committee should review the compliance with the donor funding agreement.
BUDGET PROCESS / GOING CONCERN (page 103, 4.4, 2003/04 annual report)
It was reported that the following factors indicate that the going concern ability of the MDB appears to
be at risk:
(a) The accumulated surpluses at the end of 2003/04 are not considered sufficient to address the going
concern problem faced by the MDB.
The Committee recommends that:
(i)
The MDB and National Treasury should resolve the funding issues, and progress on this should be
reported to this Committee.
(b) The MDB does not have an effective system of monitoring its expenditure against the allocated
budget.
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The Committee recommends that:
(i)
The MDB should implement adequate measures to monitor the budget, the implementation
of which will be followed up by the AG’s Office;
(ii)
MDB should ensure that they put in place sustainable measures with regard to their
budgeting processes; and
(iii)
MDB to write to SCOPA with regard to when sustainable control measures will be put in
place.
COMPUTERISED GENERAL CONTROLS (page 103, 4.1, 2003/04)
The Auditor-General identified that there was a lack of password controls at the Board.
The Committee recommends that:
(a)
The MDB should satisfy the Committee that it will ensure that all its policies and procedures in
regard to its computerised system have been implemented, especially with regards to
implementing the necessary password controls to safeguard IT system.
GENERAL
(a) The Committee recommends that the Portfolio Committee on the Department of Provincial and
Local Government should follow up on the role of DPLG in supporting the MDB; and
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(b) Within 60 days after this report has been adopted by Parliament, MDB should supply the
Committee with actual amounts and rates of the consultants.
Report to be considered.
7.
Sixteenth Report of Standing Committee on Public Accounts: National Housing Finance
Corporation Limited, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Independent Auditors on the Financial Statements of the National Housing Finance
Corporation for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and
referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by Ernst & Young and trusts that
future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with National Housing Finance
Corporation Limited would be necessary for the financial year under review.
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The Committee therefore awaits the next Annual Report.
Report to be considered.
8.
Seventeenth Report of Standing Committee on Public Accounts: National Urban
Reconstruction and Housing Agency, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the National Urban Reconstruction and
Housing Agency for the year ended 31 March 2004, tabled in Parliament on 30 September 2004
and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the independent auditors Fisher
Hoffman and trusts that future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the National Urban Reconstruction
and Housing Agency would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report.
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Report to be considered.
9.
Eighteenth Report of Standing Committee on Public Accounts: Public Service Commission,
dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the Public Service Commission for the year
ended 31 March 2004, tabled in Parliament on 21 September 2004 and referred to it, reports as
follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts
that future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Public Service Commission
would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
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Report to be considered.
10.
Nineteenth Report of Standing Committee on Public Accounts: The Social Housing
Foundation, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of The Social Housing Foundation for the year
ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as
follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by Price WaterHouseCoopers and
trusts that future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with The Social Housing Foundation
would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report.
Report to be considered.
23 AUGUST 2005
11.
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Twentieth Report of Standing Committee on Public Accounts: Special Investigating Unit ,
dated 8 June 2005:
1. I NTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the Special Investigating Unit for the year
ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as
follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by Price WaterHouseCoopers and
trusts that future audit opinion shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with Special Investigating Unit would be
necessary for the financial year under review.
The Committee therefore awaits the next Annual Report.
Report to be considered.
23 AUGUST 2005
12.
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Twenty-First Report of Standing Committee on Public Accounts: Thubelisha Homes, dated
8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of Thubelisha Homes for the year ended 31
March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by Deloitte & Touché and trusts that
future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with Thubelisha Homes would be
necessary for the financial year under review.
The Committee therefore awaits the next Annual Report.
Report to be considered.
13.
Twenty-Second Report of Standing Committee on Public Accounts: Parliament of the
Republic of South Africa, dated 8 June 2005:
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A. Introduction
The Standing Committee on Public Accounts, having considered the Annual report and the Report of
the Auditor General on the Financial Statements of Parliament for the ended 31 March 2004, tabled in
Parliament on 4 November 2005 and referred to it, reports as follows:
1. Expenditure (par 3.2, page 71)
During the period under review there were insufficient controls over payment vouchers. The AuditorGeneral had found that no supporting documentation for payments amounting to R3 050 068 could be
submitted for auditing purposes.
The Committee recommends that the Accounting Officer urgently ensures that:
(a) All procedure manuals are updated to ensure clarity regarding the supporting documentation
required for all items of expenditure, and that staff who do not comply with the requirements be
dealt with in terms of the applicable disciplinary code;
(b) Managers authorising payments do so only in cases where the required supporting documentation
exists; and
(c) The inadequacies regarding the filing system are addressed without delay.
2. Receivables and Payables (par 3.5 & 3.6, page 72)
The Auditor General reported that a complete debtors age analysis could not be submitted for audit
purposes and the recoverability of the debtors could thus not be determined. An approved debt control
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policy did not exist during the period under review. Also, the creditor's reconciliation revealed an
overstatement of R6 726 706; and proof of the validity of, or services rendered in respect of payments
amounting to R4 624 213 could not be submitted for auditing purposes. The Committee found this to
be unacceptable and recommend that Parliament should submit documentation timeously.
The Committee therefore recommends that the Accounting Officer ensures that:
(a)
Debtors are properly administered and managed in accordance with an approved debt control
policy, including ensuring that a debtors age analysis is available as required, and that all
irrecoverable debtors are written off in terms of the applicable policies and procedures;
(b)
Payables are disclosed in the financial statements in terms of the applicable accounting policy;
(c)
Creditors' reconciliations are reviewed and authorised;
(d)
Use of suspense account is discouraged; and
(e)
The financial management skills audit is finalised and recommendations implemented as a
matter of urgency.
3. Internal Control (par 5.4, page 75)
The Auditor General reported that various internal and external audit findings in respect of previous
audits had not received the necessary attention from management. There was also no policy or system
in place to follow-up internal and external audit findings to ensure that corrective steps are taken, with
the result that weaknesses are not rectified timeously or not at all.
The Committee therefore recommends that the Accounting Officer:
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(a) Urgently implement an effective system in terms of which all internal and external audit findings
and recommendations are responded to by management and corrective actions assessed.
4. Third party payments and employee benefits and compensation (par 3.3, page 71;par 3.8,
page 73 and par 5.2, page 74)
The Auditor-General reported concern regarding the following aspects:

The occurrence of third party payments that could not be traced;

Leave entitlement of employees and leave paid out on resignation;

The correctness of medical aid allowances paid to various staff members since no proof
was submitted that the employees belong to a medical aid scheme as well as tarriffs in
respect of employer and employees' contribution; and

General problems regarding the implementation of the Manqoba management information
system.
The Committee recommends that the Accounting Officer ensures that:-
(a) A proper audit trail exists for all payments in order to verify payments to the cash book and
relevant bank statements; and furthermore, the Committee finds it unacceptable that third party
payments amounting to "R7m" could not be supplied timeously for auditing.
(b) All the necessary steps are taken to ensure that leave is managed properly, inter alia ensuring
that –

the backlog of leave forms should be captured on books of account as a matter of urgency;
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
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monthly verification of leave taken versus leave captured be completed by the division
managers; and
(c) Records are updated in respect of medical allowances according to the employee contracts,
(d) Correct contributions are paid by employer and employee; and
(e) Urgently rectify mistakes flowing from the implemenation of the Manqoba system.
5. Loans granted to former members of Parliament (note 11, page 89)
In the notes to the annual financial statements on page 89, an amount of R87 000 is disclosed as loans
to former Members of Parliament for the purposes of acquiring motor vehicles.
(a) The Committee therefore recommends that the accounting officer ensures that an investigation is
done to determine the possibility of recovering the loans to the former Members of Parliament and
a report, in this regard, is submitted to Parliament sixty days after this report is adopted by
Parliament.
6. Donor funding (par 3.1, page 71)
The Committee is concerned that the Auditor General could not confirm the validity and completeness
of donor funding received by Parliament from various local and foreign donors during the year under
review.
The Committee recommends that the Accounting Officer ensures that:
(a) The financial statements of Parliament disclose all donations received;
(b) A proper audit trail exist for the purposes of the internal and external auditors;
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(c) A formal policy that governs donor funding and financial accountability is implemented as a matter
of urgency;
(d) All donations received are approved by the Presiding Officers of Parliament in terms of their
controlling and supervisory functions provided for in section 3 of the Public Finance Management
Act and other applicable legislation.
Inventories and Parliamentary Shop (par. 3.7, page 72; 5.1, page 73 )
Notwithstanding various shortcomings reported on by the Auditor-General in the previous
management letters, these were again noted in the year under review.
The Committee recommends that the Accounting Officer ensures that:
(a) Issues raised by the Auditor General in management letters are addressed;
(b) The necessary financial management policies and procedures, as well as a proper system, are
implemented to control inventories; and
(c) Stock-taking and the financial progress of the shop are monitored and, in regard to the above, a
report is submitted to Parliament sixty days after this report is adopted by Parliament.
Report to be considered.
14.
Twenty-Third Report of Standing Committee on Public Accounts: National Department of
Health, dated 8 June 2005:
1. Introduction
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The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor General on the Financial Statements of the National Department of Health for the
year ended 31 March 2004, tabled in Parliament on 6 October 2004 and referred to it, reports as
follows:
A.
MAIN VOTE
Transfer payments and Conditional Grants to provinces (par 3, page 61-62)
During the year under review, transfer payments to various provincial departments constituted
91.4% (approximately R7 billion) of the Department of Health' expenditure. The report of the
Auditor General revealed fundamental deficiencies and non-compliance with the provisions of the
Division of Revenue Act, as well as instances of inadequate monitoring of conditional grants.
The Committee recommends that the Accounting Officer immediately:
(a) Takes all appropriate steps to comply with the requirements of the Division of Revenue Act
relating to transfer payments in particular those sections that deal with underspending and nonachievement of objectives;
(b) Ensures the development and implementation of a policy framework and clear guidelines for
grant utilisation and accountability in the provinces;
(c) Carry out ongoing financial and operational monitoring, especially on-site monitoring; and
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(d) Implements effective project management systems and processes within the Department for
general monitoring, as well as to ensure an early warning system to timeously identify and
address problem areas.
Inadequate monitoring of conditional grants (par. 5.1, page 62)
It was reported that no distinction was made between equitable share funding and conditional grant
funding in the financial management systems of the benefiting provinces.
The Committee recommends that the Accounting Officer immediately facilitate the
implementation of effective management systems that will clearly separate grant funds from
equitable share funds, so as to ensure that funds are utilised for the purposes defined in the business
plans and the DORA framework.
Transfer payments to Non-Governmental Organisations (NGO's) (par 5.3, page 62)
The Auditor-General reported that an amount of R110 million was transferred to NGO's.
However, there was non-compliance with the provisions of the PFMA and the Treasury
Regulations as well as the conditions of funding agreements with the department. The Department
transferred funds without obtaining assurance from the NGOs that they had implemented effective,
efficient and transparent financial management systems.
The Committee recommends that the Accounting Officer:
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(a)
PAGE: 252 of 644
Complies with his legal obligation regarding transfer of funds by obtaining the assurances
required by the PFMA in all instances where funds are transferred, or run the risk of being
found guilty of financial misconduct;
(b)
Immediately takes all appropriate steps in monitoring the performance and compliance with
the grant conditions of NGOs;
(c)
Facilitates a process to ensure that the Financial Year of NGO's coincide with the
Department's financial year.
Fixed Assets (par 5.2, page 62)
The fixed asset register maintained on the logistical system is not integrated with the accounting
system of the Department. Controls over the movement of assets were also reported to be inadequate.
The Committee therefore, recommends that the Accounting Officer urgently ensure that:
(a) A complete asset and inventory register is maintained in terms of best practice, and that it be
verified and reviewed by a senior official on a regular basis; and
(b) Financial management policies and procedures are established or refined in order to enhance the
custody and safekeeping of assets and inventory.
Vacancies and personnel turnover
The Committee recommends that the Portfolio Committee on Health:
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(a) Monitors the progress with the filling of all vacancies, especially critical top management
positions;
(b) Ensures that, overall, the issues raised by the Committee in this Report, are addressed in the
Department’s next strategic plan, and are monitored for implementation.
South African National Aids Trust (SANAT)
In 2002 SANAT was established with a donation of R20 million. The Auditor-General reported that
inadequate progress has been made regarding the objectives of the Trust as set out in the Deed of
Trust, and that fruitless and wasteful expenditure of R571 114 had been incurred.
The Committee recommends that the Accounting Officer ensures that:
(a) Proper planning is done in order to achieve the objectives of the Trust, including the preparation of
a budget as required by the PFMA six month prior to the year end.
(b) The membership to the Board of Trustees is finalised and that the Board is functional as a matter of
urgency, and progress in this regard be provided to Parliament sixty days after this report has been
adopted by Parliament; and
(c) Meeting of the Trustees three times a year is facilitated as required by par. 10.3 of the Deed of
Trust.
Report to be considered.
15.
Twenty-Fourth Report of Standing Committee on Public Accounts: National Home
Builders Registration Council, dated 8 June 2005:
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1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the National Home Builders Registration
Council for the year ended 31 March 2004, tabled in Parliament on 29 October 2004 and referred
to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts
that future audit opinions shall be equally unqualified.
3. EMPHASIS OF MATTER
The Committee notes that the NHBRC has not adopted a formal guide and policy on the
accounting methods and standards for the recognition of premium income and insurance/warrant
liabilities and expect this situation to be rectified in accordance with South African Statements of
Generally Accepted Accounting Practice, by the following audit.
The Committee further notes that the new Council was not yet appointed by 31 March 2004 in
accordance with Section 4(1) of the Housing Consumers Protection Measures Act, 1998 and will
monitor the situation in the following audit report.
4. CONCLUSION
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The Committee is of the view that no further interaction with the National Home Builders
Registration Council would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
16.
Twenty-Fifth Report of Standing Committee on Public Accounts: National Prosecuting
Authority, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the National Prosecuting Authority for the
year ended 31 March 2004, tabled in Parliament on 14 September 2004 and referred to it, reports
as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by Auditor General and trusts that
future audit opinion shall be equally unqualified.
3. CONCLUSION
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The Committee is of the view that no further interaction with National Prosecuting Authority
would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
17.
Twenty-Sixth Report of Standing Committee on Public Accounts: The Presidency, dated
8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the Presidency for the year ended 31 March
2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts
that future audit opinions shall be equally unqualified.
3. EMPHASIS OF MATTER
The Committee notes the weakness identified by the Auditor-General with regard to inadequate
policies to govern procedures relating to asset management. The Committee notes the progress
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made to bar code individual assets but urges the Department to reconcile the register by the
following audit. The Committee expects the Department to comply with the provisions of the
PFMA in this regard.
The Committee notes the weaknesses identified in the Information System audit and the indication
that management is addressing the situation and will monitor the situation in the following audit.
4. CONCLUSION
The Committee is of the view that no further interaction with the Presidency would be necessary
for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
18.
Twenty-Seventh Report of Standing Committee on Public Accounts: Rural Housing Loan
Fund, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the Rural Housing Loan Fund for the year
ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as
follows:
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2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by independent auditors Ernst and
Young and trusts that future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Rural Housing Loan Fund would
be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report.
Report to be considered.
19.
Twenty-Eight Report of Standing Committee on Public Accounts: South African Council
for Educators, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of the South African Council for Educators for
the year ended 31 March 2004, tabled in Parliament on 30 August 2004 and referred to it, reports
as follows:
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2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the independent auditors
PriceWaterhouseCoopers and trusts that future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the South African Council for
Educators would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report.
Report to be considered.
20.
Twenty-Ninth Report of Standing Committee on Public Accounts: Sport and Recreation
South Africa, dated 8 June 2005:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the Report
of the Auditor-General on the Financial Statements of Sport and Recreation South Africa for the
year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports
as follows:
2. AUDIT OPINION
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The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts
that future audit opinions shall be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with Sport and Recreation South Africa
would be necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
21.
Thirtieth Report of Standing Committee on Public Accounts: Unemployment Insurance
Fund, dated 8 June 2005:
Introduction
The Standing Committee on Public Accounts (SCOPA), having heard and considered evidence on
the Annual Report and the Report of the Auditor-General on the financial statements of the
Unemployment Insurance Fund (UIF) for the year ended 31 March 2004, reports as follows:
Structure and Governance
The Committee is very concerned about the fact that although the Unemployment Insurance Fund
(Fund) is being listed as a Schedule 3A public entity in terms of the PFMA, the Accounting Officer of
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the Fund is the Director-General of the Department of Labour. The Fund has an Advisory Board with
one of the Deputy Director-Generals being the Chairperson .
There is currently an arrangement between the Department of Labour (DoL) and the Fund where staff
of the DoL provide services to the Fund in order to assist the Fund to carry out its functions. The DoL
then invoices the Fund for the services that have been rendered by DoL staff.
The matter has been raised during previous hearings with no solution forthcoming from the Fund.
The Committee recommends that the Accounting Authority should ensure that:
(a) the reporting structures of the fund is reviewed and if necessary ammended to ensure unambiguous
accountability of the Fund;
(b) a decision is reviewed whether the Fund should be a schedule 3A public entity or a division of the
DoL; and
(c) SCOPA is updated with quarterly progess reports and timeframes (starting sixty days after the
adoption of this report by Parliament) indicating the improvements on the structure of the Fund.
Debtors
The Committee took note of:
(a) the fact that there is no proper debtor system in place which ensures that the fund collects all
revenue due from both SARS and non-SARS employers
(b) the Committee is also not satisfied with the progress of the project Siyaya.
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The Committee therefore recommends that:
(a) an adequate debtor system be put in place to control revenue; and
(b) SCOPA be provided with time frames, sixty days after the adoption of this report by Parliament, for
the full implementation of the debtor system, as well as the key milestones of project Siyaya.
Material breakdown in internal control
3.1
Bank reconciliation
The Committee noted that bank reconciliations were not performed and reviewed on a weekly basis
and that there were inadequate controls over paid cheques during the audit period.
The Committee recommends that the Accounting Authority should ensure that:
(a) bank reconciliation should be prepared in terms of Treasury Regulation 31.1.2(j);
(b)all reconciling items on the reconciliation should be followed up timeously; and
(c) systems, procedures, processes, training and awareness programmes are established to ensure
efficient and effective banking and cash management.
3.2
Fixed assets
The Auditor-General was unable to verify the existence of movable fixed assets due to an incomplete
and inaccurate fixed asset register.
The Committee finds the situation unacceptable as this matter has been reported for three successive
years and to date the Fund has not rectified the position.
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The Committee was informed during the hearing that the Fund has contracted the services from
Siemens Business Services, which is a Public Private Partnership. The Committee is concerned that
this contract does not cover all fixed assets.
The Committee recommends that the Accounting Authority ensures:
(a) the existence and maintenance of a complete and accurate fixed asset register;
(b) that proper controls over the management of all fixed assets are immediately implemented,
monitored and that discrepancies identified are followed up timeously;
(c) that a progress report be submitted to the Committee by July 2005 with regards to the full
implementation of the integrated fixed asset register; and
(d) that the Fund should implement mechanisms to monitor the adherence to internal controls and
procedures.
3.3
General computer controls
Significant weaknesses in the general computer control environment were highlighted in the audit
report with regard to programme change control, security administration and monitoring, and logical
access security. The Committee further noted that the proposed action plan to address the weaknesses
identified has not been implemented.
The Committee recommends that the Accounting Authority ensures:
(a) the implementation of an action plan with immediate effect;
(b) time frames for the implementation process are set and forwarded to SCOPA, sixty days after the
adoption of this Report by Parliament;
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(c) proper management and compliance monitoring take place with respect to contracts and service
level agreements of all service providers; and
(d) an information system environment that complies with required standards is available.
Non-compliance with laws and regulations
The Committee is concerned about various issues of non-compliance highlighted in the audit report
with regards to the PFMA, Treasury Regulations, the UIF Act and the Unemployment Insurance
Contributions Act. However, it has not been informed of any disciplinary actions taken to address noncompliance issues.
The Committee recommends that the Accounting Authority urgently ensures that:
a) measures are implemented immediately to monitor the Fund’s compliance with all applicable laws
and regulations;
b) corrective actions are taken where the fund has not fully complied with applicable laws and
regulations;
c) a designated official is tasked to take responsibility for compliance and to facilitate effective
corporate governance; and
d) SCOPA be informed forthwith of any disciplinary actions taken to address non-compliance issues.
Responses to previous hearing
The Committee noted that although improvements were made since the previous hearing in 2002,
some significant issues were not addressed. This
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raises doubts/ concern as to whether management is proactive and strategically focused to address the
problems that resulted in the material break down in internal control.
The Committee recommends that the Accounting Authority should provide SCOPA and the AuditorGeneral, sixty days after the adoption of this Report by Parliament, with timeframes for the
harmonisation of the database for Department of Labour, UIF and the Compensation Fund.
General: Departure from GAAP
It was noted that non-SARS contributions are accounted for on the cash basis.
The Committee recommends that a database of contributors and employers should be updated and
maintained to ensure full compliance with GAAP.
Having considered the evidence and the opinion expressed by the Auditor-General in previous years
reports; the Committee is of the view that the Minister should investigate the possibility of negligence
and misconduct with a view of conducting disciplinary action if necessary. The committee further
requests that the outcome of this investigation be reported back to SCOPA within 60 days of the
adoption of the report by Parliament.
Report to be considered.
22.
Thirty-First Report of Standing Committee on Public Accounts: Department of Defence,
dated 8 June 2005:
1.
Introduction
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The Standing Committee on Public Accounts (SCOPA), having heard and considered evidence on
the Annual Report and the Report of the Auditor-General on the financial statements of the
Department of Defence (DoD) for the year ended 31 March 2004, reports as follows:
2. Contingent liabilities and leave - page 143, paragraph 3.1
The audit report highligted unavailability of detailed supporting reports for leave credits relating to
a contingent leave liability of approximately R1,064 billion as well as inadequate internal controls
in respect of the leave administration system. The Committee is very concerned as the matter was
raised several times during previous hearings with no solution forthcoming from the DoD.
The Committee recommends that the Accounting Officer ensures that the following are in place:
a)
A reliable system that gives the monetary value, correct amount of leave credits for each
member in the SANDF and generates accurate, detailed management information;
b)
Leave credits are disclosed in the financial statements as prescribed including the directive
on leave of absence;
c)
Proper adherence to all relevant rules, regulations and instructions of the internal control
system.
d)
Proper management controls, which include regular independent checking and reviewing of
attendance and leave registers.
3.
Physical and intangible asset movement schedules - page 144,
paragraph 3.2
The audit report reflected that due to un-integrated systems existing at the DoD, no amounts
could be disclosed in the physical and intangible asset movement schedules as prescribed by
the Treasury Regulation.
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It was further noted that the DoD is not in a position to move to a modified accrual accounting
system any time soon.
The Committee notes that notwithstanding the recurrance of these system failures, the DoD has
yet to implement the necessary corrections.
The Committee recommends that the Accounting Officer:
a) Establishes a single logistical system that ensures accurate and complete disclosure; or
b) Upgrades the present logistical systems to make provision for accrual accounting; and
c) Indicates to the Committee time frames for implementation of a system that is integrated
and able to report the financial information required.
4.
Management of inventory, machinery and equipment page 144146, paragraph 5.1
4.1 The audit conducted on the management of inventory, machinery and
equipment revealed that the same weaknesses in internal controls as reported on in prior years
still existed in all main processes of asset management. This matter could mainly be ascribed to
the fact that management policies and procedures were not adequately followed.
The Committee finds it unacceptable that matters reported in prior years still remain
unresolved.
The Committee recommends that:
a) Internal control procedures be revised and improved where necessary;
b) Vacancies should be filled with skilled personnel and relevant training should be given and
the Portfolio Committee on Defence should monitor progress;
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c) Disciplinary action be implemented where non-compliance with prescribed policies/
regulations occurred;
d) Storage facilities be upgraded;
e) The reporting structure within a general support basis, army support basis and joint support
basis should be investigated and a practical/workable structure be considered that will give
the officer commanding full responsibility over all the offices within his/her unit; and
f) Logistic systems be integrated.
4.2
The Committee further noted that the DoD made commitments to SCOPA during previous
hearing regarding implementation of corrective measures in respect of excessive stock levels.
These include amongst other things disposal plans to be put in place for each service.
The Committee recommends that disposal plans be finalised on time and that SCOPA be
provided with the progress report within 60 days of adoption of the report by Parliament.
5.
Purchases and payables (accruals) - page 144, paragraph 3.4
The audit report reflected an instance where information could not be generated from the
accounting systems of the DoD resulting in the amount disclosed as accruals understated by an
unknown amount.
The Committee is concerned about the DoD's slow progress in addressing the issue.
The Committee recommends that the Accounting Officer ensures that:
a)
An integrated system that will comply with the accrual accounting principles and
disclosures is implemented; and
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(b)
The current systems are upgraded/replaced or National Treasury has to revisit its
requirements on disclosure within the limitations placed by the existing information systems.
6.
Departmental income - page 144, paragraph 3.3
The committee is concerned about the completeness of income amounting to R266,342 million
that could not be verified due to the inconsistent application of the internal controls applicable
to income.
This has been a serious concern to the Committee as the situation worsened and the DoD
implemented controls that are not functioning properly. The Committee is of the view that the
DoD is not in a position to satisfy SCOPA that the matter will be corrected during the next
financial year.
The Committee therefore recommends that the Accounting Officer ensures that:
a)
Steps are taken to ensure that monies received are regularly reconciled and
checked by senior personnel at unit level; and
b)
Systems are reconfigured to ensure that income can be managed and controlled at
unit level.
7.
Irregularities and losses - page 144, paragraph 3.5
The Committee noted inconsistent application of policies and
procedures resulting in losses and damages not reported to the
finance division and that damage and loss registers at unit
level were not updated regularly.
The Committee recommends that the Accounting Officer ensures that:
(a) Losses are reported and the loss register is updated and reviewed on a regular basis;
(b) Reconciliation is performed on a regular basis; and
(c) Training in financial management for senior personnel at unit level is implemented.
8.
Land and buildings - page 146, paragraph 5.2
The Committee is concerned about various instances that caused uncertainity over the
completeness and accuracy of the DoD's facility register system. Reconciliations could not be
performed with Public Works' asset register due to the incompatibility of the two systems. This
matter was raised in the previous report.
The Committee recommends that the Accounting Officer ensures that :
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a)
A complete and accurate facility register is kept;
b)
Proper maintenance of buildings are carried out by the Department of Public Works, over
and above innovative ways of maintaining buildings by the Department itself;
c)
Timeous investigations are carried out regarding the economic viability to either restore
or demolish uninhabitable buildings and houses to reduce third party liability to an
acceptable level;
d)
The current land and buildings register inventory be submitted to SCOPA within 30 days
of the adoption of this report by Parliament.
e)
Provide SCOPA with a plan of action on how the Department will minimise possible
health and safety risk which could result in the DoD becoming liable to third parties due
to the uninhabitable status of buildings and houses
The Committee further recommends that:
a) a completed integrated land inventory be established in consultation with the Department of
Public Works and Department of Land Affairs addressing problems causing the current
incompatibilities between the registers of the various departments; and
b) the Committee be supplied with a progress report, within 90 days of the adoption of this
Report by Parliament, on how the above problems are being addressed, and thereafter with
a copy of the full reconciliation register.
9. Gifts, donations and sponsorships - page146, paragraph 5.3
The Committee noted with concern shortcomings with regards to validity, accuracy and
completeness of gifts received, donations and sponsorships made and received in kind.
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The Committee recommends that internal control measures should be revised to ensure that all
gifts, donations and sponsorships are reported and ultimately reflected correctly in the financial
statements.
10.
Personnel expenditure: Commuted overtime - page 146, paragraph 5.4
The Committee noted that internal controls with regards to overtime were not followed. In
certain cases, the policies and procedures did not seem to be adequate to address all weaknesses
in the system.
The Committee was also informed about the investigation that the DoD instituted with regards
to issues raised in the audit report.
The Committee recommends that the Accounting Officer ensures:
a)
Improved management of commuted overtime in order to achieve acceptable levels;
b)
Updated implementation instructions and revised contracts for commuted overtime;
and
c)
Adherence by all managers and supervisors to the implementation manual to
monitor commuted overtime constantly to prevent over-underpayments.
11. Information systems - page 147, paragraph 5.7
The Committee noted that the Auditor-General could not place reliance on the general controls
surrounding Computer Aided Logistic Management Information Systems (CALMIS) this
resulted in the activities of database administrators not being logged and monitored.
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The Committee recommends that security management be improved by means of baseline
security standards based on the security policy. It should be enforced through detailed,
documented and monitored processes and procedures and must be reported back to SCOPA
within 60 days of adoption of this report by Parliament.
12. Revenue and receivables (foreign aid in kind) - page 146, n
paragraph 5.5
The Committee is concerned that nothing has been done in the previous financial years to
address the shortcomings in the system for recording and collation of foreign aid assistance
received in kind.
The Committee finds the situation unacceptable, as the matter has been recurring for three
consecutive years.
The Committee recommends that a progress report be submitted to SCOPA within 30 days of
the adoption of this report by Parliament.
13. Rooivalk - page 49 & 81
The committee noted the time spent and cost thereof together with the number of Rooivalk aircraft
manufactured and recommend that SCOPA be supplied with a cost benefit analysis of this project
and how future operational cost been funded.
14. General
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The Auditor-General should follow up on the following issues during the financial year ending
2004/05 audit and provide feedback to SCOPA:
a) All the aspects highlighted above including previous SCOPA recommendations on the DoD and
SDA; and
b) Findings on the statutory mandate of National Conventional Arms Control Committee (NCACC)
as reported on pages 146 -147, paragraph 5.6 of the audit report.
The Committee is of the view that the Department should adapt to systems that satisfy the
Department’s needs in consultation with National Treasury.
Report to be considered.
WEDNESDAY, 3 AUGUST 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
DECISION BY THE SPEAKER AND THE CHAIRPERSON OF THE NATIONAL
COUNCIL OF PROVINCES TO ESTABLISH AN AD HOC JOINT COMMITTEE ON
AMENDMENT
REGULATIONS
TO
PUBLIC
FUNDING
OF
REPRESENTED
POLITICAL PARTIES ACT, 1997 (ACT NO 103 OF 1997) IN TERMS OF JOINT RULE
138(1)(b).
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The Speaker of the National Assembly and the Chairperson of the National Council of Provinces,
acting jointly, have decided in terms of Joint Rule 138(1)(b) to establish an Ad Hoc Joint Committee to
consider draft amendment regulations tabled by the Minister for Justice and Constitutional
Development (on behalf of the President of the Republic) on 22 July 2005, the Committee to -
(a)
consist of the Portfolio Committee on Justice and Constitutional Development of the
Assembly and the Select Committee on Security and Constitutional Affairs of the Council;
(b)
make recommendations to the President, in terms of section 10(1) of the Public Funding of
Represented Political Parties Act, on the draft amendment regulations;
(c)
inform the Assembly and the Council of its recommendations to the President;
(d)
complete its task by not later than 19 August 2005; and
(e)
exercise those powers in Joint Rule 32 that may assist it in carrying out its task.
SPEAKER
CHAIRPERSON
NATIONAL ASSEMBLY
NATIONAL COUNCIL OF PROVINCES
National Assembly
1.
Membership of the Assembly
Mr E M Dipico resigned as Member of the National Assembly and Parliamentary Counsellor to
the President with effect from 1 August 2005.
TABLINGS
23 AUGUST 2005
PAGE: 275 of 644
National Assembly and National Council of Provinces
1.
The Minister of Finance
1,Government Notice No 636 published in Government Gazette No 27748 dated 30 June 2005:
Exemptions from section 117, in terms of the Local Government: Municipal Finance Management
Act, 2003 (Act No 56 of 2003).
2. Government Notice No 637 published in Government Gazette No 27748 dated 30 June 2005:
Revocation of Government Notice No 1404 of 1 December 2004 and Exemption from certain
Supply Chain Management Provisions and Regulations Promulgated under section 168 of the
Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003).
3.Government Notice No 638 published in Government Gazette No 27748 dated 30 June 2005: Repeal
of the Municipal Accountants Act, 1998 (Act No 21 of 1998).
4.Government Notice No 639 published in Government Gazette No 27748 dated 30 June 2005:
Exemptions from section 16(2) of the Municipal Finance Management Act, 2003 (Act No 56 of 2003).
5. Government Notice No 622 published in Government Gazette No 27729 dated 1 July 2005:
Amendment of the Rules of the Government Employees Pension Fund in terms of the Government
Employees Pension Law (Proclamation No 21 of 1996).
6.Response of South African Revenue Services (SARS) to Recommendations of the Portfolio
Committee on Finance on the Strategic Plan of the South African Revenue Services (SARS) for
2005 to 2008.
23 AUGUST 2005
PAGE: 276 of 644
7. Response of Statistics South Africa to Recommendations of the Portfolio Committee on Finance
on Budget Vote 13 – Statistics South Africa.
8. Proclamation No R.25 published in Government Gazette No 27681 dated 17 June 2005: Fixing
of a date on which section 14(1)(a) of Revenue Laws Amendment Act, 2004 (Act No 32 of
2004), shall come into operation.
Please Note: Numbers (f), (g) and (h) above replaces (b), (c) and (f) respectively tabled in the
Minister of Finance’s name on Announcements, Tablings and Committee Reports (ATC) of 2
August 2005, Page No. 1401.
COMMITTEE REPORTS
National Assembly and National Council of Provinces
1.
Report of the Joint Budget Committee on National and Provincial Expenditure from April
2004 to March 2005:
A.
1.
NATIONAL EXPENDITURE
Introduction
Departmental expenditure has been fairly consistent throughout the financial year. However, it is
evident that Departments increased their expenditure in the last quarter, as was the case in the last
financial year. The Department of Communications, in particular, always spends more than half of its
23 AUGUST 2005
PAGE: 277 of 644
budget in the last month of the financial year. These two departments, together with the Department of
Sports and Recreation, increased their expenditure significantly in March 2004.
The Department of Communications had only spent 41.29% of its budget at the end of the third
quarter, leaving it with 58.71% to spend in the last quarter. However, in a period of one month (March
2005) the Department managed to spend 50.09% of its budget, bringing its total expenditure to 98.22%
by the end of the financial year. Likewise, the Department of Foreign Affairs had spent 47.48% by the
end of the third quarter and increased its expenditure significantly towards the end of the financial
year.
It is worth mentioning that the same trend was evident in the expenditure of the Department of
Communications for the past three financial years. For example, in February 2003, the Department
had only spent 45.75% of its budget, and then managed to spend 49.72% in the last month of that
financial year (March 2003). Similarly, in February 2004, the Department had spent 45.67% of its
budget, and then spent 50.75% in the last month of the financial year.
Table 5 (Appendix 1) indicates that Departments underspent by R 6.3 Billion, which is lower than the
R8 Billion underexpenditure from the 2003/04 financial year. In addition, Figure 1 indicates that
Departmental spending has been gradually decreasing over the past three financial years.
Figure 1: Average departmental Spending trends
23 AUGUST 2005
PAGE: 278 of 644
Average Expenditure: 2002/03 - 2004/05
0.988
Average Annual Expenditure
0.986
0.984
0.982
0.98
0.978
0.976
0.974
0.972
0.97
2002/03
2003/04
2004/05
Year
2.
Analysis Of Expenditure Per Quarter
2.1.
First Quarter
In the first quarter of the financial year, some departments were disbursing funds to institutions and
their budgets reflected these transfers. Most notable was the Department of Education, which spends
most of its budget during the first and second quarters. Another example is the Department of Social
Development.
The First quarter expenditure report showed a gradual decline in expenditure from April to June 2004.
Average expenditure declined gradually from 9.84%, 7.80% to 6.75% in April, May and June 2004
respectively.
23 AUGUST 2005
PAGE: 279 of 644
The Department of Education was the highest spender in the first two quarters and the Departments of
Foreign Affairs and Communications were already lagging behind with their spending.
2.2.
Second and Third Quarters
The second quarter indicated some fluctuation of expenditure in certain departments, notably the
Departments of Social Development, Public Enterprises, as well as Provincial and Local Government.
These Departments transfer a large portion of their funds in certain months and thus present highly
fluctuating expenditure from month to month. The Department of Social Development, for example,
spent 24.43% of its budget in October 2004 and only 0.56% in November 2004. In addition, while the
Department of Provincial and Local Government spent only 2.42% of its budget in October, it spent
18% of its budget in November.
The Department of Minerals and Energy was the highest spender in December 2004, spending 27.92%
of its budget in this month. The department explained that the increase in expenditure was attributed
to a huge payment of R447.688 million made to ESKOM for the National Electrification Programme.
The Departments of Communications and Foreign Affairs had spent only 41.29% and 47.48% of their
budgets at the end of the third quarter. The Department of Communications was still a cause for
concern at the end of the third quarter, as had been the case in the preceding two financial years. The
Department however, had increased its expenditure marginally from 32.52% in the third quarter of the
2003/04 financial year, to 41.29% at the end of the third quarter of the 2004/05 financial year. The
Department of Communications’ expenditure has continuously been a cause for concern for the
Committee due to the department’s trend of under spending on its budget and then spending a huge
23 AUGUST 2005
PAGE: 280 of 644
chuck of the budget in the last month of the year. The Committee has previously recommended that
the Department appear before it.
The Departments that had spent highest on their budget were: the Departments of Education (91.19%),
Defence (79.36%), Parliament (76.56%) and GCIS (74.87%). The expenditure of Departments was
consistent and fairly predictable throughout the first three quarters; with Departments spending slightly
lower than they did in the same periods of the previous financial years.
The ratio in spending between current and capital expenditure remained unchanged in the second and
third quarters. Although some Departments had increased their capital expenditure, the average
remained the same, with Departments spending 72.76% on current expenditure, 71.39% on Transfers
and 65.82% on capital expenditure.
The social services sector was the highest spending sector with an average expenditure of 77.52%.
Departmental expenditure had dropped slightly from the 2003/04 financial year from 71.67% in the
third quarter of the 2003/04 financial year to 69.71% in the third quarter of the 2004/05 financial year.
In addition, Departments are consistent in terms of their spending trends, and there are no major
changes from the last financial year.
2.3.
Fourth Quarter
During the last quarter of the financial year, departments increased their expenditure tremendously,
most notably the Department of Communications. Similar to the last financial year, the Department
had spent lowest by February 2005, and then spent a huge chunk of its budget in the last month of the
financial year.
23 AUGUST 2005
PAGE: 281 of 644
Departments increased their average expenditure from 10.14% in January to 11.65% in March 2005.
Tables 1 and table 2 indicate the highest and lowest spenders at the end of the financial year. Although
the Department of Communications does not appear on these tables, it was the lowest spender for the
first three quarters of the financial year, but then spent 50.09% of its budget in the last month of the
financial year (March 2005). The same trend had been evident in the preceding two financial years.
3. Analysis of Average Expenditure as at 31 March 2005
3.1. Highest spending Departments
Table 1
%
Expenditure Expenditure Total
R'000
Total
for
Budget
Month
the for
Voted Amounts 153531637 17891904
%
the expenditure Expenditure
month
to date
to date
11.65%
149922646 97.65%
Underspending
3608991
0
Central
Government
Administration 24327550 2874461
11.82%
23467110 96.46%
860440
The Presidency 175852
22327
12.70%
167729
95.38%
8123
Parliament
576 144
37 018
6.43%
576 144
100.00%
Foreign Affairs 2546649
570394
22.40%
2307698
90.62%
238951
Home Affairs
343972
14.47%
1987006
83.57%
390609
2377615
23 AUGUST 2005
Provincial
PAGE: 282 of 644
and
Local
Government
13137381 1146557
8.73%
13121073 99.88%
16308
Public Works
5513909
13.68%
5307460
96.26%
206449
15060896 1588422
10.55%
14351960 95.29%
708936
203149
9.01%
202844
305
14021916 1449526
10.34%
13489905 96.21%
532011
77377
8272
10.69%
75668
97.79%
1709
32805
22.73%
127318
88.23%
16978
73081
8366
11.45%
71129
97.33%
1952
40887
13418
32.82%
34361
84.04%
6526
Financial
754193
and
Administrative
Services
Government
Communications
and Information
Services
18294
99.85%
National
Treasury
Public
Enterprises
Public
Service
and
Administration 144296
Public
Service
Commission
S
A
Management
Development
Institute
23 AUGUST 2005
PAGE: 283 of 644
Statistics South
Africa
500190
57741
Social Services 28803489 1794952
Arts
11.54%
350735
70.12%
149455
6.23%
27945256 97.02%
858233
18.59%
1091665
84432
and
Culture,
1176097
Education
11405095 488976
4.29%
11293774 99.02%
111321
Health
8818400
676375
7.67%
8387748
95.12%
430652
Labour
1228697
128376
10.45%
1098646
89.42%
130051
1 282 412 121 114
9.44%
1 281 971 99.97%
441
4598575
68698
1.49%
4509964
98.07%
88611
294213
92835
31.55%
281487
95.67%
12726
57538746 7315806
12.71%
56945869 98.97%
592877
8457492
1059541
12.53%
8026420
94.90%
431072
3 233 272
16.66%
19 396 182 99.92%
15 637
Science
218578
92.82%
and
Technology
Social
Development
Sport
and
Recreation
South Africa
Justice
and
Protection
Services
Correctional
Services
19
Defence
819
411
23 AUGUST 2005
PAGE: 284 of 644
Independent
Complaints
Directorate
Justice
42 114
6 586
15.64%
42 547
101.03%
-433
5054417
585404
11.58%
4907815
97.10%
146602
9.89%
24 572 905 100.00%
and
Constitutional
Development
Safety
Security
and
24 572 904 2 431 003
-1
Table 1 indicates that Parliament and the Department of Safety and Security have spent their total
budget, as was the case in the previous financial year. The only Department that overspent on its
budget is the Independent Complaints Directorate (ICD), which overspent by 1.03%. Expenditure
trends indicate that Departments have generally decreased their expenditure, particularly the lowest
spending Departments.
Figure 2: Average Expenditure of highest spending Departments
23 AUGUST 2005
PAGE: 285 of 644
Average Expenditure of the highest spending Departments
101.50%
Average Expenditure
101.00%
100.50%
100.00%
99.50%
99.00%
Parliament
Science and Technology
Defence
Independent Complaints
Directorate
Safety and Security
Department
3.2. Lowest spending departments
Table 2: Lowest Spenders
Expendit
ure
Total
R'000
%
for %
the
Budget Month
Expenditure
37
4
Expend
expenditur iture to
for the month e to date
1535316 1789190
Voted Amounts
Total
date
Underspending
14992264
11.65%
6
97.65% 36089910
Central
Government
2432755
Administration
0
2874461 11.82%
23467110 96.46% 860440
23 AUGUST 2005
The Presidency
PAGE: 286 of 644
175852 22327
12.70%
167729
95.38% 8123
100.00
Parliament
576144 37018
Foreign Affairs
Home Affairs
Provincial
6.43%
576144
%
2546649 570394 22.40%
2307698
90.62% 238951
2377 615 343 972 14.47%
1 987 006 83.57% 390 609
and 1313738
Local Government 1
Public Works
Financial
1146557 8.73%
5513909 754193 13.68%
13121073 99.88% 16308
5307460
96.26% 206449
and
Administrative
1506089
Services
6
1588422 10.55%
14351960 95.29% 708936
Government
Communications
and Information
Services
203149 18294
9.01%
202844
99.85% 305
1402191
National Treasury 6
1449526 10.34%
13489905 96.21% 532011
Public Enterprises 77377
8272
75668
97.79% 1709
144 296 32 805 22.73%
127 318
88.23% 16 978
73081
8366
11.45%
71129
97.33% 1952
40 887
13 418 32.82%
34 361
84.04% 6 526
10.69%
Public Service and
Administration
Public
Service
Commission
SA
Management
Development
23 AUGUST 2005
PAGE: 287 of 644
Institute
Statistics South
Africa
500 190 57 741 11.54%
350 735
70.12% 149 455
2880348
Social Services
9
1794952 6.23%
Arts and Culture,
1176097 218578 18.59%
27945256 97.02% 858233
1091665
92.82% 84432
1140509
Education
5
488976 4.29%
11293774 99.02% 111321
Health
8818400 676375 7.67%
8387748
Labour
1228 697 128 376 10.45%
1 098 646 89.42% 130 051
95.12% 430652
Only three Departments spent their total budgets, as opposed to five in the last financial year. In
addition, more departments underspent with a higher margin in the last financial year and Departments
such as the South African Management Development Institute (SAMDI) and the Department of Public
Service and Administration spend a large amount of their budgets in the last month of the financial
year.
The Departments of Home Affairs and Public Service and Administration have been among the lowest
spenders for three consecutive financial years, and SAMDI for two consecutive financial years.
23 AUGUST 2005
PAGE: 288 of 644
Figure 3: Average expenditure of lowest spending departments
Average Expenditure of Lowest spending Departments
120.00%
Average Expenditure
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
Home Affairs
Public Service and
Administration
S A Management Development
Institute
Statistics South Africa
Labour
Department
4. National Current, Transfer and Capital Expenditure
Departments spent most in capital expenditure rather than transfer or current expenditure. This is a
huge shift as it is the opposite trend to the last two financial years, wherein Departments have been
spending most on their current and less on their capital budgets. In the 2004/05 financial year,
Departments exceeded the average capital expenditure, spending an average of 106.33%, 98.28% and
96.11% in Capital, Transfer and Current Expenditure respectively.
This represents a decrease in current and an increase in capital expenditure from the last two financial
years.
4.1 Current Expenditure
The lowest spenders of current expenditure are the Departments of Provincial and Local Government
(59.03%), Sports and Recreation South Africa (66.49%), Stats SA (72.21%), SAMDI (72.38%) and
education (73.14%).
The highest spenders of current expenditure are the Departments of Public Enterprises, which
overspent by 4.52%, Defence overspent by 3.76%, Public Works by 3.28%. Parliament reported an
expenditure of 100% on current expenditure.
4.2 Transfers
The lowest spenders of transfer expenditure are the Public Service Commission (0%), the Departments
of Public Enterprises (29.82%), Public Works (73.48%), Sport and Recreation South Africa (79.87%),
Foreign Affairs (88.52%).
Several Departments overspent tremendously on their transfer expenditure. These are the Departments
of Correctional Services, which spent five times more than its original transfer budget1, the ICD, which
spent more than double its allocated transfer budget2. In addition, Statistics South Africa overspent on
23 AUGUST 2005
PAGE: 289 of 644
its transfer budget by 12.12%, Public Service and Administration by 5.63% and Justice and
Constitutional Services by 3.28%.
4.3 Capital Expenditure
The lowest spenders of capital expenditure are Arts and Culture (3.35%), National Treasury (29.33%),
Home Affairs (39.17%) and Stats SA (40.53%).
Several Departments overspent tremendously on their capital expenditure. Departments which
underspent most on capital expenditure are the Departments of Sport and Recreation, which spent
R56.9 Million from a budget of R2.6 Million. The Department of Science and Technology (521.88%)
spent five times more than its original budget3. Other Departments that spent more than double their
allocated capital funds are the Independent Complaints Directorate, SAMDI and the Department of
Housing.
Figure 4: Average current, transfer and capital expenditure
The graph below indicates that while current expenditure has decreased from the previous financial
year, capital expenditure has increased4.
B. PROVINCIAL EXPENDITURE
OVERALL PROVINCIAL EXPENDITURE
23 AUGUST 2005
PAGE: 290 of 644
Most provinces underspent marginally on their budgets. Provincial expenditure increased from an
average of 98.72% in 2002/03, to 99.47% in 2003/04, and again decreased to 96.94% in the 2004/05
financial year. The trend is illustrated in figure 5.
Figure 5: Provincial Expenditure trends over the last three years
Provincial Expenditure: 2002/03 to 2004/05
100.00%
99.50%
Average Expenditure
99.00%
98.50%
98.00%
97.50%
97.00%
96.50%
96.00%
95.50%
2002/03
2003/04
2004/05
Year
Table 3 indicates the expenditure of provinces at the end of the financial year. The North West
Province was the lowest spending province, underspending by 5.22%. Other provinces that underspent
on their budgets are Mpumalanga (4.7%), Free State (4.55%), Northern Cape (3.99%) and Gauteng
(3.09%). These are the lowest spending provinces. These provinces, with the exception of the
Northern Cape province, were also the lowest spenders in the 2003/04 financial year.
Table 3
% Expenditure
2003/04
as at 31 March
Expenditure
R'000
Eastern Cape
Total Budget Total Expenditure 2005
31 273 372
30 974 745
99.05%
102.08%
23 AUGUST 2005
PAGE: 291 of 644
Free State
13 489 087
12 875 741
95.45%
98.87%
Gauteng
31 206 772
30 243 249
96.91%
99.73%
Kwazulu-Natal
38 994 044
38 849 053
99.63%
100.65%
Limpopo
25 616 015
24 994 842
97.58%
97.51%
Mpumalanga
13 787 688
13 140 204
95.30%
97.52%
4 641 768
4 456 699
96.01%
101.51%
North West
15 881 229
15 051 807
94.78%
97.69%
Western Cape
18 670 995
18 250 348
97.75%
97.49%
Northern Cape
Figure 6: Provincial Expenditure: 2003/04 and 2004/05
Current, Transfer and Capital Provincial Expenditure
Table 4
Current Current %
R'000
Budget exp. to
Transfer Transfer %
Current Budget Exp. to
Capital Capital %
Transfers Budget Exp. To Capital
23 AUGUST 2005
PAGE: 292 of 644
date
exp. to
date
to date
date
Exp. to
date
Eastern
18 116
658
Cape
8 385
Free State
433
19 298
Gauteng
Kwazulu-
689
24 063
930
Natal
16 230
Limpopo
993
8 812
Mpumalanga
Northern
550
2 811
767
Cape
9 738
North West
Western
Cape
012
11 785
957
17 835
724 98.45%
8 049
997 96.00%
18 879
531 97.83%
23 626
501 98.18%
15 868
237 97.77%
8 518
390 96.66%
2 732
973 97.20%
9 364
409 96.16%
11 554
120 98.03%
date
11 450
1 705
846 11525209 100.65%
4 444
107 4325332
97.33%
97.85%
7 909
98.97%
99.70%
076 84.46%
2 366
959 87.26%
1 298
968 88.03%
032 666 494 66.12%
281
97.71%
5 282
061 210 253 74.81%
860
96.16%
5 763
754 5654755
545
1 821
1 008
1 548
679 5079655
575
1 475
3 967
940 1513472
031
2 712
539 12855593 105.22%
106 3955320
547 500 411 75.87%
2 156
12 217
477 7827637
812 94.60%
659
9 752
052 9542642
868
1 613
538 607 743 70.62%
1 121
98.11%
284
1 041
473 92.88%
The spending trends regarding current and capital provincial
expenditure has not changed from the preceding two financial years.
23 AUGUST 2005
PAGE: 293 of 644
Provinces are still spending more on their current expenditure and
less on capital expenditure.
This is depicted in table 4.
Figure 7: Economic classification of provincial expenditure: 2004/05 financial year
Provincial Current, Transfer and Capital Expenditure
1.2
Average Expenditure
1
0.8
% Current exp. to date
0.6
% Transfers to date
% Capital Exp. to date
0.4
0.2
or
th
ap
e
C
W
es
te
rn
N
N
er
n
or
th
pu
m
W
es
t
ap
e
C
ng
a
al
a
po
po
M
Li
m
az
ul
uN
at
al
te
ng
Kw
G
au
ee
Fr
Ea
st
er
n
C
ap
e
St
at
e
0
Province
Conclusion
Departmental spending trends indicate that Departmental expenditure is decreasing gradually and there
is more underspending than there was in the previous two financial years. This is indicated by the
gradual decrease in expenditure, from 98.64% in the 2002/03 financial year, 98.04% in the 2003/04
financial year, and 97.65% in the 2004/05 financial year. However, it is important to note that the
same Departments that were conspicuous in their spending patterns in the last two financial year, such
as Communications, Foreign Affairs, and Home Affairs, as well as SAMDI, are still so in this financial
year.
23 AUGUST 2005
PAGE: 294 of 644
At the beginning of the last financial year, the Parliamentary Research Unit contacted Departments in
order that they provide it with their strategic plans and cash flow projections. Not all Departments
responded to this request. However, even those who did, could not be very helpful in explaining the
spending trends of their Department. This was due to the following reasons:

Firstly, the cash flow projections only indicate month-by-month expenditure, and do not
distinguish between current and capital expenditure. It is would be beneficial if the cash flow
projections distinguished between current and capital expenditure and also if they reflected the
Department’s goals and objectives, as outlined in the strategic plans of Departments.

Secondly, few Departments spend according to the cash flow projections that they provide to
the Parliamentary Research Unit. It is thus difficult to keep track of the spending patterns of
these Departments.

The Department of Communications has indicated in the past that it does not have cash flow
projections and that programmes are funded as the need arises. This makes it even more
difficult to monitor expenditure in the Department.
RECOMMENDATIONS
In view of the fact that there has not been much change in the spending of departments from the last
financial year, the same recommendations that were made in the last financial year still stand, with a
few amendments. These are:

Further capacity building of Committees and Departments has to be built into financial
management procedures, especially regarding the Public Finance Management Act of 1999, to
ensure compliance with this Act.

Strategic plans of departments have to be scrutinised in order to ensure the redress of
underspending and overspending. This would entail that the Joint Budget Committee work
23 AUGUST 2005
PAGE: 295 of 644
closely with Portfolio and Select Committees in order to alert them of any queries in the
spending patterns of Departments. In addition, the Joint Budget Committee should collaborate
with the sector committees in interrogating the nature and quality of expenditure for those
Departments that have peculiar expenditure trends. Furthermore, the speaker’s office should
ensure that strategic plans are referred to Portfolio Committees.

Formally structured co-operation between the Joint Budget Committee and other sector
committees of Parliament should take place to allow for the flow of information in respect of
peculiar Departmental spending patterns. This could also relate to administrative support
structures of committees.

The Joint Budget Committee should facilitate public hearings and invite consistently
underspending and overspending National Departments and provinces to Parliament for
scrutiny.

The Joint Budget Committee, together with the sector committees, should interrogate the
quality of spending to detect fiscal dumping in those Departments that are underspending at the
early stages of the financial year and suddenly spend heavily towards the end of the financial
year. Examples in this regard are the Departments of Communications, Foreign Affairs and
Sport and Recreation.

It would be favourable for Departments to be called to appear before the Committee when
applying for rollovers and additional funding. While scrutinising the requests of Departments,
it is important for the Committee to have knowledge of how Departments are conducting their
budgets at that time. For example, the Committee should keep track of departments who apply
for additional funds even though they are struggling with their budgets.

The Joint Budget Committee should undertake study tours to those provinces that are
experiencing underspending or overspending problems. Alternatively, the Committee can look
23 AUGUST 2005
PAGE: 296 of 644
at other avenues of alerting provinces, such as alerting their legislatures of the
over/underspending.

The National Treasury should ensure timely publication of the monthly statements of revenue
and expenditure to give the Joint Budget Committee sufficient time to scrutinise and report on
these.

Continuous technical and research support should be given to the Joint Budget Committee and
other sector committees to ensure that they conduct their work smoothly.

The cash flow projections of Departments should be tabled in Parliament and presented to
Parliament and the Committee simultaneously with the strategic plans.
Appendix 1
Table 5: Expenditure trends as at 31 March 2005
R'000
Voted
Amounts
Central
Government
Expendit %
%
ure for
Expendit Total
Expenditur
Total
the
ure for
Budget
Month
the month re to date (200405)
153 531
17 891
637
904
expenditu e to date
Expendi
Underspen
ding
ture
(200203)
149 922
11.65%
646
97.65%
3 608 991 98.04%
96.46%
860 440 97.30%
23 467
24 327
550 2 874 461
%
11.82%
110
23 AUGUST 2005
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Administration
The Presidency
175 852
22 327
12.70%
167 729
95.38%
8 123 94.45%
Parliament
576 144
37 018
6.43%
576 144
100.00%
100.00%
Foreign Affairs
2 546 649
570 394
22.40% 2 307 698
90.62%
238 951 84.92%
Home Affairs
2 377 615
343 972
14.47% 1 987 006
83.57%
390 609 91.46%
073
99.88%
16 308 99.74%
13.68% 5 307 460
96.26%
206 449 101.03%
Provincial and
Local
Government
Public Works
13 137
13 121
381 1 146 557
5 513 909
754 193
8.73%
Financial and
Administrative
Services
15 060
14 351
896 1 588 422
10.55%
960
95.29%
708 936 95.99%
9.01%
202 844
99.85%
305 100.06%
Government
Communication
s and
Information
Services
203 149
National
14 021
Treasury
18 294
13 489
916 1 449 526
10.34%
905
96.21%
532 011 96.04%
Public
Enterprises
77 377
8 272
10.69%
75 668
97.79%
1 709 95.04%
144 296
32 805
22.73%
127 318
88.23%
16 978 89.66%
Public Service
and
23 AUGUST 2005
PAGE: 298 of 644
Administration
Public Service
Commission
73 081
8 366
11.45%
71 129
97.33%
1 952 99.85%
40 887
13418
32.82%
34361
84.04%
6 526 89.31%
500 190
57 741
11.54%
350 735
70.12%
149 455 95.50%
256
97.02%
858 233 98.24%
18.59% 1 091 665
92.82%
84 432 97.58%
SA
Management
Development
Institute
Statistics South
Africa
28 803
Social Services
27 945
489 1 794 952
Arts and Culture 1 176 097
218 578
6.23%
11 405
Education
11 293
095
488 976
4.29%
774
99.02%
111 321 99.22%
Health
8 818 400
676 375
7.67% 8 387 748
95.12%
430 652 97.03%
Labour
1 228 697
128 376
10.45% 1 098 646
89.42%
130 051 96.33%
1 282 412
121 114
9.44% 1 281 971
99.97%
441 99.83%
4 598 575
68 698
1.49% 4 509 964
98.07%
88 611 99.14%
294 213
92 835
95.67%
12726 97.29%
Science and
Technology
Social
Development
Sport and
Recreation
South Africa
31.55%
281 487
23 AUGUST 2005
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Justice and
Protection
Services
57 538
5 694
746 7 315 806
12.71%
5869
98.97%
592 877 99.35%
12.53% 8 026 420
94.90%
431 072 97.56%
16.66% 19396182
99.92%
15637 100.40%
42 547
101.03%
-433 99.74%
11.58% 4 907 815
97.10%
146 602 94.65%
100.00%
-1 100.00%
Correctional
Services
8 457 492 1 059 541
19 411
Defence
819 3 233 272
Independent
Complaints
Directorate
42 114
6 586
5 054 417
585 404
15.64%
Justice and
Constitutional
Development
Safety and
Security
24 572
24 572
904 2 431 003
9.89%
905
Economic
Services and
Infrastructure
Development
Agriculture
27 800
27 212
956 4 318 263
15.53%
451
97.88%
588 505
1 449 391
161 283
11.13% 1 383 552
95.46%
65 839 98.04%
1 679 917
841 440
50.09% 1 649 981
98.22%
29 936
Communication
s
23 AUGUST 2005
PAGE: 300 of 644
Environmental
Affairs and
Tourism
1 652 268
157 352
9.52% 1 633 883
98.89%
18 385 97.30%
Housing
4 826 781
327 175
6.78% 4 802 348
99.49%
24 433 94.45%
Land Affairs
2 031 882
286 544
14.10% 1 992 526
98.06%
39 356 100.00%
1 945 143
209 127
10.75% 1 858 666
95.55%
86 477 84.92%
Industry
3 623 291
731 740
20.20% 3 471 187
95.80%
152 104 91.46%
Transport
6 769 171
862 644
12.74% 6 643 363
98.14%
125 808 99.74%
3 823 112
740 958
19.38% 3 776 947
98.79%
46 165 101.03%
Minerals and
Energy
Trade and
Water Affairs
and Forestry
Appendix 2:
Figure 8: Departmental Expenditure Trends
23 AUGUST 2005
PAGE: 301 of 644
Departmental Expenditure 2004/05
1.2
1
Average
0.8
0.6
% expenditure to date
0.4
0.2
Transport
Minerals and
Housing
Communications
Economic
Safety and
Independent
Correctional
Social
Labour
Education
Social Services
Statistics South
Public Service
Public Enterprises
Government
Provincial and
Foreign Affairs
The Presidency
0
Department
Source

Statements of National and Provincial Revenue, Expenditure and Borrowing, January to March
2005, National Treasury.
2. Annual Report of the Joint Budget Committee
JUNE – NOVEMBER 2004
1. Name of the Committee: Joint Budget Committee (JBC)
2. Mandate of the Committee (vision, mission etc)
The JBC’s mandate is found in its Terms of Reference as resolved by both Houses of
Parliament on 25 June 2004. The resolution established the Committee to:
23 AUGUST 2005
(1)
PAGE: 302 of 644
consider proposed allocations in the Medium-Term Expenditure Framework and the
Appropriation Bill and whether these allocations are broadly in keeping with the policy
directions of the Government;
(2)
make proposals regarding the processes Parliament should follow with regard to its role
in the developing of budgets in accordance with constitutional requirements;
(3)
on a regular basis monitor monthly published actual revenue and expenditure per
department, and to ascertain whether they are in line with budget projections;
(4)
consider, when tabled, the Medium-Term Budget Policy Statement, with the exception
of those sections dealing with the macro-economic situation and revenue;
(5)
conduct hearings on the Medium-Term Expenditure Framework and Budget Policy
Review Document, with the exception of those sections dealing with the macroeconomic situation and revenue;
(6)
exercise those powers in Joint Rule 32 that may assist in carrying out its functions;
(7)
report—
(a)
on the Medium-Term Budget Policy Statement regarding the matters referred to in
paragraph 5; and
(b)
quarterly regarding the matters referred to in paragraph 4; and
23 AUGUST 2005
(8)
PAGE: 303 of 644
consider and make proposals regarding the nature of its functions relative to those of
other committees in respect of the budget process and conducting oversight, the
Committee to report thereon from time to time as may be necessary and to submit a
final report by not later than the end of the next budget cycle in Parliament.
2.1
List of Entities Reporting to the Committee
The Committee monitors monthly expenditure by all Government
Departments and reports to Parliament quarterly.
3. Chairperson’s overview (summary for the year)
The year 2004 was very short for the Committee. The new Committee was established on 25
June 2004, however, it was formally constituted on 8 October 2004 because of the delay by
authorities in allocating members to the Committee. The National Assembly allocated its
members to the Committee on 26 August 2004 and the National Council of provinces on 30
September 2004.
During the period covered by this report the Committee still faced the problem of most
members serving in it being core members of other busy Committees as it was the case with the
previous Committee. This tends to hamper progress with the work of the Committee as it is, in
most instances, difficult to get full attendance. As a Committee which is still in the
developmental stage it is crucial to get all members on board. We would like to appeal to
authorities to look into this matter and resolve it.
23 AUGUST 2005
PAGE: 304 of 644
We have also observed that Parliament regards this Committee as other joint Committees
whose main task is monitoring and may therefore not need to meet frequently. According to the
scheduling of meetings these Committees are scheduled to meet on Fridays only. In this regard
we would also like to appeal to Parliament to reconsider this situation as it clear that this
Committee has such a huge mandate.
4. Core objectives (responsibilities)
The Committee’s Terms of Reference are very broad and the Committee intends holding a
series of workshops in order to unpack them and then formulate its vision/mission and core
objectives.
4.1 Legislation
(Highlight briefly the main provisions of the Bills referred to the Committee, submission
received and indicate any amendments made)
-
Appropriation Bill
Item 2 of the Committee’s Terms of Reference stipulates, amongst other, that the JBC
must consider the Appropriation Bill. However, according to the current Parliamentary
arrangement this Bill is still the competency of the Finance Portfolio and Select
Committees and the JBC attends their hearings on the Bill.
4.1.1 Matters other than mandated legislation:
23 AUGUST 2005
4.1.1.1
PAGE: 305 of 644
International agreements
None
Hearings on matters of national interest, if any…
4.1.1.2
- Medium Term Budget Policy Statement (MTBPS)
The MTBPS is aimed at providing a pre-budget view on the macro-economic context,
assumptions and projections underlying the Budget, the medium term fiscal policy
framework, and the main divisions of revenue between functions and spheres of
government.
The JBC Committee held hearings on the MTBPS between 28 October and 03
November 2004 and tabled a report thereon in Parliament .
4.2 Oversight
(Briefly indicate places where the committee conducted oversight, its findings and
recommendations on the visit/s)
4.2.1
Annual Reports
None
23 AUGUST 2005
4.2.2.
PAGE: 306 of 644
Implementation of legislation
None
4.2.3
Institutional Oversight
None
4.2.4 International / national visits (capacity building)
The Committee did not undertake any visits during the period covered by the Report. Howev
the Committee’s intention to undertake an international study tour of a country where the B
Committee has been fully operational for a long time.
5. Committee activities
5.1 Invitations for Co-Chairpersons – Any invitation received on behalf of the Committee and
not in his/her individual capacity.
-
Budget Council
At invitation from the Minister of Finance, the Co-Chairpersons attended three
meetings of the Budget Council in Pretoria and one Budget Council Lekgotla in George
(Western Cape).
23 AUGUST 2005
PAGE: 307 of 644
The Budget Council consists of the Minister of Finance and all the MECs of Finance.
Its main function is to co-ordinate the different interests of national and provincial
governments and to make sure that agreement is reached on how to share revenue.
5.2 Conferences
None
6. Financial statements
Amount allocated for 2004/5 =
R250 000
Less: Total Expenditure =
R 85 657
---------------------------
- Catering =
- Attendance of Budget Council meetings =
R 8 141
R20 216
- Newspaper Adverts =
R57 300
-----------------------------------
Balance (as at 25 November 2004)
R164 343*
* The big figure reflected in the balance is as a result of the Committee operating for a short period of
time in 2004 and therefore should not be construed as underspending. Moreover, part of this amount
would be used for Committee activities during the period from January to March 2005.
5
Appendices
23 AUGUST 2005
PAGE: 308 of 644
1. COMPOSITION OF COMMITTEE
MEMBERSHIP:
MEMBER
DATE APPOINTED
DATE
(in current
DISCHARGED
Parliament)
African National Congress
Asiya, Mr S E (NA)
26/08/2004
Baloyi, Mr M R * (NA)
26/08/2004
Botha, Mr D J (NCOP)
30/09/2004
Cwele, Dr S C (NA)
26/08/2004
Davies, Dr R H * (NA)
26/08/2004
Goeieman, Mr M C (NCOP)
30/09/2004
Hogan, Ms B A (NA)
26/08/2004
Kannemeyer, Mr B W (NA)
26/08/2004
Kolweni, Mr Z S (NCOP)
30/09/2004
Mabe, Ms L L (NA)
26/08/2004
Manyosi, Mr A T (NCOP)
30/09/2004
Mashiane, Ms L M (NA)
26/08/2004
Mkhaliphi, Mr B J (NCOP)
30/09/2004
Moloto, Mr K A* (NA)
26/08/2004
Nene, Mr N M (NA)
26/08/2004
Ntwanambi, Ms N D (NCOP)
30/09/2004
Nyanda, Ms F (NCOP)
30/09/2004
01/11/2004
22/02/2005
23 AUGUST 2005
PAGE: 309 of 644
Ralane, Mr T (NCOP)
30/09/2004
Robertson,
22/02/2005
Schneemann, Mr G D (NA)
26/08/2004
Sikakane, Mr M R (NA)
26/08/2004
Sithole, Mr D J * (NA)
26/08/2004
Zita, Mr L (NA)
26/08/2004
Democratic Alliance
Rabie, Dr P J (NA)
26/08/2004
Taljaard, Ms R (NA)
26/08/2004
01/01/2005
30/09/2004
Passed away on
Inkatha Freedom Party
Raju, Mr N M (NCOP)
27/10/2004
Smith, Mr P F * (NA)
26/08/2004
Woods, Dr G G (NA)
26/08/2004
United Democratic Movement
Stephens, Mr M (NA)
26/08/2004
African Christian Democratic Party
Durr, Mr K D S (NA)
26/08/2004
23 AUGUST 2005
PAGE: 310 of 644
Independent Democrats
Burgess, Mr C (NA)
13/10/2004
New National Party
Sinclair, Mr K * (NCOP)

30/09/2004
indicates an alternate member
Report of the Joint Budget Committee on Departmental Hearings on the
Appropriation Bill [B7-2005], dated 22 June 2005:
3.
1.
Department of Public Works
Building Classrooms and Hospital Revitalization Project
Summary
The Director-General of Public Works, Mr. James Maseko, presented before the Joint Budget
Committee that his department has no funding role in the building of schools infrastructure and
Hospital Revitalisation Programme. Funding is provided directly to provinces through the provincial
equitable shares and directly to provinces through conditional grants or through the national
Departments of Health and Education. The Department of Public Works’ role is to implement projects
budgeted for by sector departments, the department only acts as an agency. He highlighted that
planning and delivery of classrooms has been complicated by migration of learners between provinces
and schools within provinces. The national Departments of Public Works and Education, however, are
23 AUGUST 2005
PAGE: 311 of 644
now working together and have established the Infrastructure Delivery Improvement Programme to
improve provincial education infrastructure delivery.
Institutional Arrangement and funding
The Department of Public Works does not budget or is allocated funds for building schools or hospital
revitalisation. Sector departments such as Education and Health budget and plan for infrastructure
expenditure and the Department of Public Works only implements these plans by building classroom
or hospital buildings.
Currently, in some provinces Service Level Agreements are in place between the various provincial
departments. Gauteng Province utilises an independent agency for this function and not the
Department of Public Works. However, the Department has opted to resume working with the
Department of Public Works for the following reasons:
1. To ensure improved integration and coordination on the planning and delivery of infrastructure
projects.
2. To ensure a coordinated effort in enabling BEE and target group inclusion and development,
resulting in greater impact in the development of contractor and professional development.
In some provinces, such as Limpopo and the Eastern Cape, the provincial departments of Education
and Health use other implementation agents such as the Independent Development Trust (IDT) as a
way of expediting delivery. The result of these varied arrangements is that there is a lot of finger
pointing when problems emerge.
The current funding arrangement between the Department of Public Works, Education and Health is
that of transfer of budgets or cost recovery where the Department of Public Works uses its own
resources to deliver and claims back from the client department.
23 AUGUST 2005
PAGE: 312 of 644
Concerns were raised regarding the complex and confusing institutional (constitutional) arrangements,
particularly relating to the roles of national and provincial departments.
Expenditure trends
National Treasury has released figures indicating under-expenditure on provincial capital budgets for
the 2004/2005 financial year. National Treasury still has to release the final provincial infrastructure
expenditure figures for 2004/2005.
For education, in the past two financial years, the trend has been a slow expenditure of the budget for
education infrastructure at the beginning of the financial year, but a marked increase of the expenditure
in the last quarter of the financial year. Similar trends are experienced in health.
Although there are major issues that need to be resolved, under-expenditure in the past financial years
has not been the most important problem affecting delivery.
Programme to improve delivery
A joint task team has been established between the national Departments of Education and Public
Works to improve provincial education infrastructure delivery. This has led to the establishment of the
Infrastructure Delivery Improvement Programme ( IDIP). The programme will address problems
affecting delivery at the provincial level. The IDIP is coordinated by National Treasury and is being
rolled out to all provincial Departments of Education, Health and Public Works.
A similar approach is being envisaged between the national Departments of Health and Public Works.
23 AUGUST 2005
PAGE: 313 of 644
Planning and delivery
Planning for classrooms has been complicated by the migration of learners between provinces and
schools within provinces, which has resulted in some schools being under-utilised and others
overpopulated. It was highlighted that problems and solutions are not always infrastructure related but
rather social
Delivery of classrooms has further been hampered by late submissions of plans by provincial
Departments of Education to the provincial Departments of Public Works. This has resulted in further
delays in tendering processes, which takes long and is a tedious process. Another problem include late
payments of contractors by both Departments of Education and Public Works, as well as the
inadequate management of contractors.
The national Department of Public Works pointed out that projects are handed out to provincial
Departments of Public Works for implementation; the role of the national department is to ensure that
national plans were properly implemented at the provincial level. The problem of paying contractors
was recognised as a national one, affecting all government departments.
Other problems identified include:

Lack of skills in all three departments

Lack of communication between departments at provincial level

Insufficient joint planning

Lack of clear Sector Level Agreements that define roles and responsibilities
23 AUGUST 2005

PAGE: 314 of 644
Inadequate business processes at all stages of the supply chain cycle
It is hoped that the Infrastructure Delivery Improvement Programme will address these problems.
The following concerns were raised: concern regarding the proper planning for projects, whether
sufficient information was made available for the proper planning. A question was raised whether the
national Department of Public Works was supposed to have set standards for other departments,
especially provincial departments. Furthermore, concerns were raised regarding the late payments and
late submission of plans, which has affected service delivery. The issue of migration and long distance
travelled by schoolchildren was highlighted.
2.Department of Land Affairs
Summary
The Chief Financial Officer, Ms C Choane, Department of Land Affairs, provided an overview of the
department’s strategy and budget for 2005/06. The bulk of the 2005/06 budget would be channelled to
the Land Restitution Programme. This comprises 69% of the budget over the Medium Term
Expenditure Framework. This is in line with policy directives according to the MTBPS toward the
finalisation of land restitution within three years.
To provide more substance to the above comments, the Chief Land Claims Commissioner, Mr T
Gwanaya, described the progress made in land restitution, the measures to speed up the process and
challenges faced by the Department.
23 AUGUST 2005
PAGE: 315 of 644
Some of the issues that were raised by the Committee included the following:

Land occupied by the South African National Defence Force (SANDF).

Mechanisms to protect farm-dwellers.

High land prices.

Ensuring that communities were not exploited by housing developers.
Department of Land Affairs Briefing
In expanding on strategies to be utilised for 2005/06 within the framework for implementing land and
agrarian reform, the following was noted:

The land reform budget had increased substantially and the bulk of the budget would go on the
land restitution programme.

The government had set itself the target of delivering 30% of commercial agricultural land
(approximately 22 million hectares) by 2014 to black citizens.

About 20.6 million hectares should still be delivered at 1.87 million hectares per year to meet
the target.

The total amount of land delivered since 1994 was 3.5 hectares. More than a million people
had benefited from land reform.
In focusing specifically on land restitution, the following was highlighted:

59 345 restitution claims had been settled from 1999 to 31 March 2005, benefiting 172 769
households and delivering 887 093 hectares.
23 AUGUST 2005
PAGE: 316 of 644

A total of 28 087 claims still had to be settled by 2008/09.

The Land Claims Commission had developed an implementation plan that indicated how the
process was to be finalised.

The Minister announced a R6 billion increase in the budget for restitution over the next three
years, and 280 posts were created to increase capacity for the processing of claims.

New strategies have been developed to fast track the processing of claims, such as the grouping
of claims, standard settlement offers, outsourcing and the use of interns and seconded officials.

Furthermore, the Belgian government had approved 6 million Euros for fast tracking the
settlement of claims, and a further 6 million Euros for post-settlement support.
In terms of the 2005/06 budget for restitution, the following was detailed:

The Commission spent their budget of R1.18 million during the past financial year.

The original allocation had been depleted in October 2004, and the National Treasury had
advanced an additional allocation of R200 million in January 2005.

For the new financial year, the commission was allocated a total budget of R2.7 billion.
The challenges, noted by the department comprised the following:

High land prices.

Uncooperative sellers.

The shortage of state land for redistribution or restitution.

Organised agriculture should demonstrate more concrete commitment to land reform.

The culture of respect for the land rights of vulnerable groups should be increased.
23 AUGUST 2005

PAGE: 317 of 644
Technical support and skills development for land reform beneficiaries were critical for
sustainable land reform.
In conclusion, Mr Gwanya maintained that whilst significant progress has been made towards the
implementation of the land policy in South Africa, the following issues needed to be prioritised:

Additional resources were required to meet the 30% target for 2014.

The Land Summit (in its planning stages) will assist in identifying areas for policy reviews,
such as the willing-buyer-willing-seller policy.

More research is needed from international experiences in land reform and the financing of
land reform.

The role of provincial departments of agriculture, organised agriculture, the non-governmental
sector (NGOs), and the private sectors, is critical for post-settlement support to land reform
beneficiaries.
Issues Highlighted by Committee Members:

On the issue of whether the matter of land occupied by the SANDF, specifically the Lohatla
military base had been resolved, it was noted that 30 000 hectares lf the required 62 000
hectares had been provided to the community. Although in this instance, the court had ruled in
favour of the SANDF, the Commission was still trying to consult with the SANDF, or
alternatively, find land outside Lohatla. Madimbo was an example of where the SANDF had
made land available.

A major concern also arose on the issue of developers buying up large tracts of land. In many
instances, the communities did not have the skills to evaluate properties and were convinced of
23 AUGUST 2005
PAGE: 318 of 644
accepting deals from which they would not really benefit. This issue had been discussed with
the Department of Finance and a committee to address this had been set up. If a particular
community wanted to sell their land, they should consult with the Department.

A question was raised as to the rationale of the Department of Land Affairs preference of
acquiring privately owned land.
It was argued that in many instances, owners were not
cooperating, demanded high prices and private land was being left fallow. In response it was
noted that high land prices were a serious problem but that land subsidies received from
government were subtracted from the historical cost of land and the improvements made.
Furthermore, some farmers were demanding prices higher than market value but the
Commission insisted on the market prices and refused to pay higher as they had the right to
expropriate. The problem was that they could end up with high prices, as the Expropriation
Act required all the costs of the farmer to be included.

Land owned by absentee landlords was also a challenge and the Commission had given a report
to the Minister to consider.

There was a need to compile a register of land ownership, indicating the race and nationality of
the owners, but this plan had met with resistance by the media who argued that it would bring
back apartheid’s racial classification. However, the Commission stressed that this would not
be the case as such data was required for transformation purposes.

A concern was raised on the issue of a lack of proper consultation with communities regarding
land prices and conflict within communities. In response, the Commission maintained that
conflict could be resolved through consultation with communities and municipalities.

The verification of claims and boundaries was also raised, and the Commission noted that the
issue of boundaries did not affect people’s right of ownership of land.

The issue of mechanisms to assist farm-dwellers who were increasingly evicted from farms
was raised. It was stressed that this was of particular concern in Limpopo and Mpumlanaga. It
23 AUGUST 2005
PAGE: 319 of 644
was noted that the Land Reform (Labour Tenants) Act, 3 of 1996 should have been tied to the
Restitution of Land Rights Act, 22 of 1994, as amended, as the legislation (Labour Tenants
Act) protected the rights of farm dwellers and farm-workers.

20 000 tenancy claims in Kwazulu-Natal had been received. There were problems between
farm owners, labour tenants and farm workers, especially when farmers “loaded” payslips for
commodities like water and electricity. The South African Police (SAPS) had not responded
adequately to complaints from communities.

In terms of the implementation of the department’s budget, it was noted that a strategy and
implementation plan had been devise, which went into details of the projects. The department
was looking at the milestones and aligned these with the claims they were settling. This
information would be provided to the Committee as soon as possible.
3.Department of Health
Hospital Revitalization Project
The presentation by the Department of Health focused on the Hospital Revitalization Grant, which is
intended to provide strategic funding to enable provinces to plan, manage, modernize, rationalize and
transform the infrastructure, health technology, organizational management and evaluations of
hospitals so as to bring hospitals in line with national policy objectives. The Hospital Revitalization
Programme did not entail the building of new hospitals but instead revitalized existing ones.
Expenditure
The total medium-term expenditure framework for the nine provinces increases from approximately
R1 billion in 2005/ 2006 to R 1,2 billion in 2007/ 2008. Provinces are required to submit business
23 AUGUST 2005
PAGE: 320 of 644
cases so as to be included in the project. The National Department of Health appraises all business
cases so as to ensure that the Strategic Plan of provinces is adhered to and size, location, cost,
sustainability and level of service adheres to National Guidelines. The methodology of allocation was
based on needs and the capacity of provinces to spend their allocations. The allocations are heavily
dependent on the quality of information and prioritisation received from provinces.
Challenges
Three hospitals have been completed to date, 5 to be completed in the 2005/ 2006 period and 4
hospitals to be completed in the 2006/ 2007 period. The programme has faced with many challenges
including:

Delays in appointing contractors on site

Department of Public Works and contractors

Provincial capacity including technical staff

Reporting/ communication to and from provinces are ineffective and unreliable

Hospitals in rural areas
Regarding the expenditure on the grant, KwaZulu-Natal requested that their allocation be taken back
due to a problem with the provincial Department of Public Works. This challenge has been corrected.
Extensive rollovers had affected the allocation for the next year. The Committee focused some
attention on the oversight role of the National Department of Health. The National Department also
acted as the source of funding. The committee called for budgetary control systems that measure
delivery and quality – value for money.
23 AUGUST 2005
PAGE: 321 of 644
The Department of health has created extensive capacity through the new Project Management Unit to
deal with the Hospital Revitalization Project. It was reported that the completion of the Hospital
Revitalization Project would take approximately ten to twenty years for completion.
4. Report of the Joint Budget Committee on National and Provincial Expenditure from 1 October
to 31 December 2004, dated 22 June 2005:
1.
INTRODUCTION
The report analyses expenditure trends for the third quarter of the 2004/05 financial year. Part A of the
document analyses the expenditure of National Departments, while part B analyses the expenditure of
Provincial Departments.
A.
THE NATIONAL SPHERE OF GOVERNMENT
The Third Quarter Expenditure Report indicates that Departments that were under spending in the
second quarter continue to be the lowest spenders. These include the Departments of Communication,
Foreign Affairs, Sport and Recreation, Public Service and Administration, SAMDI and Statistics South
Africa. The Departments of Communications and Foreign Affairs were also the lowest spenders in the
third quarters of the previous two financial years.
The Department of Foreign Affairs, which has been the second-lowest spender for two consecutive
financial years, has provided an explanation for its low expenditure in previous reports5. By the third
quarter of the last financial year, the Department had only spent 44.34% of its budget compared to
47.48% in the current financial year. The Department of Communication, which was the lowest
23 AUGUST 2005
PAGE: 322 of 644
spender at 32.52% by the third quarter of the last financial year, is still the lowest spender for three
consecutive financial years with an expenditure of 41.29%.
It can thus be observed that the same Departments who were struggling to spend their budgets in the
last two financial years are still under spending in this financial year. However, all Departments have
spent marginally less than they had in the third quarter of the last financial year. Average expenditure
has decreased from 71.67% in the third quarter of the last financial year to 69.91% in this quarter. The
decrease in expenditure was evident from the beginning of the financial year.
2.
MONTHLY EXPENDITURE
The months under review are October, November and December 2004.
2.1.
DEPARTMENTAL EXPENDITURE TRENDS IN OCTOBER 2004
Average expenditure in October 2004 was 8.01%. Table 1 illustrates that the Department of Social
Development was the highest spending department in October 2004, which was also the case in the
previous financial year. Other departments have also followed similar spending trends as in preceding
financial years, e.g. the Department of Provincial and Local Government is still the lowest spender in
this financial year. The reason for the fluctuating expenditure of this Department, as well as other
departments that make large transfers periodically like the Department of Social Development is due to
the fact that the department makes transfers during certain months. Although the Department of
Provincial and Local Government is the lowest spender, its expenditure is higher than it was in the
same month of the last financial year when it spent only 1.96% of its budget in October 2003.
23 AUGUST 2005
2.1.1
PAGE: 323 of 644
Highest Spending departments in October
The social services sector is still the highest spending sector and the central government administration
sector is the lowest spending sector.
Table1: Highest spending departments in October
R’000
Total Budget
Total
%Expenditure
Expenditure
for the month
Social Development
4598575
1123278
24.43%
Water Affairs and Forestry
3823112
406411
10.63%
Environmental Affairs and Tourism
1652268
173195
10.48%
203149
20057
9.87%
Foreign Affairs
2546649
250558
9.84%
The Presidency
175852
17196
9.78%
4826781
468158
9.70%
Government Communications and
Information Services
Housing
2.1.2. Lowest Spending departments in October
Table2: Lowest spending departments in October
R’000
Provincial and Local Government
Total Budget
Total
%Expenditure
Expenditure
for the month
13137381
318564
2.42%
Agriculture
1449391
41030
2.83%
Mineral and Energy
1945143
64786
3.33%
23 AUGUST 2005
SA Management Development Institute
Sport and Recreation South Africa
2.2
PAGE: 324 of 644
40887
1764
4.31%
294213
14076
4.78%
DEPARTMENT EXPENDITURE TRENDS IN NOVEMBER 2004
Average Expenditure in November 2004 rose slightly to 8.23%. Tables 3 and 4 indicate that the
Department of Provincial and Local Government was the highest spender in November 2004, and the
lowest spender was the Department of Social Development.
2.2.1.
Highest Spending departments in November
Table 3: Highest spending departments in November
R’000
Total Budget
Provincial and Local Government
Total
%Total
Expenditure
Expenditure
13137381
2364852
18.00%
1282412
158214
12.34%
14021916
1628285
11.61%
Transport
6769171
720636
10.65%
Foreign Affairs
2546649
263675
10.35%
42114
4353
10.34%
Science and Technology
National Treasury
Independent Complaints Directorate
2.2.2.
Lowest Spending departments in November
Table 4: Lowest spending departments in November
Total
%Total
23 AUGUST 2005
R’000
PAGE: 325 of 644
Total Budget
Social Development
Expenditure
Expenditure
4598575
25556
0.56%
Public Service and Administration
144296
6261
4.34%
Sport and Recreation South Africa
294213
13598
4.62%
Statistics South Africa
500190
23817
4.76%
40887
1972
4.82%
Minerals and Energy
1945143
95491
4.91%
Agriculture
1449391
72091
4.97%
SA Management Development Institute
2.3.
DEPARTMENTAL EXPENDITURE IN DECEMBER 2004
Average expenditure in December 2004 dropped to 7.03%. The Department of Minerals and Energy
was the highest spender in December, spending 27.92% of its budget in this month. The department
has explained that the increase in expenditure was attributed to a huge payment of R447.688 Million
made to ESKOM for the National Electrification Programme.
2.3.1.
Highest Spending departments in December
Table 5: Highest spending departments in December
%
Expenditure
Expenditure
Total Budget
for the month
of the month
Minerals and Energy
1945143
543157
27.92%
Agriculture
1449391
154604
10.67%
Housing
4826781
498336
10.32%
R’000
23 AUGUST 2005
PAGE: 326 of 644
Foreign Affairs
Independent Complaints Directorate
2546649
237348
9.32%
42114
3841
9.12%
2.3.2. Lowest Spender in December
Table 6: Lowest spending Departments in December
% Total
Total
R’000
Total Budget
Education
Expenditure
Expenditure for the Month
11405095
154603
1.36%
40887
593
1.45%
Social Development
4598575
119015
2.59%
Communication
1679917
61074
3.64%
SA Management Development Institute
2.4.
OVERALL EXPENDITURE AT THE END OF THE THIRD QUARTER
The Social services sector is the highest spending sector with an average expenditure of 77.52%.
Departmental expenditure has dropped slightly from the previous financial year from 71.67% in the
third quarter of the previous financial year to 69.71% in this quarter. It can also be observed that
departments are consistent in terms of their spending trends and that there are no major changes from
the last financial year.
The Department of Communication is still cause for concern, as has been the case in the previous two
financial years. The Department however, has increased its expenditure marginally from 32.52% in
the third quarter of the 2003/04 financial year, to 41.29% at the end of the third quarter of the 2004/05
financial year. The Department of Communication’s expenditure has continuously been a cause for
23 AUGUST 2005
PAGE: 327 of 644
concern for the Committee due to the department’s trend of under spending on its budget and then
spending a huge chuck of the budget in the last month of the year (approximately half of the
department’s budget is usually spent in the last month of the financial year)4. The Committee has
previously recommended that the department appear before it.
2.4.1. Highest spending Department for the quarter ending 31 December 2004
Table 7: highest spending departments as at 31 December 2004
Expenditur
R’000
Total
Total
e for the
%Expenditu
Expenditur
%
Budget
Month
re for the
e to date
Expenditure
Month
to date
Education
1140595
154603
1.36%
10400678
91.19%
Housing
4826781
498336
10.32%
3838498
79.53%
Parliament
576144
49011
8.51%
441104
76.56%
GCSI
203149
11228
5.53%
152100
74.87%
6769171
604006
8.92%
5051498
74.63%
Transport
2.4.2. Lowest Spending Departments for the quarter ending 31 December 2004
Table 8: Lowest spending departments as a 31 December 2004
Expenditur
R’000
.
Total
Total
e for the
%
Expenditur
%Expenditu
Budget
Month
Expenditure
e to date
re
23 AUGUST 2005
PAGE: 328 of 644
for the
To date
month
Communications
1679917
61074
3.64%
693646
41.29%
40887
593
1.45%
18589
45.46%
2546649
237348
9.32%
1209208
47.48%
500190
27076
5.41%
245661
49.11%
SA Management
Development Institute
Foreign Affairs
Statistics South Africa
Chart 1: Lowest Spending Departments at the end of third quarter 2004/05
Chart 1:
Lowest Spending Departments
50.00%
48.00%
46.00%
44.00%
Series1
42.00%
40.00%
38.00%
s
tic
St
at
is
Fo
re
ig
n
So
ut
h
Af
Af
ric
a
fa
irs
I
SA
M
D
C
om
m
un
ic
at
io
ns
36.00%
Chart 2: Lowest Spending Departments (Financial year 2003/04)
23 AUGUST 2005
PAGE: 329 of 644
Lowest Spending Departments
96.00%
94.00%
92.00%
90.00%
88.00%
Series1
86.00%
84.00%
82.00%
En
er
gy
d
Fo
er
al
s
an
an
d
irs
in
ffa
Pu
bl
ic
W
M
at
er
A
ce
Se
rv
i
re
st
ry
fa
irs
Af
e
om
m
an
d
Ad
H
in
is
tra
tio
n
M
SA
Fo
re
i
gn
Af
fa
i
rs
D
I
80.00%
Chart 3: Highest spending Department at end of the third quarter 2004/05
Highest spending Department
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
Series1
40.00%
30.00%
20.00%
10.00%
0.00%
Education
Housing
Parliament
GCIS
Transport
23 AUGUST 2005
PAGE: 330 of 644
Chart 4: Highest Spending Departments (END of 2003/04)
Highest Spending Departments
101.20%
101.00%
100.80%
100.60%
100.40%
100.20%
Series1
100.00%
99.80%
99.60%
99.40%
Public Service
Commission
Safety and
Security
Parliament
Government
Communications
and Information
Defence
Public Works
99.20%
2.5.
CURRENT, TRANSFER AND CAPITAL EXPENDITURE OF NATIONAL
DEPARTMENTS
National Departments have increased their Capital expenditure tremendously.
Average Current
expenditure is 68.47%; transfers are 71.39% and Capital expenditure at 64.23%. In this regard, the
highest spenders of Current expenditure are Parliament (76.94%), Public Enterprises (76.47%) and
Public Works (75.58%).
In Contrast, the lowest spenders of Current expenditure are SAMDI
(36.28%), Sport and Recreation South Africa (41.51%), Social Development (41.70%) and Education
(48.18%).
In this financial year, the National Treasury added another dimension to its reporting. Previously, the
Treasury only reported on Current and Capital Expenditure. The Treasury has now added transfers
and subsidies to its report. In this regard it is now possible to clearly monitor transfers to subsidiaries
23 AUGUST 2005
PAGE: 331 of 644
and provinces by departments. As is to be expected, the Social Services sector makes the most
transfers and subsidies. The highest transfers were made by the Department of Correctional Services
(349.08%), Government Communications and Information Services (99.93%) and Education
(93.13%).
Departments have decreased their capital expenditure slightly from 65.82% in the third quarter of the
2003/04 financial year to 64.23% of the third quarter of the 2004/05 financial year. However, the gap
between current and capital expenditure has decreased. Table 9 and 10 indicate trends in capital
expenditure in Departments.
Highest Capital Expenditure
Table 9
Capital
Expenditure % Capital
R'000
Capital
Capital for
Expenditure
Budget December
for the month to date
% Capital
Expenditure expenditure
to date
Sport and Recreation South Africa
2616
7746
296.10%
42812
1636.54%
Science and Technology
1015
0
0.00%
4098
403.74%
Housing
3922
515
13.13%
6680
170.32%
Independent Complaints Directorate
1336
839
62.80%
1609
120.43%
385278
62163
16.13%
512949
133.14%
Water Affairs and Forestry
23 AUGUST 2005
PAGE: 332 of 644
The Department of Sport and Recreation South Africa has indicated that its records do not indicate an
overexpenditure on its capital budget. However, the Department indicated that it needs to investigate
the matter further and provide a response to the Committee.
Lowest Capital Expenditure
Table 10
% Capital
Expenditur Capital
R'000
Home Affairs
Capital
Capital
e for the
Budget
Expenditure month
% Capital
Expenditur expenditur
e to date
e to date
602352
2823
0.47%
43203
7.17%
995
33
3.32%
137
13.77%
3697
1
0.03%
233
6.30%
Defence7
71613
0
0.00%
0
0.00%
Transport
22453
389
1.73%
3769
16.79%
S A Management Development
Institute
Arts and Culture,
B.
THE PROVINCIAL SPHERE OF GOVERNMENT
Part B of the report analyses the expenditure trends of provinces by the end of the third quarter of the
2004/05 financial year. The figures in the third quarter report include the additional funds totaling R4,
3 billion allocated to provinces on 26 October 2004 through the adjustments budget. Provinces have
spent 70.6% of their adjusted budget in the first nine months of the financial year8.
23 AUGUST 2005
PAGE: 333 of 644
Most spending pressure facing provinces is in the Departments of Social Development. Provinces
received an increase of R3, 3 billion in this regard through the adjustments budget, and have spent
73.4% or R37, 2 billion of their R50, 7 billion adjusted budget. This represents an increase of R6, 4
billion or 20.9% over the same period last year.
The National Treasury, in a report on the state of provincial expenditure, indicated that some provinces
also face some risks from their personnel expenditure, i.e. in the Departments of Education and Health.
The total personnel expenditure in all nine provinces is R65, 7 billion or 73.6% of the R89, 3 billion
personnel budget.
This fact is clearly indicated by the imbalance between current and capital expenditure in this report.
The biggest underspending problem in provinces continues to be the slow rate of spending on capital
expenditure, as provinces spent 46.4% or R5, 6 billion of their combined R12 billion adjusted capital
budgets. This is significantly lower than the 64.23% spent by national departments9.
Fact sheet on Provincial Spending10.
The highest share (39.3%) of provincial capital budgets was for roads, transport and public works
departments, which spent R2.6 billion or 54.3% against the total R4.7 billion adjusted budget.
Education spending totalled R47.8 billion or 72.6% of the R65.7 billion total adjusted budget for
education. The spending pattern reflected a R4.3 billion or 9.9 percent increase compared with
spending during the same period in 2003/04. Capital spending in education was relatively slow at 42.9
percent or R1.3 billion up to the end of December 2004. Personnel expenditure was high at 74.5
percent.
Health spending totalled R28.7-billion (70.2%), which was R2.5 billion higher compared with the
same period last year. Capital spending in health was also relatively slow at 45.4% or R1.3-billion.
3.
PROVINCIAL ANALYSIS
The expenditure pattern of provinces in the third quarter of the current financial year is as follows:
23 AUGUST 2005
3.1.
PAGE: 334 of 644
EASTERN CAPE PROVINCE
Table 11 illustrates that the Eastern Cape Province had spent an average of 72.24% of its budget by the
end of the third quarter. The Province’s Departments have spent their budgets satisfactorily, with the
Provincial Treasury being the lowest spender at 57.48%.
Table
11:
Total
Expenditure
of
Departments
in
the
Eastern
Province
Total
R’000
1.Education
2.Health
Percentage
Percentage
Expenditu Expenditure
Total
Total
re for the for the
Expenditu Expenditure
Budget
Quarter
re to date to date
Quarter
Total
10795266
2965147
27.47%
7946951
73.62%
5221266
1373348
26.30%
3963872
75.92%
9687860
1749765
18.06%
6660730
68.75%
3.Social Development
4.Office of the Premier
225967
48390
21.41%
138604
61.34%
5.Provincial Legislature
95549
23676
24.78%
68949
72.16%
1821793
553773
30.40%
1509375
82.85%
1039212
233758
22.49%
758145
72.95%
882143
255277
28.94%
585672
66.39%
Environment &Tourism
799624
226796
28.36%
489081
61.16%
10.Transport
302586
80016
26.44%
219658
72.59%
11.Provincial Treasury
155030
33329
21.50%
89114
57.48%
6.Roads & Public Works
7.Housing, Local
Government & Traditional
Affairs
8.Agriculture
9.Economic Affairs,
Cape
23 AUGUST 2005
PAGE: 335 of 644
12.Sport, Recreation, Arts &
Culture
239883
50329
20.98%
154805
64.53%
11322
3271
28.89%
8573
75.72%
31277501
7596875
24.29% 22593529
72.24%
13.Safety & Liaison
Total
The expenditure of the Province is also evenly distributed, i.e. 73.65% current expenditure, 69.25%
transfers and 77.22% capital expenditure11. Several departments are underspending significantly on
capital expenditure.
These include the Departments of Transport (6.93%), Agriculture (6.04%),
Provincial Legislature (7.89%) and Social Development (9.19%).
Chart 5
Eastern Cape Departmental Expenditure as at 31 Dec.
90.00%
80.00%
70.00%
60.00%
50.00%
Series1
40.00%
30.00%
20.00%
10.00%
0.00%
1
3.2.
2
3
4
5
FREE STATE PROVINCE
6
7
8
9
10
11
12
13
23 AUGUST 2005
Table
12:
Total
PAGE: 336 of 644
Expenditure
of
Departments
in
the
Free
State
Province
Total
Percentage
Expenditur Percentage
R'000
Total Budget
Total
Total
e for the
Expenditure for Expenditu Expenditure
Quarter
the Quarter
re to date to date
1.Education
4617650
1172406
25.39%
3162295
68.48%
2.Health
2757267
730151
26.48%
2024257
73.42%
3.Social Development
3632596
995305
27.40%
2637104
72.60%
Premier
85380
17920
20.99%
54924
64.33%
5.Free State Legislature
61964
16848
27.19%
45337
73.17%
249050
39073
15.69%
161576
64.88%
134022
29907
22.31%
78351
58.46%
763490
177506
23.25%
445140
58.30%
808983
267248
33.04%
548716
67.83%
27140
5376
19.81%
16198
59.68%
257283
45938
17.86%
122304
47.54%
94262
20418
21.66%
55774
59.17%
4.Department of the
6.Tourism, Environmental
& Economic Affairs
7.Free State Provincial
Treasury
8.Local Government &
Housing
9.Public Works, Roads &
Transport
10.Public Safety, Security
& Liaison
11.Agriculture
12.Sport, Arts, Culture,
23 AUGUST 2005
PAGE: 337 of 644
Science & Technology
Total
13489087
3518096
26.08%
9351976
69.33%
The Free State province has spent an average of 69.33% of its budget, with the lowest spender being
the Department of Agriculture at 47.54%, followed by Local Government and Housing and the
provincial Treasury with an expenditure of 58.30% and 58.46% respectively.
The Free State Province is underspending significantly in terms of Capital Expenditure.
The
Province’s expenditure reflects averages of 70.50% Current expenditure, 71.18% transfers and 41.97%
Capital expenditure.
The provincial Department of Agriculture is the lowest spender of transfers and Capital expenditure5.
Chart 6
Free State Departmental Expenditure as at 31 Dec.
80.00%
70.00%
60.00%
50.00%
40.00%
Series1
30.00%
20.00%
10.00%
0.00%
1
2
3
4
5
6
7
8
9
10
11
12
23 AUGUST 2005
3.3.
PAGE: 338 of 644
GAUTENG PROVINCE
Table13: Total Expenditure of Departments in the Gauteng Province
Percentage
Total
R'000
1.Education
Expenditure Total
Percentage Total
Total
Expenditure for for the
Expenditure Expenditure to
Budget
the Quarter
to date
Quarter
date
10027349
2885309
28.77%
7504735
74.84%
8943840
2206943
24.68%
5856157
65.48%
6342534
1800729
28.39%
4675026
73.71%
101402
25657
25.30%
66505
65.59%
98695
22137
22.43%
63574
64.41%
Economic Affairs
1207232
131587
10.90%
601332
49.81%
7.Housing
1440226
371209
25.77%
1011733
70.25%
237367
95371
40.18%
138174
58.21%
1787446
411952
23.05%
1138334
63.68%
2.Health
3.Social
Development
4.Office of the
Premier
5.Gauteng
Provincial
Legislature
6.Finance &
8.Local
Government
9.Public Transport,
Roads & Works
12 See
Appendix 8.
23 AUGUST 2005
PAGE: 339 of 644
10.Community
Safety
162669
30396
18.69%
49211
30.25%
206579
43008
20.82%
114971
55.65%
142252
39702
27.91%
89427
62.87%
509181
129373
25.41%
310075
60.90%
31206772
8193373
26.26%
21619254
69.28%
11.Agriculture,
Conservation &
Environment
12.Sport,
Recreation, Arts
and Culture
13.Gauteng Shared
Services Center
Total
The Gauteng Province had spent 69.28% of its budget at the end of the third quarter. Only the
Departments of Education, Social Development, and Housing spent more than this average, with the
rest (11), spending less than the average. The Department of Community Safety was the lowest
spender, spending 30.25% of its budget, followed by Finance and Economic Affairs (49.81%).
The Gauteng Province is the lowest spender of Capital expenditure, spending only 19.15% of its
capital budget. The lowest spenders of capital budgets are the Departments of Public Transport, Roads
and Works, Finance and Economic Affairs (5.44%) and Health (14.44%)13.
23 AUGUST 2005
PAGE: 340 of 644
Chart 7:
Gauteng Departmental Expenditure as at 31 Dec.
80.00%
70.00%
60.00%
50.00%
40.00%
Series1
30.00%
20.00%
10.00%
0.00%
1
3.4.
2
3
4
5
6
7
8
9
10
11
12
13
KWAZULU-NATAL PROVINCE
Table 14: Total Expenditure of Departments in the KwaZulu-Natal Province
R'000
1.Education
2.Health
Total
Percentage
Percentage
Expenditure
Expenditure
Total
Total
for the
for the
Expenditure to Expenditure to
Budget
Quarter
Quarter
date
Total
date
13068714
3369447
25.78%
9518297
72.83%
8875985
2349877
26.47%
6435717
72.51%
10950554
2988392
27.29%
8617471
78.69%
201884
38006
18.83%
98609
48.84%
3.Social Welfare &
Population
Development
4.Office of the
Premier
23 AUGUST 2005
PAGE: 341 of 644
5.Provincial
Parliament
130792
23349
17.85%
70869
54.18%
963846
253774
26.33%
648687
67.30%
146897
46487
31.65%
127597
86.86%
Treasury
694021
34754
5.01%
115666
16.67%
9.Housing
975915
203188
20.82%
684709
70.16%
17127
4461
26.05%
9927
57.96%
25212
6854
27.19%
18299
72.58%
487186
115898
23.79%
275982
56.65%
1809647
497656
27.50%
1405631
77.67%
402004
92841
23.09%
244964
60.94%
200608
14695
7.33%
24095
12.01%
Recreation
43652
5768
13.21%
11915
27.30%
17.Reconstruction
-
6.Agriculture &
Environmental
Affairs
7.Economic
Development
8.Provincial
10Community
Safety & Liaison
11.The Royal
Household
12.Traditional &
Local Government
Affairs
13Transport
14.Works
15.Arts, Culture &
Tourism
16.Sport &
-
-
-
-
23 AUGUST 2005
PAGE: 342 of 644
& Development
Total
38994044
10045447
25.76%
28308435
72.60%
The Departments of Arts and Culture and Sports and Recreation were the lowest spenders at the end of
the third quarter, spending 0.05% and 2.10% of their budgets respectively. The Province spent 71.91%
of its current budget and 79.35% of its transfer budget. Overall, the Province spent 48.25% of its
capital budget, with the Departments of Arts, Culture and Tourism (2.14%) and Sport and Recreation
(3.32%) being the lowest spenders of capital budgets14.
Chart 8
Kwazulu-Natal Departmental Expenditure as at 31 Dec.
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
Series1
40.00%
30.00%
20.00%
10.00%
0.00%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
23 AUGUST 2005
3.5.
PAGE: 343 of 644
LIMPOPO PROVINCE
Table 15: Total Expenditure of Departments in the Limpopo Province
Total
Percentage
Percentage
Expenditure Total
Total
Total
Expenditure for for the
Expenditure Expenditure
Budget
the Quarter
to date
Quarter
to date
R'000
1.Education
9689857
2537041
26.18%
7013229
72.38%
2.Health
4239622
1047859
24.72%
2959007
69.79%
3.Welfare
6712055
1675453
24.96%
4749914
70.77%
4.Sport, Arts & Culture
78788
18686
23.72%
52664
66.84%
5.Safety, Security & Liaison
20883
4416
21.15%
12626
60.46%
6.Office of the Premier
261144
64139
24.56%
134027
51.32%
7.Local Government & Housing
857720
168477
19.64%
517674
60.35%
8.Provincial Legislature
103167
19051
18.47%
57480
55.72%
1518006
328028
21.61%
1026010
67.59%
Development
852250
205179
24.07%
560722
65.79%
11.Agriculture
795233
184359
23.18%
514477
64.70%
12.Transport
487290
142859
29.32%
358630
73.60%
25616015
6395547
24.97%
17956460
70.10%
9.Public Works
10.Finance & Economic
Total
23 AUGUST 2005
PAGE: 344 of 644
Limpopo Province spent 70.10% of its budget in the first nine months of the financial year. All
Departments had spent more than half of their budgets, with the Office of the Premier being the lowest
spender at 51.32%.
Capital expenditure in Limpopo by most Departments is very poor. Overall, the Province spent
54.64% of its capital budget. The Departments of Public Works and Agriculture have spent 45% and
34% of their capital budgets, respectively.
Chart 9
Limpopo Departmental Expenditure as at 31 Dec.
80.00%
70.00%
60.00%
50.00%
40.00%
Series1
30.00%
20.00%
10.00%
0.00%
1
3.6.
Table
2
3
4
5
6
7
8
9
10
11
12
MPUMALANGA PROVINCE
16:
Total
Expenditure
of
Departments
in
the
Mpumalanga
Province
Total
Percentage
Percentage
Expenditure Expenditure Total
R'000
Total
Total
for the
for the
Expenditure to Expenditure
Budget
Quarter
Quarter
date
to date
1.Education
5206947
1300949
24.98%
3595256
69.05%
2.Health
2393885
587868
24.56%
1560220
65.18%
3.Social Development
3368928
1029686
30.56%
2580891
76.61%
23 AUGUST 2005
PAGE: 345 of 644
4.Office of the Premier
111780
27027
24.18%
77319
69.17%
5.Finance
192162
53150
27.66%
113433
59.03%
Administration
500735
122207
24.41%
323703
64.65%
7.Roads & Transport
834874
211900
25.38%
505737
60.58%
8.Safety & Security
36268
8926
24.61%
25079
69.15%
551394
170718
30.96%
434059
78.72%
10.Provincial Legislature
51984
13396
25.77%
37201
71.56%
11.Culture, Sport & Recreation
72826
16803
23.07%
50449
69.27%
Planning
175236
67503
38.52%
135531
77.34%
13.Public Works
290669
80224
27.60%
190348
65.49%
Total Payments
13787688
3690357
26.77%
9629226
69.84%
6.Agriculture & Land
9.Local Government & Housing
12.Economic Development &
Mpumalanga Province had spent 69.84% of its budget by the end of the third quarter. Capital spending
in the province is very low at 35.29%; compared to 69.82% current expenditure and 78.66% transfer
expenditure. The lowest spenders of Capital expenditure are the Departments of Local Government
and housing (4%), Culture, Sport and Recreation (8%), Health (15%), Safety and Security (12%) and
Education (43%).
Chart10
Mpumalanga Departmental Expenditure as at 31 Dec.
90.00%
80.00%
70.00%
60.00%
50.00%
Series1
40.00%
30.00%
20.00%
10.00%
0.00%
1
2
3
4
5
6
7
8
9
10
11
12
13
23 AUGUST 2005
3.7.
PAGE: 346 of 644
NORTH WEST PROVINCE
Table 17: Total Expenditure of Departments in the North West Province
Total
Percentage
Expenditu Expenditu Total
Total
Percentage Total
re for the re for the Expenditu Expenditure to
Budget Quarter
Quarter
re to date date
R’000
1.Education
5424608
1465844
27.02%
3896408
71.83%
2.Health
2664370
655000
24.58%
1830426
68.70%
3.Social Development
4313458
994612
23.06%
3201225
74.21%
4.Office of the Premier
153270
33134
21.62%
98357
64.17%
5.Provincial Legislature
77463
13921
17.97%
47104
60.81%
6.Safety & Liaison
20679
5576
26.96%
14313
69.22%
7.Finance & Economic Development
311877
59492
19.08%
173281
55.56%
8.Local government & Housing
688775
129571
18.81%
290824
42.22%
1145047
308369
26.93%
756451
66.06%
367939
89264
24.26%
228910
62.21%
Environment & Tourism
512733
121683
23.73%
338517
66.02%
12.Sport, Arts & Culture
170383
37892
22.24%
102584
60.21%
13.Contingency Reserve
30627
9.Transport & Roads
10.Public Works
11.Agriculture, Conservation,
-
0.00%
-
0.00%
1588122
Total
9
3914358
24.65% 10978400
69.13%
23 AUGUST 2005
PAGE: 347 of 644
The North West Province has spent 69.123% of its budget, with most Departments spending above
60% of their budgets. The lowest spenders are the Departments of Local Government and Housing
and Finance and Economic Affairs have spent 42.22% and 55.56% respectively on their budgets.
The Province is on track with its capital and transfer expenditure, but has spent only 46.61% of its
capital budget15. The lowest spenders of capital expenditure are the Office of the Premier (12.08%),
the Departments of Social Development (19.36%) and Agriculture, Conservation, Environmental
Affairs and Tourism (29.42%).
Chart 11
North West Departmental Expenditure as at 31 Dec.
80.00%
70.00%
60.00%
50.00%
40.00%
Series1
30.00%
20.00%
10.00%
0.00%
1
3.8.
2
3
4
5
6
7
8
9
10
11
12
13
NORTHERN CAPE PROVINCE
Table 18: Total Expenditure of Departments in the Northern Cape Province
Total
Percentage
Expenditure Expenditure Total
R'000
1.Education
Percentage
Total
for the
for the
Expenditure Expenditur
Budget
Quarter
Quarter
to date
e to date
1398132
389641
27.87%
1083601
77.50%
874839
216125
24.70%
602021
68.82%
1317875
296402
22.49%
935085
70.95%
4.Office of the Premier
67781
12606
18.60%
46034
67.92%
5.Legislature
46226
10085
21.82%
31660
68.49%
6.Provincial Safety & Liaison
12143
2673
22.01%
7989
65.79%
2.Health
3.Social Services & Population
Development
23 AUGUST 2005
PAGE: 348 of 644
7.Transport, Roads & Public Works
373975
97074
25.96%
234920
62.82%
8.Economic Affairs & Tourism
48049
9898
20.60%
22870
47.60%
9.Sport, Arts & Culture
53014
9953
18.77%
38715
73.03%
10.Finance
68288
12365
18.11%
35121
51.43%
251492
49236
19.58%
198591
78.97%
129954
25513
19.63%
72497
55.79%
4641768
1131571
24.38%
3309104
71.29%
11.Housing & Local Government
12.Agriculture, Land Reform,
Environment & Conservation
Total
The Northern Cape Province had spent 71.29% of its budget by the end of the third quarter, with the
Department of economic Affairs and Tourism being the lowest spender at 47.60%, followed by
Finance at 51.43%.
Although the Capital expenditure of the province is low at 52.945, the Province is still one of the major
spenders of capital expenditure. This is relatively low compared to the 72.49% current expenditure
and 72.41% transfer expenditure.
Chart 12
Northern Cape Departmental Expenditure as at 31 Dec.
90.00%
80.00%
70.00%
60.00%
50.00%
Series1
40.00%
30.00%
20.00%
10.00%
0.00%
1
3.9.
2
3
4
5
6
7
8
9
10
11
12
WESTERN CAPE PROVINCE
Table 19: Total Expenditure of Departments in the Western Cape Province
R'000
Total
Total
Percentage
Total
Percentage
23 AUGUST 2005
PAGE: 349 of 644
Budget
Expenditure Expenditure
Expenditure Total
for the
for the
to date
Quarter
Quarter
Expenditure to
date
1.Education
5516384
1541706
27.95%
4040551
73.25%
2.Health
4878343
1256807
25.76%
3463187
70.99%
4326504
1099111
25.40%
3110194
71.89%
297241
64256
21.62%
177084
59.58%
46861
10974
23.42%
34110
72.79%
6.Provincial Treasury
108980
23370
21.44%
68069
62.46%
7.Community Safety
161627
48430
29.96%
116222
71.91%
8.Housing
712881
174597
24.49%
371929
52.17%
137417
31314
22.79%
94753
68.95%
1882316
399152
21.21%
1066682
56.67%
230644
60393
26.18%
135522
58.76%
89022
13059
14.67%
36685
41.21%
Tourism
126536
66971
52.93%
97223
76.83%
14.Cultural Affairs & Sport
156239
36043
23.07%
102713
65.74%
18670995
4826183
25.85%
12914924
69.17%
3.Social Services & Poverty
Alleviation
4.Provincial Administration
5.Provincial Parliament
9.Environmental Affairs &
Development Planning
10.Transport & Public Works
11.Agriculture
12.Local Government
13.Economic Development &
Total
23 AUGUST 2005
PAGE: 350 of 644
The Western Cape Province has spent 69.17% of its budget, with the lowest spender being the
Department of Local Government, which had spent only 41.21% of its budget by the end of the third
quarter.
The Province had spent 46.25% of its capital expenditure by the end of the third quarter. The lowest
spenders of capital expenditure are the Departments of Education (26%), Health (33%), Agriculture
(10%) and Local Government (13%).
Chart 13
Western Cape Departmental Expenditure as at 31 Dec.
90.00%
80.00%
70.00%
60.00%
50.00%
Series1
40.00%
30.00%
20.00%
10.00%
0.00%
1
4.
2
3
4
5
6
7
8
9
10
11
12
13
14
CONCLUSION
Departmental spending has not changed much and spending trends are still similar to the previous
financial year. The overall expenditure of national departments has also decreased marginally in this
financial year.
The Joint Budget Committee has previously requested departments to provide their cash flow
projections, but only three Departments heeded this call in this financial year.
Departments of Foreign Affairs, Home Affairs and Agriculture.
These are the
23 AUGUST 2005
PAGE: 351 of 644
In the 2003/04 financial year, however, several departments had provided these documents. This
exercise did not prove very effective in terms of strengthening the Committee’s financial oversight
functions over departments for three reasons. These are

Departments rarely spend according to their cash flow projections. It is therefore difficult to
keep track of whether departments are likely to overspend or underspend on their allocated
budgets.

The cash flow projections provided an aggregate figure of what the department had planned to
spend in a particular month. The projections do not specify what the funds are to be used for
and what programmes are targeted for the month. The cash flow projections, therefore, just
indicated the breakdown in expenditure without any non-financial information regarding the
specific targeted outcomes of the expenditure.

The cash flow projections do not distinguish between current, transfer and capital expenditure.
This becomes particularly problematic when a department has spent exactly what it was
allocated in a particular month, but was still underspending significantly in respect of capital
expenditure, as was the case with the Department of Trade and Industry at the third quarter of
the 2003/04 financial year.
The Department of Communication, SAMDI and Foreign Affairs continue to be the lowest spenders.
These Departments have consistently under spent in the last three quarters and are likely to continue
the trend in this financial year16.
Although the gap between current and capital expenditure is narrowing down in national departments,
this is not the case in provinces. The imbalance between current and capital expenditure is still
significant at the provincial level of government. In addition, in several provinces funds are locked in
the provincial treasuries and have not been used. Furthermore, several provincial departments of Local
23 AUGUST 2005
PAGE: 352 of 644
Government, Finance and Economic Affairs are underspending in respect of their capital budgets.
This is cause for concern as these are departments that are at the centre of service delivery. This is
particularly true in largely rural and densely populated provinces such as Limpopo and the North West
Province.
Appendix 1: October 2004 Expenditure in National Departments
Total
R'000
Voted Amounts
Total Budget Expenditure
% Expenditure in
% Expenditure in
October 2004
October 2003
153531637
12290660
8.01%
8.60
24327550
1258559
5.17%
5.29
The Presidency
175852
17196
9.78%
6.93
Parliament
576144
49011
8.51%
7.68
Foreign Affairs
2546649
250558
9.84%
6.05
Home Affairs
2377615
151053
6.35%
10.35
13137381
318564
2.42%
1.96
5513909
472177
8.56%
9.07
Central Government Administration
Provincial and Local Government
Public Works
Financial and Administrative
Services
9.92
15060896
874190
5.80%
Government Communications and
Information Services
5.50
203149
20057
9.87%
National Treasury
14021916
800462
5.71%
10.05
Public Enterprises
77377
4992
6.45%
6.25
144296
11372
7.88%
6.74
73081
5948
8.14%
7.87
Public Service and Administration
Public Service Commission
23 AUGUST 2005
S A Management Development Institute
PAGE: 353 of 644
40887
1764
4.31%
8.69
500190
29595
5.92%
10.55
28803489
3208057
11.14%
9.48
1176097
87502
7.44%
5.97
11405095
1028339
9.02%
7.81
Health
8818400
764299
8.67%
11.29
Labour
1228697
78888
6.42%
9.25
Science and Technology
1282412
111675
8.71%
5.24
Social Development
4598575
1123278
24.43%
13.87
294213
14076
4.78%
9.10
57538746
4846459
8.42%
9.06
8457492
727165
8.60%
7.61
19411819
1535182
7.91%
10.56
42114
3390
8.05%
6.64
5054417
417003
8.25%
7.76
24572904
2163719
8.81%
8.48
27800956
2103395
7.57%
8.61
Agriculture
1449391
41030
2.83%
6.04
Communications
1679917
103299
6.15%
4.99
Environmental Affairs and Tourism
1652268
173195
10.48%
8.44
Housing
4826781
468158
9.70%
9.99
Land Affairs
2031882
178616
8.79%
7.85
Minerals and Energy
1945143
64786
3.33%
9.21
Trade and Industry
3623291
277725
7.66%
7.67
Transport
6769171
390175
5.76%
8.64
Statistics South Africa
Social Services
Arts and Culture,
Education
Sport and Recreation South Africa
Justice and Protection Services
Correctional Services
Defence
Independent Complaints Directorate
Justice and Constitutional Development
Safety and Security
Economic Services and
Infrastructure Development
23 AUGUST 2005
Water Affairs and Forestry
PAGE: 354 of 644
3823112
406411
10.63%
7.64
Appendix 2: November Expenditure in National Departments
R'000
Voted Amounts
Total Budget
153531637
Total
% expenditure in % Expenditure in
Expenditure
November 2004
13564756
8.84%
Central Government
Administration
November 2003
7.
12
24327550
3243210
13.33%
The Presidency
175852
11548
6.57%
7
Parliament
576144
49011
8.51%
6
Foreign Affairs
2546649
263675
10.35%
5
Home Affairs
2377615
146401
6.16%
7
13137381
2364852
18.00%
18
5513909
407723
7.39%
7
15060896
1683448
11.18%
5.
Provincial and Local Government
Public Works
Financial and Administrative
Services
Government Communications and
Information Services
12
203149
11028
5.43%
National Treasury
14021916
1628285
11.61%
5
Public Enterprises
77377
5759
7.44%
7
144296
6261
4.34%
9
73081
6326
8.66%
6
Public Service and Administration
Public Service Commission
S A Management Development
Institute
8
40887
1972
4.82%
23 AUGUST 2005
Statistics South Africa
PAGE: 355 of 644
500190
23817
4.76%
6
28803489
1940534
6.74%
7.
1176097
59368
5.05%
4
11405095
835165
7.32%
8
Health
8818400
724720
8.22%
5
Labour
1228697
123912
10.08%
5
Science and Technology
1282412
158214
12.34%
12
Social Development
4598575
25556
0.56%
6
294213
13598
4.62%
9
57538746
4418486
7.68%
7.
8457492
733629
8.67%
6
19411819
1107190
5.70%
5
42114
4353
10.34%
6
Social Services
Arts and Culture,
Education
Sport and Recreation South Africa
Justice and Protection Services
Correctional Services
Defence
Independent Complaints Directorate
Justice and Constitutional
Development
8
5054417
418538
8.28%
24572904
2154776
8.77%
8.
27800956
2279078
8.20%
7.
Agriculture
1449391
72091
4.97%
6.
Communications
1679917
136227
8.11%
2.
Environmental Affairs and Tourism
1652268
109604
6.63%
2.
Housing
4826781
480263
9.95%
10
Land Affairs
2031882
148862
7.33%
15
Minerals and Energy
1945143
95491
4.91%
8
Trade and Industry
3623291
215665
5.95%
6
Transport
6769171
720636
10.65%
5
Safety and Security
Economic Services and
Infrastructure Development
23 AUGUST 2005
PAGE: 356 of 644
Water Affairs and Forestry
3823112
300239
7.85%
9
Appendix 3: December 2004 Expenditure
%
%
%
Expenditure Expenditur
Expenditu Expenditu Total
as at 31
re for the re for the expenditur December
R'000
Voted Amounts
Total Budget Month
153531637 10796649
month
e to date
7.03% 107332947
2004
December
2003
69.91%
Central Government
Administration
as at 31
71.67%
63.85%
24327550
1756581
7.22% 15275541
62.79%
The Presidency
175852
11360
6.46%
113053
64.29%
66.17
Parliament
576144
49011
8.51%
441104
76.56%
77.23
Foreign Affairs
2546649
237348
9.32%
1209208
47.48%
44.34
Home Affairs
2377615
137920
5.80%
1360708
57.23%
65.47
13137381
842758
6.41%
8358682
63.63%
64.87
5513909
478184
8.67%
3792786
68.79%
69.41
15060896
862674
5.73% 10005388
66.43%
65.97%
203149
11228
5.53%
152100
74.87%
73.05
National Treasury
14021916
800504
5.71%
9406838
67.09%
65.64
Public Enterprises
77377
5929
7.66%
53680
69.37%
75.42
144296
11072
7.67%
77229
53.52%
66.28
73081
6272
8.58%
51291
70.18%
69.31
Provincial and Local Government
Public Works
Financial and Administrative
Services
Government Communications and
Information Services
Public Service and Administration
Public Service Commission
23 AUGUST 2005
PAGE: 357 of 644
S A Management Development
Institute
40887
593
1.45%
18589
45.46%
69.74
500190
27076
5.41%
245661
49.11%
71.51
28803489
1235007
4.29% 22251006
77.25%
1176097
88178
7.50%
631542
53.70%
62.61
11405095
154603
1.36% 10400678
91.19%
94.20
Health
8818400
696731
7.90%
6383833
72.39%
72.59
Labour
1228697
72037
5.86%
792075
64.46%
66.59
Science and Technology
1282412
83725
6.53%
845746
65.95%
59.99
Social Development
4598575
119015
2.59%
3053820
66.41%
70.62
294213
20718
7.04%
143311
48.71%
57.83
57538746
4252758
7.39% 40752369
70.83%
74.40%
8457492
545545
6.45%
5708902
67.50%
72.65
19411819
1134125
5.84% 13970760
71.97%
79.36
42114
3841
9.12%
68.65%
66.43
Statistics South Africa
Social Services
Arts and Culture,
Education
Sport and Recreation South Africa
Justice and Protection Services
Correctional Services
Defence
Independent Complaints Directorate
28911
Justice and Constitutional
Development
Safety and Security
66.53
5054417
445627
24572904
2123620
8.82%
3549236
70.22%
8.64% 17494560
71.19%
Economic Services and
Infrastructure Development
80.0
72.18
67.08%
27800956
2689629
9.67% 19048643
68.52%
Agriculture
1449391
154604
10.67%
851696
58.76%
54.13
Communications
1679917
61074
3.64%
693646
41.29%
32.52
Environmental Affairs and Tourism
1652268
130662
7.91%
1207728
73.10%
71.79
Housing
4826781
498336
10.32%
3838498
79.53%
78.29
Land Affairs
2031882
107977
5.31%
1430803
70.42%
68.84
Minerals and Energy
1945143
543157
27.92%
1423154
73.16%
69.22
23 AUGUST 2005
PAGE: 358 of 644
Trade and Industry
3623291
312507
8.62%
2031666
56.07%
64.49
Transport
6769171
604006
8.92%
5051498
74.63%
74.29
Water Affairs and Forestry
3823112
277306
7.25%
2519956
65.91%
60.37
Appendix 4: Current Expenditure of National Departments as at 31 December 2004
% Current Current
% Current % Curre
Expenditu Expenditu Expenditure Expendit
Current
re in
re as at 31 as at 31
Expenditu December December December
R'000
Voted Amounts
Current Budget re
64604603
2004
5342025
2004
2004
8.27% 44236383
as a 31
Decembe
2003
68.47%
72.
65.
Central Government
Administration
7403325
685372
9.26%
4965032
67.06%
The Presidency
155534
11324
7.28%
99091
63.71%
66.
Parliament
464337
39695
8.55%
357245
76.94%
76.
Foreign Affairs
2046693
217185
10.61%
1052059
51.40%
44.
Home Affairs
1237597
90518
7.31%
840292
67.90%
70.
229051
21592
9.43%
144723
63.18%
63.
3270113
305058
9.33%
2471622
75.58%
77.
2983166
170415
5.71%
1730698
58.02%
65.
125675
-2585
-2.06%
74419
59.22%
Provincial and Local Government
Public Works
Financial and Administrative
Services
Government Communications and
23 AUGUST 2005
PAGE: 359 of 644
Information Services
73.
National Treasury
2080559
124232
5.97%
1233589
59.29%
64.
Public Enterprises
68065
6217
9.13%
52046
76.47%
75.
141949
10647
7.50%
76095
53.61%
60.
71762
6107
8.51%
50639
70.57%
69.
29791
-279
-0.94%
10808
36.28%
70.
465365
26076
5.60%
233103
50.09%
73.
2754557
181715
6.60%
1589203
57.69%
81.
Arts and Culture,
216537
17801
8.22%
160512
74.13%
70.
Education
480923
23530
4.89%
231704
48.18%
95.
Health
721367
41124
5.70%
388461
53.85%
72.
Labour
788837
65658
8.32%
540225
68.48%
69.
Science and Technology
134270
12487
9.30%
96341
71.75%
60.
Social Development
350496
18064
5.15%
146173
41.70%
70.
62127
3051
4.91%
25787
41.51%
67.
46171161
3863924
8.37% 32831994
71.11%
75.
7138530
504174
7.06%
4855887
68.02%
79.
11986173
1061112
8.85%
8852234
73.85%
79.
40689
2964
7.28%
27115
66.64%
68.
4006291
365650
9.13%
2872241
71.69%
68.
22999478
1930024
8.39% 16224517
70.54%
72.
Public Service and Administration
Public Service Commission
S A Management Development
Institute
Statistics South Africa
Social Services
Sport and Recreation South Africa
Justice and Protection Services
Correctional Services
Defence
Independent Complaints Directorate
Justice and Constitutional
Development
Safety and Security
23 AUGUST 2005
PAGE: 360 of 644
Economic Services and
Infrastructure Development
5292394
440599
8.33%
3119456
58.94%
63.
Agriculture
645356
73941
11.46%
342515
53.07%
54.
Communications
270800
20841
7.70%
164044
60.58%
32.
Environmental Affairs and Tourism
377359
24442
6.48%
233865
61.97%
68.
Housing
170931
13512
7.90%
88528
51.79%
54.
Land Affairs
665249
53166
7.99%
403551
60.66%
55.
Minerals and Energy
405658
25711
6.34%
224236
55.28%
67.
Trade and Industry
654539
74762
11.42%
425610
65.02%
72.
Transport
515323
60675
11.77%
314631
61.06%
73.
1587179
93549
5.89%
922476
58.12%
57.
Water Affairs and Forestry
Appendix 5: Transfers of National Departments to as at 31 December 2004
Transfers % Transfers
R'000
Transfer
for the
for the
Transfers % Transfe
Budget
month
month
to date
Voted Amounts
83526916
5036221
Central Government Administration
15311946
The Presidency
Parliament
to date
6.03% 59628284
71.39
972357
6.35%
9472422
61.8
16650
22
0.13%
11999
72.0
78371
6530
8.33%
58781
75.0
Foreign Affairs
299409
7480
2.50%
102796
34.3
Home Affairs
537666
44579
8.29%
477214
88.7
23 AUGUST 2005
Provincial and Local Government
PAGE: 361 of 644
12902923
820320
6.36%
8210970
63.6
1476927
93426
6.33%
610662
41.3
11999524
689261
5.74%
8248829
68.74
73124
12296
16.82%
73071
99.9
National Treasury
11907993
676154
5.68%
8167166
68.5
Public Enterprises
7065
-92
-1.30%
75
1.0
Public Service and Administration
320
18
5.63%
234
73.1
Public Service Commission
137
Public Works
Financial and Administrative Services
Government Communications and Information
Services
S A Management Development Institute
0.00%
0.0
10101
839
8.31%
7644
75.6
784
46
5.87%
638
81.3
25884159
1037856
955863
70376
10913490
Health
Labour
Statistics South Africa
Social Services
4.01% 20562417
79.44
7.36%
470798
49.2
129769
1.19% 10163986
93.1
8058600
653693
8.11%
5982271
74.2
337636
2081
0.62%
221506
65.6
Science and Technology
1147127
71238
6.21%
745307
64.9
Social Development
4241973
100778
2.38%
2903838
68.4
Sport and Recreation South Africa
229470
9921
4.32%
74711
32.5
Justice and Protection Services
8416372
177923
2.11%
6060033
42330
20216
47.76%
147767
349.0
7354033
73013
0.99%
5118526
69.6
89
38
42.70%
186
208.9
Arts and Culture,
Education
Correctional Services
Defence
Independent Complaints Directorate
72.00
23 AUGUST 2005
PAGE: 362 of 644
Justice and Constitutional Development
617261
44291
7.18%
483470
78.3
Safety and Security
402659
40365
10.02%
310084
77.0
21914915
2158824
756959
Communications
Economic Services and Infrastructure
Development
9.85% 15284583
69.75
65571
8.66%
458220
60.5
1402104
40166
2.86%
527520
37.6
Environmental Affairs and Tourism
1200491
100345
8.36%
932178
77.6
Housing
4651928
484309
10.41%
3743290
80.4
Land Affairs
1329980
49828
3.75%
1007274
75.7
Minerals and Energy
1533588
517583
33.75%
1197243
78.0
Trade and Industry
2957815
236486
8.00%
1601229
54.1
Transport
6231395
542942
8.71%
4733098
75.9
Water Affairs and Forestry
1850655
121594
6.57%
1084531
58.6
Agriculture
Appendix 6: Capital expenditure of National Departments as at 31 December 2004
% Capital % Capital
Capital
R'000
Voted Amounts
% Capital
expenditur Expenditure
Expenditure
e at at 31 at 31
Capital
Expenditu for the
Capital Expenditure December December
Budget
re
to date
5400118
month
418403
7.75%
2004
3468281
64.23%
2003
65.8
23 AUGUST 2005
PAGE: 363 of 644
58.8
Central Government
1612279
98852
6.13%
838088
51.98%
3668
14
0.38%
1963
53.52%
56.2
33436
2786
8.33%
25078
75.00%
82.1
Foreign Affairs
200547
12683
6.32%
54353
27.10%
44.9
Home Affairs
602352
2823
0.47%
43203
7.17%
29.6
5407
846
15.65%
2989
55.28%
69.3
766869
79700
10.39%
710502
92.65%
44.8
Administration
The Presidency
Parliament
Provincial and Local
Government
Public Works
68.5
Financial and
78206
2998
3.83%
25861
33.07%
4350
1517
34.87%
4610
105.98%
72.8
National Treasury
33364
118
0.35%
6084
18.24%
68.4
Public Enterprises
2247
-196
-8.72%
1559
69.38%
108.1
2027
407
20.08%
900
44.40%
79.6
1182
165
13.96%
653
55.25%
39.3
Development Institute
995
33
3.32%
137
13.77%
41.7
Statistics South Africa
34041
954
2.80%
11919
35.01%
52.9
Administrative Services
Government
Communications and
Information Services
Public Service and
Administration
Public Service
Commission
S A Management
23 AUGUST 2005
PAGE: 364 of 644
164773
15436
9.37%
99386
60.32%
61.7
3697
1
0.03%
233
6.30%
37.9
Education
10682
1304
12.21%
4989
46.70%
56.2
Health
38433
1914
4.98%
13101
34.09%
74.6
Labour
102224
4298
4.20%
30344
29.68%
34.8
0.00%
4098
403.74%
0.0
2.83%
3809
62.38%
47.2
Social Services
Arts and Culture,
Science and Technology
1015
Social Development
6106
173
Sport and Recreation
South Africa
49.9
2616
7746
296.10%
42812 1636.54%
46.4
Justice and Protection
Services
2951213
210911
7.15%
1860342
63.04%
Correctional Services
1276632
21155
1.66%
705248
55.24%
32.5
0.00%
0.0
Defence
71613
0.00%
Independent Complaints
Directorate
47.6
1336
839
62.80%
1609
120.43%
430865
35686
8.28%
193525
44.92%
44.0
1170767
153231
13.09%
959959
81.99%
63.6
593647
90206
15.20%
644604
108.58%
73.6
47076
15092
32.06%
50961
108.25%
52.2
7013
67
0.96%
2081
29.67%
73.3
Justice and Constitutional
Development
Safety and Security
Economic Services and
Infrastructure
Development
Agriculture
Communications
23 AUGUST 2005
PAGE: 365 of 644
Environmental Affairs
and Tourism
74418
5875
7.89%
41685
56.01%
83.3
3922
515
13.13%
6680
170.32%
79.4
36653
4983
13.60%
19977
54.50%
76.3
5897
-137
-2.32%
1675
28.40%
70.1
Trade and Industry
10937
1259
11.51%
4826
44.13%
1.8
Transport
22453
389
1.73%
3769
16.79%
77.1
Housing
Land Affairs
Minerals and Energy
Water Affairs and
Forestry
67.8
385278
62163
16.13%
512949
133.14%
Appendix 7: Current, Transfer and Capital expenditure of provincial departments in the Eastern Cape
Current Expenditure
Current
Percentage
Expenditur Current
Percentage
Current
Total
Current e for the
Expenditure for Expenditu Expenditure
R'000
Budget
the Quarter
Education
10202020
2802548
27.47%
7458170
73.10%
4224698
1125280
26.64%
3283349
77.72%
Social Development
777130
217455
27.98%
563925
72.57%
Office of the Premier
168659
41369
24.53%
113433
67.26%
Provincial Legislature
88264
21756
24.65%
64172
72.70%
Roads & Public Works
934852
226945
24.28%
701582
75.05%
287040
75722
26.38%
183506
63.93%
Health
Quarter
re to date to date
Housing, Local Government & Traditional
Affairs
23 AUGUST 2005
PAGE: 366 of 644
Agriculture
681278
149183
21.90%
454742
66.75%
Economic Affairs, Environment &Tourism
135183
29897
22.12%
82288
60.87%
Transport
197030
59324
30.11%
158356
80.37%
Provincial Treasury
148684
32403
21.79%
88002
59.19%
Sport, Recreation, Arts & Culture
195457
46480
23.78%
134173
68.65%
10988
3265
29.71%
8561
77.91%
18051283
4831627
26.77% 13294259
73.65%
Safety & Liaison
Total
Transfers
R'000
Percentage
Percentage
Transfers
Transfers
Total
Transfer
for the
for the
Transfers
Transfers to
Budget
Quarter
Quarter
to date
date
Education
291744
84626
29.01%
257938
88.41%
Health
551985
132213
23.95%
365455
66.21%
8888806
1530295
17.22%
6094602
68.56%
Office of the Premier
41555
4448
10.70%
19414
46.72%
Provincial Legislature
5675
1793
31.59%
4264
75.14%
Roads & Public Works
7438
12720
171.01%
44827
602.68%
Affairs
737681
152878
20.72%
567401
76.92%
Agriculture
190916
105493
55.26%
124267
65.09%
Economic Affairs, Environment &Tourism
661170
196224
29.68%
405895
61.39%
55743
17242
30.93%
36627
65.71%
2112
185
8.76%
279
13.21%
Social Development
Housing, Local Government & Traditional
Transport
Provincial Treasury
23 AUGUST 2005
Sport, Recreation, Arts & Culture
PAGE: 367 of 644
30195
1579
Safety & Liaison
Total
5.23%
18375
6
11465020
2239702
60.85%
12
19.54%
7939356
69.25%
Capital Expenditure
Capital
% Capital
Percentage
Expenditure Expenditure Capital
Capital
Capital
for the
for the
Expenditure expenditure
Budget
Quarter
Quarter
to date
to date
R'000
Education
301502
77973
25.86%
230843
76.56%
Health
444583
115855
26.06%
315068
70.87%
Social Development
21924
2015
9.19%
2203
10.05%
Office of the Premier
15753
2573
16.33%
5757
36.55%
Provincial Legislature
1610
127
7.89%
513
31.86%
879503
314108
35.71%
762966
86.75%
14491
5158
35.59%
7238
49.95%
Agriculture
9949
601
6.04%
6663
66.97%
Economic Affairs, Environment &Tourism
3271
675
20.64%
898
27.45%
49813
3450
6.93%
24675
49.54%
4234
741
17.50%
833
19.67%
14231
2270
15.95%
2257
15.86%
334
-3
-0.90%
1761198
525546
29.84%
Roads & Public Works
Housing, Local Government & Traditional
Affairs
Transport
Provincial Treasury
Sport, Recreation, Arts & Culture
Safety & Liaison
Total
0.00%
1359914
Appendix 8: Current, Transfer and Capital expenditure of provincial departments in the Free State
77.22%
23 AUGUST 2005
PAGE: 368 of 644
Current Expenditure
Total
%
Percentage
Expenditure Expenditure Total
R'000
Total
Total
for the
for the
Expenditure Expenditure
Budget
Quarter
Quarter
to date
to date
Education
4118029
1064412
25.85%
2874630
69.81%
Health
2457135
654081
26.62%
1807866
73.58%
356113
119165
33.46%
225400
63.29%
Department of the Premier
74152
15102
20.37%
46207
62.31%
Free State Legislature
50804
12619
24.84%
36840
72.51%
Tourism, Environmental & Economic Affairs
134395
33475
24.91%
96159
71.55%
Free State Provincial Treasury
126053
28284
22.44%
74714
59.27%
Local Government & Housing
141802
29615
20.88%
73361
51.73%
Public Works, Roads & Transport
644043
226894
35.23%
498183
77.35%
Public Safety, Security & Liaison
25850
4594
17.77%
15357
59.41%
182703
44677
24.45%
119272
65.28%
65354
16046
24.55%
43822
67.05%
8385433
2248964
26.82%
5911811
70.50%
Social Development
Agriculture
Sport, Arts, Culture, Science & Technology
Total
Transfers
Total
R'000
%
Total
Percentage
Total
Expenditure Expenditure Expenditure Total
Budget
for the
for the
to date
Transfers to
23 AUGUST 2005
PAGE: 369 of 644
Quarter
Education
Quarter
date
326658
90531
27.71%
214788
65.75%
92936
37948
40.83%
93167
100.25%
3246361
871331
26.84%
2405426
74.10%
10452
2670
25.55%
8372
80.10%
8088
3190
39.44%
5497
67.96%
102777
3325
3.24%
57209
55.66%
Free State Provincial Treasury
441
53
12.02%
197
44.67%
Local Government & Housing
616379
147567
23.94%
370409
60.09%
Public Works, Roads & Transport
3363
1074
31.94%
3714
110.44%
Public Safety, Security & Liaison
547
28
5.12%
87
15.90%
31086
154
0.50%
709
2.28%
5019
915
18.23%
3752
74.76%
4444107
1158786
26.07%
3163327
71.18%
Health
Social Development
Department of the Premier
Free State Legislature
Tourism, Environmental & Economic Affairs
Agriculture
Sport, Arts, Culture, Science & Technology
Total
Capital Expenditure
Capital
R'000
% Capital
Percentage
Expenditure Expenditure Capital
Total
Capital
for the
for the
Expenditure
Expenditure
Budget
Quarter
Quarter
to date
to date
Education
172963
17463
10.10%
72877
42.13%
Health
207196
38122
18.40%
123224
59.47%
21122
4809
22.77%
6278
29.72%
776
148
19.07%
345
44.46%
3072
1039
33.82%
3000
97.66%
Social Development
Department of the Premier
Free State Legislature
23 AUGUST 2005
PAGE: 370 of 644
Tourism, Environmental & Economic Affairs
11878
2273
19.14%
8208
69.10%
Free State Provincial Treasury
7528
1570
20.86%
3440
45.70%
Local Government & Housing
5309
324
6.10%
1370
25.81%
Public Works, Roads & Transport
161577
39280
24.31%
46819
28.98%
Public Safety, Security & Liaison
743
753
101.35%
753
101.35%
Agriculture
43494
1107
2.55%
2323
5.34%
Sport, Arts, Culture, Science & Technology
23889
3457
14.47%
8200
34.33%
659547
110345
16.73%
276837
41.97%
Total
Appendix 9: Current, Transfer and Capital expenditure of provincial
departments in Gauteng
Current Expenditure
%
Current
Current
Expenditu Expendit
re for
R'000
Percentage
ure for
Current
Total
Current the
the
Expenditure
Expenditur
Budget
Quarter
to date
e to date
Quarter
Education
8488775
2455833
28.93%
6604835
77.81%
Health
7700578
1964004
25.50%
5293596
68.74%
561312
149416
26.62%
401283
71.49%
97050
24887
25.64%
63576
65.51%
87300
20609
23.61%
55766
63.88%
Social Development
Office of the Premier
Gauteng Provincial
Legislature
23 AUGUST 2005
PAGE: 371 of 644
Finance & Economic Affairs
139749
73107
52.31%
188267
134.72%
Housing
131237
39442
30.05%
112901
86.03%
96982
24027
24.77%
62176
64.11%
1088746
352010
32.33%
950510
87.30%
151678
29991
19.77%
43153
28.45%
195073
41997
21.53%
110949
56.88%
84689
22049
26.04%
56911
67.20%
4755520
127583
2.68%
302600
6.36%
5324955
27.59%
14246523
73.82%
Local Government
Public Transport, Roads &
Works
Community Safety
Agriculture, Conservation &
Environment
Sport, Recreation, Arts and
Culture
Gauteng Shared Services
Center
1929868
Total
9
Transfers
%
R'000
Transfe Transfers Transfers
Transfe
r
for the
for the
rs to
% Transfers t
Budget
Quarter
Quarter
date
date
Education
732729
241017
32.89%
604654
82.52
Health
747322
206415
27.62%
490942
65.69
5769575
1650302
28.60% 4270951
74.03
113
38
33.63%
91
80.53
1008326
57178
5.67%
409847
40.65
Social Development
Office of the Premier
Gauteng Provincial
Legislature
Finance & Economic Affairs
23 AUGUST 2005
Housing
Local Government
PAGE: 372 of 644
1294066
331084
25.58%
894459
69.12
138950
71166
51.22%
75783
54.54
60
58116
96860.00%
181127
301878.33
1109
128
11.54%
465
41.93
0.00%
92
3.21
30.31%
31385
55.12
27.00% 6959796
71.37
Public Transport, Roads &
Works
Community Safety
Agriculture, Conservation &
Environment
2866
Sport, Recreation, Arts and
Culture
56936
17255
9752052
2632699
Gauteng Shared Services
Center
Total
Capital Expenditure
%
Capital
Capit Capital
al
R'000
Expendit Capital
Expenditur ure for
Expendit % Capital
Budge e for the
the
ure to
Expenditur
t
Quarter
date
e to date
Quarter
80584
Education
5
188459
23.39%
295246
36.64%
0
36524
7.36%
71619
14.44%
11647
1010
8.67%
2791
23.96%
4239
732
17.27%
2838
66.95%
49594
Health
Social Development
Office of the Premier
23 AUGUST 2005
PAGE: 373 of 644
Gauteng Provincial Legislature
11395
1528
13.41%
7808
68.52%
Finance & Economic Affairs
59157
1302
2.20%
3218
5.44%
Housing
14923
683
4.58%
4373
29.30%
1435
178
12.40%
215
14.98%
0
1826
0.26%
6697
0.96%
9882
277
2.80%
5593
56.60%
8640
1011
11.70%
3930
45.49%
627
398
63.48%
1131
180.38%
33661
1790
5.32%
7475
22.21%
235718
10.93%
412934
19.15%
Local Government
69864
Public Transport, Roads & Works
Community Safety
Agriculture, Conservation &
Environment
Sport, Recreation, Arts and
Culture
Gauteng Shared Services Center
21560
Total
31
Appendix 10: Current, Transfer and Capital expenditure of provincial
departments in KwaZulu-Natal
Current expenditure
Current
% Current
Expenditure Expenditure Current
% Cu
Current for the
for the
Expenditure Expe
R'000
Budget
Quarter
to date
Education
11902191
3148903
26.46%
8724396
7940111
2113499
26.62%
5860583
918591
299724
32.63%
746174
Health
Quarter
Social Welfare & Population
Development
to d
23 AUGUST 2005
PAGE: 374 of 644
Office of the Premier
178316
36103
20.25%
93255
Provincial Parliament
89818
20311
22.61%
58957
560421
170783
30.47%
432455
80041
16899
21.11%
43628
Provincial Treasury
675837
31501
4.66%
110925
Housing
213428
52101
24.41%
169921
Community Safety & Liaison
16678
4180
25.06%
9629
The Royal Household
22022
6073
27.58%
16486
Affairs
323935
71904
22.20%
198478
Transport
682726
226762
33.21%
584693
Works
332518
86031
25.87%
227820
Arts, Culture & Tourism
90452
8910
9.85%
15743
Sport & Recreation
36845
5122
13.90%
11182
24063930
6298806
26.18%
17304325
Agriculture & Environmental
Affairs
Economic Development
Traditional & Local Government
Reconstruction & Development
Total
Transfers
%
Transfer
Transfe
R'000
s for
r
Transfers for the
Budget
the Quarter
%
Transfe Transfer
rs to
Quarter date
s to
date
23 AUGUST 2005
PAGE: 375 of 644
Education
456170
139381
30.55%
698047
153.02%
Health
366677
70525
19.23%
256768
70.03%
9976262
2674687
26.81% 7847960
78.67%
18056
1454
8.05%
4317
23.91%
10613
2531
23.85%
7574
71.37%
304371
71839
23.60%
199043
65.39%
63599
29229
45.96%
82955
130.43%
804
301
37.44%
909
113.06%
749460
149168
19.90%
509048
67.92%
275 323.53%
286
336.47%
Social Welfare & Population
Development
Office of the Premier
Provincial Parliament
Agriculture & Environmental
Affairs
Economic Development
Provincial Treasury
Housing
Community Safety & Liaison
The Royal Household
85
137
18
13.14%
73
53.28%
126943
42155
33.21%
60814
47.91%
27340
1693
6.19%
14232
52.06%
6513
1014
15.57%
4259
65.39%
105899
5701
5.38%
8261
7.80%
4610
610
13.23%
660
14.32%
26.11% 9695206
79.35%
Traditional & Local Government
Affairs
Transport
Works
Arts, Culture & Tourism
Sport & Recreation
Reconstruction & Development
1221753
Total
9
3190581
Capital expenditure
Capital Capital
R'000
Budget
%
Expenditu Capital
Capital
% Capital
Expenditu Expenditu
23 AUGUST 2005
PAGE: 376 of 644
re for
Expendit re to
re to
the
ure for
date
Quarter
the
date
Quarter
Education
710353
81163
11.43%
95854
13.49%
Health
569197
165853
29.14%
318366
55.93%
55701
13981
25.10%
23337
41.90%
Office of the Premier
5512
449
8.15%
1037
18.81%
Provincial Parliament
30361
507
1.67%
4338
14.29%
99054
11152
11.26%
17189
17.35%
Economic Development
3257
359
11.02%
1014
31.13%
Provincial Treasury
17380
2952
16.99%
3832
22.05%
Housing
13027
1919
14.73%
5740
44.06%
364
6
1.65%
12
3.30%
3053
763
24.99%
1740
56.99%
36308
1839
5.06%
16690
45.97%
1099581
269201
24.48%
806706
73.36%
62973
5796
9.20%
12885
20.46%
Arts, Culture & Tourism
4257
84
1.97%
91
2.14%
Sport & Recreation
2197
36
1.64%
73
3.32%
2712575
556060
20.50%
1308904
Social Welfare & Population
Development
Agriculture & Environmental
Affairs
Community Safety & Liaison
The Royal Household
Traditional & Local Government
Affairs
Transport
Works
Reconstruction & Development
Total
23 AUGUST 2005
PAGE: 377 of 644
Appendix 11: Current, Transfer and Capital expenditure of provincial
departments in Limpopo
Current
Current
R'000
% Current
%
Expenditu Current
Current
Curren Expenditure
re for
Expendit Expendit
t
the
ure to
ure to
Quarter
date
date
for the
Budget Quarter
900658
Education
6
2415937
26.82%
6562210
72.86
4
956160
25.43%
2669456
70.99
575724
141759
24.62%
299392
52.00
Sport, Arts & Culture
72401
18584
25.67%
50217
69.36
Safety, Security & Liaison
16102
3665
22.76%
11444
71.07
Office of the Premier
199420
45134
22.63%
110353
55.34
Local Government & Housing
358322
73332
20.47%
243083
67.84
84436
18147
21.49%
48091
56.96
Public Works
751716
197792
26.31%
524769
69.81
Finance & Economic Development
490238
140280
28.61%
325964
66.49
Agriculture
606358
156601
25.83%
431602
71.18
Transport
309596
95367
30.80%
233352
75.37
26.26% 11509933
70.91
376009
Health
Welfare
Provincial Legislature
162309
Total
93
4262758
23 AUGUST 2005
PAGE: 378 of 644
Transfers
%
R'000
Education
Health
Transf Transfers % Transfers
Transfer Transfer
er
for the
for the
s to
s to
Budget Quarter
Quarter
date
date
172834
47087
27.24%
122963
71.15%
83489
11774
14.10%
41258
49.42%
25.34% 4438432
73.41%
604604
Welfare
9
1532061
Sport, Arts & Culture
2142
16
0.75%
896
41.83%
Safety, Security & Liaison
2381
510
21.42%
524
22.01%
40354
17830
44.18%
21829
54.09%
418576
86653
20.70%
226084
54.01%
8898
541
6.08%
7054
79.28%
665793
113495
17.05%
455858
68.47%
Development
267927
59351
22.15%
178735
66.71%
Agriculture
45408
10694
23.55%
33231
73.18%
155626
46809
30.08%
113456
72.90%
24.36% 5640320
71.31%
Office of the Premier
Local Government & Housing
Provincial Legislature
Public Works
Finance & Economic
Transport
790947
Total
7
1926821
Capital
R'000
Capital
Capital
% Capital
Capital
%
23 AUGUST 2005
PAGE: 379 of 644
Budget
Expenditure
Expenditure Expenditu Capital
for the
for the
re to
Expendit
Quarter
Quarter
date
ure to
date
Education
510437
74017
14.50%
328056
64.27
Health
396039
79925
20.18%
248293
62.69
Welfare
90282
1633
1.81%
12090
13.39
4245
86
2.03%
1551
36.54
2400
241
10.04%
658
27.42
21370
1175
5.50%
1845
8.63
80822
8492
10.51%
48507
60.02
9833
363
3.69%
2336
23.76
100497
16741
16.66%
45383
45.16
Development
94085
5548
5.90%
56023
59.55
Agriculture
143467
17064
11.89%
49644
34.60
22068
683
3.09%
11822
53.57
1475545
205968
13.96%
806208
54.64
Sport, Arts & Culture
Safety, Security &
Liaison
Office of the Premier
Local Government &
Housing
Provincial Legislature
Public Works
Finance & Economic
Transport
Total
Appendix 12: Current, Transfer and Capital expenditure of provincial
departments in Mpumalanga
Current Expenditure
23 AUGUST 2005
PAGE: 380 of 644
Current
R'000
Current % Curren
Curren Expenditure % Current
Expendi Expendit
t
Expenditure for
ture to re to
the Quarter
date
for the
Budget Quarter
date
482575
Education
9
1233257
25.56% 3360830
69.64
8
553245
26.76% 1469816
71.08
Social Development
266771
89594
33.58%
202735
76.00
Office of the Premier
108057
26490
24.51%
75963
70.30
Finance
176748
51888
29.36%
106803
60.43
Administration
335487
80107
23.88%
206780
61.64
Roads & Transport
454527
139834
30.76%
321446
70.72
Safety & Security
35247
8614
24.44%
24437
69.33
112377
33428
29.75%
91243
81.19
47593
12364
25.98%
34011
71.46
64186
16826
26.21%
47390
73.83
59219
18051
30.48%
40593
68.55
258781
69526
26.87%
171040
66.09
26.48% 6153087
69.82
206779
Health
Agriculture & Land
Local Government &
Housing
Provincial Legislature
Culture, Sport &
Recreation
Economic Development &
Planning
Public Works
881255
Total Payments
0
2333224
23 AUGUST 2005
PAGE: 381 of 644
Transfers
% Transfers
R'000
Education
Transfer Transfers for
for the
Transfers % Transfers
Budget
Quarter
to date
the Quarter
to date
156205
39693
25.41%
135953
87.03%
73596
20803
28.27%
51775
70.35%
3095130
939636
30.36%
2377592
76.82%
Premier
1174
30
2.56%
118
10.05%
Finance
69
18
26.09%
57
82.61%
141027
37278
26.43%
111291
78.91%
982
629
64.05%
1453
147.96%
66
200
303.03%
530
803.03%
377866
149456
39.55%
340369
90.08%
2700
967
35.81%
2759
102.19%
1980
-88
-4.44%
2499
126.21%
115833
49452
42.69%
95020
82.03%
Health
Social
Development
Office of the
Agriculture &
Land
Administration
Roads &
Transport
Safety &
Security
Local Government
& Housing
Provincial
Legislature
Culture, Sport &
Recreation
Economic
23 AUGUST 2005
PAGE: 382 of 644
Development &
Planning
Public Works
Total Payments
478
511
106.90%
972
203.35%
3967106
1238585
31.22%
3120388
78.66%
Capital
Capital
% Capital
Capital
Capita Expenditur Expenditure Expenditu % Capital
l
R'000
e for the
Budget Quarter
for the
re to
Expenditure
Quarter
date
to date
Education
224983
27999
12.44%
98473
43.77%
Health
252491
13820
5.47%
38629
15.30%
Social Development
7027
456
6.49%
564
8.03%
Office of the Premier
2549
507
19.89%
1238
48.57%
15345
1244
8.11%
6573
42.83%
24221
4822
19.91%
5632
23.25%
Roads & Transport
379365
71437
18.83%
182838
48.20%
Safety & Security
955
112
11.73%
112
11.73%
61151
-12166
-19.90%
2447
4.00%
1691
65
3.84%
431
25.49%
6660
65
0.98%
560
8.41%
Finance
Agriculture & Land
Administration
Local Government &
Housing
Provincial Legislature
Culture, Sport &
Recreation
Economic Development &
Planning
184
0.00%
23 AUGUST 2005
Public Works
PAGE: 383 of 644
31410
10187
32.43%
18336
58.38%
118548
11.76%
355751
35.29%
100803
Total Payments
2
Appendix 13: Current, Transfer and Capital expenditure of provincial
departments in North West
Current expenditure
Current
% Current
Expenditure Expenditure Current
% Current
Current for the
for the
Expenditure Expenditu
R'000
Budget Quarter
Quarter
to date
Education
5078658
1358188
26.74%
3660375
72.0
Health
2328748
595761
25.58%
1675195
71.9
Social Development
379484
80557
21.23%
237917
62.6
Office of the Premier
142436
31851
22.36%
93727
65.8
Provincial Legislature
60225
9559
15.87%
33701
55.9
Safety & Liaison
20087
5143
25.60%
13802
68.7
239460
51542
21.52%
150951
63.0
92661
20711
22.35%
58652
63.3
Transport & Roads
621428
169493
27.27%
405856
65.3
Public Works
330791
82505
24.94%
216214
65.3
Environment & Tourism
327596
82314
25.13%
232745
71.0
Sport, Arts & Culture
103338
19307
18.68%
55344
53.5
Finance & Economic Development
Local government & Housing
to date
Agriculture, Conservation,
23 AUGUST 2005
Contingency Reserve
Total
PAGE: 384 of 644
13100
9738012
0.00%
2506931
25.74%
0.0
6834479
Transfers
%
R'000
Education
Health
%
Transf Transfers
Transfers Transfe Transf
er
for the
for the
rs to
ers to
Budget Quarter
Quarter
date
date
141236
23880
16.91%
100393 71.08%
69276
18825
27.17%
43353 62.58%
391142
Social Development
0
912277
7994
1197
14.97%
4287 53.63%
62
17
27.42%
54 87.10%
479
409
85.39%
471 98.33%
58313
5472
9.38%
18068 30.98%
Local government & Housing
573814
106789
18.61%
225148 39.24%
Transport & Roads
281526
84553
30.03%
247027 87.75%
3193
480
15.03%
2127 66.61%
Environment & Tourism
173684
38509
22.17%
102402 58.96%
Sport, Arts & Culture
61682
18370
29.78%
40513 65.68%
Office of the Premier
Provincial Legislature
Safety & Liaison
Finance & Economic Development
Public Works
23.32% 2958942 75.65%
Agriculture, Conservation,
Contingency Reserve
528267
Total
9
1210778
22.92% 3742785 70.85%
70.1
23 AUGUST 2005
PAGE: 385 of 644
Capital
Capital
R'000
% Capital
%
Expenditu Capital
Capital
Capita Expenditur re for
Expendit Expendit
l
the
ure to
ure to
Quarter
date
date
e for the
Budget Quarter
Education
204714
83776
40.92%
135640
66.26%
Health
266346
40414
15.17%
111878
42.00%
22554
1778
7.88%
4366
19.36%
Office of the Premier
2840
86
3.03%
343
12.08%
Provincial Legislature
17176
4345
25.30%
13349
77.72%
113
24
21.24%
40
0.00%
Finance & Economic Development
14104
2478
17.57%
4262
30.22%
Local government & Housing
22300
2071
9.29%
7024
31.50%
242093
54323
22.44%
103568
42.78%
33955
6279
18.49%
10569
31.13%
Environment & Tourism
11453
860
7.51%
3370
29.42%
Sport, Arts & Culture
5363
215
4.01%
6727
125.43%
Social Development
Safety & Liaison
Transport & Roads
Public Works
Agriculture, Conservation,
Contingency Reserve
Total
17527
860538
0.00%
196649
22.85%
0.00%
401136
46.61%
23 AUGUST 2005
PAGE: 386 of 644
Appendix 14: Current, Transfer and Capital expenditure of provincial
departments in Northern Cape
Current Expenditure
Current
% Current
Expenditu Expenditu Current
R'000
% Current
Curren re for
re for
Expendit Expenditu
t
the
ure to
re to
Quarter
date
date
the
Budget Quarter
127451
Education
5
365466
28.67%
979349
76.84%
731547
187060
25.57%
555097
75.88%
174057
39688
22.80%
116471
66.92%
Office of the Premier
60530
11835
19.55%
44810
74.03%
Legislature
42996
9854
22.92%
28852
67.10%
Provincial Safety & Liaison
11593
2643
22.80%
7568
65.28%
177337
36782
20.74%
108717
61.31%
Economic Affairs & Tourism
30140
5575
18.50%
15097
50.09%
Sport, Arts & Culture
37267
9159
24.58%
29968
80.41%
Finance
67102
12330
18.38%
34435
51.32%
Housing & Local Government
78843
15153
19.22%
47049
59.67%
125840
25279
20.09%
70744
56.22%
720824
25.64%
2038157
72.49%
Health
Social Services & Population
Development
Transport, Roads & Public Works
Agriculture, Land Reform,
Environment & Conservation
281176
Total
7
23 AUGUST 2005
PAGE: 387 of 644
Transfers
Transfe %
R'000
Education
%
Transf rs for
Transfers
er
for the
the
Budget Quarter Quarter
Transfe
Transfers rs to
to date
date
108642
20793
19.14%
93437
86.00%
18000
3017
16.76%
10265
57.03%
1
255032
22.57%
814022
72.04%
Office of the Premier
6598
24
0.36%
67
1.02%
Legislature
3030
25
0.83%
2954
97.49%
Health
Social Services & Population
Development
113001
Provincial Safety & Liaison
6
18
Transport, Roads & Public Works
88606
15242
17.20%
39652
44.75%
Economic Affairs & Tourism
17479
4071
23.29%
7503
42.93%
6047
781
12.92%
2786
46.07%
95
19
20.00%
62
65.26%
170118
33491
19.69%
150524
88.48%
314
140
44.59%
332641
21.48%
Sport, Arts & Culture
Finance
Housing & Local Government
Agriculture, Land Reform, Environment
& Conservation
320 101.91%
154894
Total
Capital
0
1121610
72.41%
23 AUGUST 2005
PAGE: 388 of 644
Capital
% Capital
Capital
% Capital
Capita Expenditure Expenditure Expenditu Expenditu
l
R'000
Education
for the
for the
re to
re to
Budget Quarter
Quarter
date
date
14975
3382
22.58%
10815
72.22%
125292
26048
20.79%
36659
29.26%
13807
1682
12.18%
4592
33.26%
Office of the Premier
653
747
114.40%
1157
177.18%
Legislature
200
206
103.00%
-146
-73.00%
Provincial Safety & Liaison
550
24
4.36%
403
73.27%
108032
45050
41.70%
86551
80.12%
430
252
58.60%
270
62.79%
Sport, Arts & Culture
9700
13
0.13%
5961
61.45%
Finance
1091
16
1.47%
624
57.20%
Housing & Local Government
2531
592
23.39%
1018
40.22%
3800
94
2.47%
1433
37.71%
282061
78106
27.69%
149337
52.94%
Health
Social Services & Population
Development
Transport, Roads & Public
Works
Economic Affairs & Tourism
Agriculture, Land Reform,
Environment & Conservation
Total
Appendix 15: Current, Transfer and Capital Expenditure in the Western Cape
Province
Current Expenditure
Current Current
R'000
Budget
% Current Current
% Current
Expenditu Expenditu Expenditu Expenditu
23 AUGUST 2005
PAGE: 389 of 644
re for
re for
re to
re to
the
the
date
date
Quarter
Quarter
Education
5065554
1382665
27.30%
3704078
73.12%
Health
4314542
1126520
26.11%
3099669
71.84%
Alleviation
422694
99992
23.66%
269254
63.70%
Provincial Administration
251969
60372
23.96%
169301
67.19%
37038
9467
25.56%
26157
70.62%
Provincial Treasury
102744
22184
21.59%
66113
64.35%
Community Safety
127069
33680
26.51%
86436
68.02%
81135
14358
17.70%
39994
49.29%
63526
14306
22.52%
38154
60.06%
Transport & Public Works
951556
210321
22.10%
587760
61.77%
Agriculture
142554
40783
28.61%
105760
74.19%
Local Government
53661
9461
17.63%
24502
45.66%
Economic Development & Tourism
49051
12580
25.65%
28411
57.92%
122864
30678
24.97%
83213
67.73%
3067367
26.03%
8328802
70.67%
Social Services & Poverty
Provincial Parliament
Housing
Environmental Affairs &
Development Planning
Cultural Affairs & Sport
1178595
Total
7
Transfers
Transf Transfers % Transfers Transf %
er
R'000
for the
for the
ers to Transfer
Budget Quarter
Quarter
date
s to
23 AUGUST 2005
PAGE: 390 of 644
date
Education
420791
154565
36.73% 328730
78.12%
Health
458641
111716
24.36% 328408
71.60%
Social Services & Poverty
388462
Alleviation
282990
3
991717
25.53%
9
72.85%
Provincial Administration
4880
1936
39.67%
4006
82.09%
Provincial Parliament
8495
1507
17.74%
7657
90.14%
320
22
6.88%
138
43.13%
31513
14351
45.54%
28802
91.40%
629821
159919
25.39% 330802
52.52%
Development Planning
72515
16989
23.43%
56134
77.41%
Transport & Public Works
73828
13515
18.31%
30263
40.99%
Agriculture
40959
17279
42.19%
24656
60.20%
Local Government
29003
3191
11.00%
11341
39.10%
Economic Development & Tourism
77080
54121
70.21%
68347
88.67%
Cultural Affairs & Sport
31285
5302
16.95%
18391
58.79%
Provincial Treasury
Community Safety
Housing
Environmental Affairs &
576375
Total
4
406758
1546130
26.83%
4
70.57%
Capital
Capit Capital
al
R'000
% Capital
Capital
%
Expenditu Expenditure Expenditu Capital
Budge re for
for the
re to
Expendit
t
Quarter
date
ure to
the
23 AUGUST 2005
PAGE: 391 of 644
Quarter
Education
30039
date
4476
14.90%
7743
25.78%
0
18571
17.66%
35110
33.39%
Alleviation
19187
7402
38.58%
11031
57.49%
Provincial Administration
40392
1948
4.82%
3777
9.35%
0.00%
296
22.29%
10516
Health
Social Services & Poverty
Provincial Parliament
1328
Provincial Treasury
5916
1164
19.68%
1818
30.73%
Community Safety
3045
399
13.10%
984
32.32%
Housing
1925
320
16.62%
1133
58.86%
1376
19
1.38%
465
33.79%
2
175316
20.46%
448659
52.36%
47131
2331
4.95%
5106
10.83%
6358
407
6.40%
842
13.24%
405
270
66.67%
465
114.81%
2090
63
3.01%
1109
53.06%
212686
18.97%
518538
46.25%
Environmental Affairs &
Development Planning
85693
Transport & Public Works
Agriculture
Local Government
Economic Development & Tourism
Cultural Affairs & Sport
11212
Total
National Assembly
84
23 AUGUST 2005
1.
PAGE: 392 of 644
Report of the Standing Committee on Public Accounts on Study Tour to the
Canadian Office of the Auditor-General and the Standing Committee on
Public Accounts, dated 8 June 2005:
INDEX
1. Introduction
a. Objectives of the Committee Study Tour
b. Composition of Delegation
c. Background
d.
Significance to the aims and objectives of the Committee
e.
How does the study tour fit in with the oversight role of the Committee?
2. Overview of the Office of the Auditor-General (OAG)
a. The Role and Mandate of the Office of the Auditor-General and Overview of the
Machinery of the Canadian Government
b. Relations with Parliament
c. Forensic Auditing
23 AUGUST 2005
PAGE: 393 of 644
d. Accrual Accounting and provincial progress
3. Financial management and the need for a capability model
4. Treasury Board Secretariat
a.
Governance of Crown Corporations
b. Comptrollership and Oversight (Financial Management and Control)
c. Accrual Accounting in the Federal Government
5. Canadian House of Commons Standing Committee on Public Accounts
6. Conclusion
7. Acknowledgements
8. Bibliography and list of publications obtained
Introduction
a. Objectives of the Committee Study Tour:
23 AUGUST 2005
PAGE: 394 of 644
To study the role, mandate, and organizational structure of the Office of the Auditor-General of
Canada. To study its forensic audit practices and the OAG’s relations with Parliament and the
Executive arm of government. Performance audits or value for money audits as a focus area were also
studied.
The Delegation also reviewed the operational aspects of the Canadian House of Commons Standing
Committee on Public Accounts and the Treasury Board.
The financial management, anti corruption and fraud units, accountability of government departments
and crown corporations and accrual accounting was very informative.
b. Composition of Delegation

Mr F Beukman, MP, Chairperson: Standing Committee on Public Accounts

Mr Ronald Mofokeng, MP, Whip: Standing Committee on Public Accounts

Ms L Mabe, MP, Group Convener: Standing Committee on Public Accounts

Mr E Trent, MP, Member: Standing Committee on Public Accounts

Mr G Dixon, Secretariat: Standing Committee on Public Accounts

Mr C Botes, Senior Manager: Office of the Auditor-General
The South African Office of the Auditor-General paid for Mr Botes’ travel and accommodation.
c. Background:
23 AUGUST 2005
PAGE: 395 of 644
The Office of International Relations of the Auditor-General of Canada organized and presented the
programme in Canada.
The Office of the Auditor-General of Canada and Treasury Board are international benchmark
institutions with regard to the implementation of new innovation and accounting practice. The South
African Treasury is also utilizing some of the comparative tools with regard to financial planning and
operating models.
The Auditor General also implemented a capability model based on the Canadian model. (Ref AG
Report)
With the implementation of accrual accounting and a financial management capability model (FMCM)
in the South African macro-environment it has become imperative from a oversight perspective that
the main financial oversight committee SCOPA becomes conversant with the two- mentioned
methodologies.
The study visit to Canada focused mainly on two areas:
a. The migration to Accrual Accounting and the
b. Financial Management Capability Model (FMCM).
d. Significance to the aims and objectives of the Committee:
Generally Recognised Accounting Practice (GRAP) will ultimately require financial statements to be
prepared on the accrual basis of accounting. Canada adopted a modified cash and modified accrual
basis to ease in the migration to full accrual accounting. South Africa should adopt a modified cash
23 AUGUST 2005
PAGE: 396 of 644
basis as a transitional measure. Initially, the financial statements usually consist of a set of financial
statements plus supplementary disclosures where accruals and provisions have not been accounted for
in the financial statements.
It has been four years since South Africa has embarked on its project to migrate to accrual accounting.
It is envisaged that it will take many years before all departments and public entities will apply full
accrual accounting in the preparation of their financial statements.
e. A new oversight model for the Committee:
The Canadian model will be beneficial to improve oversight and accountability and and put it into the
right perspective.
The Financial Management Capability Model (maturity levels) is based on the Canadian model as well
as National Treasury’s Normative Measures. Departments and public entities (are evaluated on
maturity levels from 1 to 6) will in future be evaluated in terms of the model.
It would also be of value to observe the methodology and to study the practical implementation of the
capability model and the lessons from an accountability perspective.
2. Overview of the Office of the Auditor-General (OAG)
Mr Ronald Thompson Assistant Auditor-General, a Chartered Accountant in the Office of the AuditorGeneral of Canada and Ms Antonine Campbell Principle, International Relations of the Office of the
Auditor-General met the Delegation.
23 AUGUST 2005
PAGE: 397 of 644
The OAG relationships
The Auditor-General audits the federal government and reports to Parliament being comprised of the
House of Commons and the Senate. Its role is to audit all areas of the federal government and to
provide appropriate audit information on its financial statements and performance for use by the House
of Commons in its scrutiny of government programmes. Its main goal is to provide relevant
information to hold government to account.
The position of AG is posted in the Canada Gazette and major Canadian newspapers. An Advisory
Committee composed of senior government members and members from outside organizations make
recommendations to the President of the Treasury Board. The President in tern makes
recommendations to the Prime Minister. The final appointment is made by Order in Council on the
recommendation of the Prime Minister.
The Auditor-General’s mandate stems from a number of legislative Acts. Primary amongst these is the
Auditor-General Act of 1977 that details the duties of the AG and Commissioner. The Act applies to
Federal Departments and Agencies.
The Financial Administration Act details its mandate with regard to the Public Accounts of Canada
and Crown Corporations. Crown Corporations like the Post Office are entities that make a profit and
are obliged to supply financial statements for scrutiny by the Auditor-General.
Various Territorial acts and Entity specific Acts give the Auditor-General powers of access to public
account information. These Acts may name the AG as auditor or private companies as auditor.
23 AUGUST 2005
PAGE: 398 of 644
Safeguards for the independence of the Office of the Auditor-General:
The AG has the same safeguards as Judges. The salary of the AG is equivalent to that of a Queen’s
Judge. There is no link between the AG and the Executive.

The AG is appointed for ten years and the removal of the AG is subject to approval by both the
Senate and House of Commons.

The AG has the ability to choose what, when and how to audit

The AG has the right to ask the government for any information required to do the job however
access to information does not always amount to disclosure of information

The AG has freedom to recruit her own staff

The AG submits reports directly to the House of Commons through the Speaker

Limited access to working papers

The OAG’s funding
OAG budget and Staff
The OAG budget is determined through the Blue Ribbon Panel consisting of:

3 experts (e.g. former AG or professional accountants: Senior partners)

1 appointment by the Speaker

1 appointment by the Senate

1 Treasury Board official
23 AUGUST 2005
PAGE: 399 of 644
The panel recommends the appropriate funding level to Treasury. The Treasury Board considers
approval of it.
The budget for the Office of the Auditor-General is roughly $75 Million:

Four offices in Ottawa, Edmonton, Vancouver and Halifax

It has approximately 600 employees

$65 million paid for professional salaries

The Staff of the OAG is highly qualified and multidisciplinary. It has accountants, engineers,
lawyers, management specialists, economists, historians and sociologists on staff.

Professional staff has post-graduate or bachelors degrees and professional designations. Many
have additional credentials.

Staff is appointed by the AG but the Public Service Commission checks the appointments
The breakdown of the OAG’s expenditure is as follows:
Regularity audits
$27 million
Value for Money audits
$40 million
Special examinations
$05 million
Total
$72 million
The Work of the Office
The OAG has six product lines:
23 AUGUST 2005
PAGE: 400 of 644

Attest audit of financial statements – Government of Canada (Public Accounts)

Attest audits of financial statements – Crown Corporations

Performance Audits of departments and agencies.

Special examinations – Crowns

Environment and sustainable development monitoring activities

Assessment of performance reports
Performance Audits or Value for Money audits
The methodology for performance or value for money audits is available from around the world but in
order to produce the value for money audits the OAG had to extensively retrain its staff and contract in
additional staff knowledgeable in specific areas. The value for money audits require more than
accountants and many of the OAG staff have additional credentials in specialized fields such as
engineering, sociology, actuary, etc.
The AG does a “one-pass planning” exercise on entities to determine which entities to select for value
for money audits. The planning consists of identifying high-risk areas within an entity. The areas are
discussed and agreed on with the entity. The AG will then audit the department for the next five years
according to the risk audit done. Audit observations pick up issues such as controls that should be in
place but are not. From these it is easy to pick up other issues during the audit.
The importance of the value for money audits to the Canadian Parliament is evident in that the Public
Accounts Committee focuses approximately 90% of its time on this area interest. This has resulted in a
number of changes made to the level of transparency of departments and Crown corporations.
23 AUGUST 2005
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Previously the value for money audits in Crown Corporations resulted in the audit opinion tabled to the
Board of Directors and only under exceptional circumstances did the public gain insight into this
information. This has since been changed and is now done every five years for Crown Corporations
with the report tabled to the House of Commons and made public on the Crown Corporation’s website.
Crown Corporations are obligated to do the five-year audit whereas Departments and Agencies have a
choice.
What are the objectives of performance reporting?
The Food Inspection Agency examined by the Office of the Auditor General did not receive any clean
reports for a number of years. The Food Inspection Agency (FIA) looked after a number of portfolios
such as the prevention of diseases, preservation of forests, and certification of flowers for export. The
FIA is instrumental in encouraging exports and creates approximately 2 million jobs.
The Department of Agriculture funds the FIA and the FIA reports directly to the Ministry. Specific
legislation exists for each department that the FIA has in its portfolio.
But what is performance and how to audit it? The OAG can inspect 45 000 cows but to what
objective? In the AG’s press release statement on 23 November 2004 she highlighted that the
“[e]stimates process is fundamental to an effective accountability relationship between Parliament and
the government. It provides parliamentarians with the opportunity to review and challenge the
government’s spending plans and to hold it to account for its performance against its plans”16
23 AUGUST 2005
PAGE: 402 of 644
A department needs to have objectives and guidelines to make estimates. The Treasury Board provides
objectives for estimates of Departments. The FIA had a qualified report because it did not have defined
objectives or set goals and subjects for performance reports.
Within the FIA the fisheries, agriculture and health was severely uncoordinated and fell over each
other trying to achieve the same purpose. The Treasury Board, in setting the estimates, coordinates
inter-departmental relations and effective management. The Office of the Auditor-General avoids
expressing views on policy issues but can express an opinion on the performance of the solution. The
review would then highlight management problems, lack of cooperation and an uncoordinated
strategy.
Selecting Areas to Audit
The OAG is not sufficiently resourced to do Audits on every Department; it has to carefully select
Departments for auditing through determining:

Materiality

Risk

Last Audit

Size and Complexity of Department

Requests

Key Priorities of Office and Mandate

Auditability
Frequency of Reporting
23 AUGUST 2005
PAGE: 403 of 644
The OAG issues four reports a year. These reports contain approximately 10 Chapters.
The Auditor-General issues one Chapter on follow-ups. It follows up on departments every two years
and reviews whether the implementation of recommendations was made. Three Chapters on the
Commonwealth of the Environment and one Chapter on the Office of the Auditor-General are also
tabled.
The Auditor-General Reports in:

February

April

November/December

The Commissioners Report is tabled in September
The OAG reports to the House of Commons and there is an automatic referral to SCOPA but this does
not preclude the portfolio committees from having a hearing on it. The exception is the Commissions
on Environment package sent to the Committee on Environment.
Key Information Sources

Part III – reports on Plans and Priorities

Performance Report

Audit Manuals
Value for Money (VFM)
Attest Audit
Special Examinations
23 AUGUST 2005
PAGE: 404 of 644
Public involvement and the use of the media
The tabling of the November 2004 report was presented in a media lock-up question and answer
session that highlighted the salient findings of the AG. It was met with much media hype.
The OAG courts the public through extensive use of the media to promote its reports. Its strategy is to
create an expectation around its findings that not only focus the public’s attention on what is
happening in government but focuses Parliament’s attention on the significance of what the OAG is
reporting on and on what the public finds interesting.
Barring any other newsworthy events of the day, the hype created brings special attention to what the
OAG is trying to achieve in her term of office. The media is effectively used to create significant
public attention on issues contained in the reports. The development of its media success has been
developed and improved on through the years. The OAG tracks its success through a well-developed
Key Word Search that indicates their success in reaching their target audience consisting of
parliamentarians, media and the public.
The November 2004 report
The OAG commented that three things are required to improve good governance:
1. An AG that is prepared to report the things that need reporting
2. A SCOPA that is prepared to give those things attention
3. A Department that is prepared to fix the problems
23 AUGUST 2005
PAGE: 405 of 644
The November 2004 report brought these three issues to Parliament’s attention:

“The need to clarify the accountabilities of ministers and senior public servants,

The need for greater public scrutiny of government spending and,

The need for parliamentarians to follow the governments ambitious efforts to transform and
strengthen public sector management.”17
Ministers are directly accountable to Parliament but Deputy Ministers and public servants account to
the Minister and not to Parliament. The AG avers that greater accountability is required and that the
system that was based on the Westminster style of government is not applicable to the changed
environment of today.
Senior public servants attend committee hearings and they are asked to defend policy decisions taken
by their Ministers. Ministers do not always attend committee hearings and she calls for greater
clarification of the roles and responsibilities of senior public servants. She recommends that
committees develop formal guidance that would set parameters for the questions that may be asked of
senior public servants. She reports that the government has noted that this area needs defining and has
undertaken a review to determine whether the doctrine of ministerial accountability is fully understood
and whether it needs to be adjusted.

The internal audit function was assessed by the AG and out of the six federal organizations:

Two organizations met the International Standards for the Professional Practice of Internal
Auditing.
23 AUGUST 2005

PAGE: 406 of 644
Three departments partially met the standards and one agency did not meet many of the
standards
The AG recommended that the Office of the Comptroller-General, re-established on 1 June 2004, note
the importance of informing senior management of understanding the importance that the internal
audit plays. The AG reports that although the government has allocated more money for the
strengthening of the internal audit, many of the same problems of a decade ago are reappearing. Senior
management is still not assigning a high priority to this function within their departments.
The AG’s focus areas
The AG personalizes her term of office by focusing on specific objectives. The present AG has seven
areas of concern for her term of office:

Accountability to Parliament

An effective Public Service

Aboriginal Issues

Well being of Canadians

Security

Health, safety, environment

Legacy and Heritage
The AG reported on Indian and Northern Affairs Canada – Education Program and Post–Secondary
Student Support in chapter 5 of her November 2004 report. She reported that although the Education
Department made a commitment as early as 2000 to close the education gap between First Nations
23 AUGUST 2005
PAGE: 407 of 644
education achievements and the rest of Canada she states that, “the Department has still not clarified
its role and responsibilities in improving the educational achievements of First Nations.”18
She then contextualized the problem by estimating that it could take as much as 28 years to close the
gap if things remain unchanged. This raised a number of questions during Question time in the House
of Commons and during the SCOPA interaction with the AG; this issue was highlighted as major
concern that needed addressing.
Forensic Auditing
The OAG established the Forensic Auditing team in 1990 and currently it has five forensic
accountants. It provides a service to the auditing teams by handling the criminal investigations. Its
findings do not appear as a chapter but is included as audit observations in the AG reports and
management letters.
The authority and mandate to perform forensic audits stem from:

Section 5 of the Auditor-General Act of 1977 that gives the AG authority to do examinations
and inquiries

Section 7 (2) (c) of the Auditor-General Act of 1977 also authorizes the AG to investigate
where money is spent other than appropriated

Section 10 of the Auditor-General Act of 1977 investigating “improperly retained money”

The Canadian Institute of Chartered Accountants (CICA) handbook

Treasury Board Policy and Procedures

Sections 76 and 82 of the Financial Administration Act
23 AUGUST 2005

PAGE: 408 of 644
Sections 121, 122 and 126 of the Canadian Criminal Code
The OAG also receives disclosures from the public, general business, corporations, public servants and
parliamentarians. The OAG decides which complaints to handle or refer to relevant authorities such as
the audit committee or Accounting Officer. The OAG weighs credible investigations very carefully
before accepting the assignment.
The Provincial and Territorial auditors are not equipped to do forensic auditing whereas the OAG
forensic auditors receive training in wrongdoing and fraud methodology. The OAG has developed
indicators of fraud, guidelines and checklists to assist its work. The OAG maintains risk assessment
databases of Departments that assists in the assessment.
Not many issues are referred to the Police for investigation, only when the issues are overwhelming
and the evidence is compelling enough is it referred.
Constraints to Forensic Auditing

Cannot audit non-governmental agencies

3rd parties and non –governmental entities not required to provide assistance or answer
questions to the Office of the Auditor-General

No search and seizure powers

Cannot follow the money at recipients
The OAG does not encourage the public to disclose information but still receive approximately 50
disclosures annually.
23 AUGUST 2005
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Accrual Accounting and the Financial Statements
The cash basis of accounting is the present method of accounting used by the South African
government and various other countries but it is not the most effective method available for recording
transactions and associated liabilities. Most governments around the world are now moving towards
the accrual basis of accounting and The Canadian Institute of Chartered Accountants (CICA) and other
international standard setting bodies recommend it.
What makes accrual accounting a more desirable system is its ability to record assets and liabilities
incurred in previous periods. The accrual basis of accounting records all transactions when they occur
and not when they are paid for as in the cash basis of accounting.
An example:
Your computer installation business finishes a job on 30 November 2004, and is not paid until
10 January 2005. Under the cash method, you would record the payment in January 2005.
Under the accrual method, you would record the income in your books in November of 2004.19
The advantages are that it is a much more comprehensive system of recording financial information.
More liabilities and assets are recorded, resources are recorded; and the consumption of resources
reveals the true state of equity available in government.
A further advantage is that Parliament is better able to hold government accountable for:

Stewardship of its assets

Full costs of its programmes
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
Ability to meet short term and long tem financial obligations

The impact of economic events and decisions during the year

It is better able to link results achieved with all resources used to achieve them.
The government itself is able to take better-informed decisions with more comprehensive information
available.
The previous Canadian accounting structure was a modified accrual accounting that recognized
transactions with a mix of accrual and cash accounting with an expenditure basis. It evolved with
changes in the accounting standards.
The Key changes to the Financial Statements include:
Recognition of:

Non-financial assets (Tangible assets, Inventory, Prepaids)

Tax revenues

Liabilities (Employee and Veterans Future Benefits, Environmental Liabilities, Aboriginal
claims)

Retroactive changes with restatement of prior year financial statements as required by
accounting standards
Only half of the provinces have moved to full accrual accounting. Including federal and tangible
capital assets and revenue in the accrual statements is some of the challenges facing provinces.
Evaluating bridges, buildings, fences and roads is also a challenge to include in accrual accounting.
The Chief State Appraiser needed to take the book value of property based on the materials used in the
23 AUGUST 2005
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year it was made. Then he needed to apply economic deflation based on the assessment of the lifespan
of the property coupled to any improvements done to the building. The value of the property remains
an estimate and a challenge to audit.
Provinces that have moved to full accrual accounting:

British Columbia

Alberta

Manitoba

NW Territories

Saskatchewan

Quebec

New Brunswick

New Finland

Yukon
Office of the Auditor-General of Canada and its relations with
Parliament
Relations with Parliament

Role of Parliamentary relations Group

Relations with Parliamentarians and with Standing Committees

Relations with Public Accounts Committee in particular
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Parliamentary Liaison Group (PLG)
The PLG develops and coordinates the OAG’s parliamentary strategy. They monitor Parliamentary
activities and provide advice and information to senior management on changes in legislation and
questions arising in the House relating to findings from the OAG.
They co-ordinate and facilitate the OAG’s participation in PAC and other parliamentary meetings. The
tabling of reports of the AG and Commissioner of the Environment and Sustainable Development is
organized by the PLG. They respond to MP’s and Senators’ requests for information and facilitate
contacts with Parliament and PAC. They also prepare information for the Office’s performance report.
Their Management Report or "Results doc" keeps track of how effectively they assisted Parliament. It
includes:

Whether Parliament is using issues and recommendations from Office of the Auditor-General
to influence change

Measure extent to which PACS endorsed AG recommendations

Did Parliament parallel, endorse, explicitly endorse or go beyond recommendations?
Relations with Parliamentarians and with Standing Committees
Structure of reports
The OAG goes to great lengths to present the main issues in their reports in as user-friendly a manner
as possible. Summaries of the salient findings in reports are produced using plain language and visuals
for ease of reading.
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Four Annual Reports are tabled the House of Commons in the year and consist of a volume containing
a number of chapters. The November 2003 report contains 10 chapters with each chapter reporting on
separate issues such as Accountability and Ethics in Government, the Sponsorship Programme,
Protection of the Cultural Heritage in the Federal Government and Indian and Northern Affairs
Canada – Transferring Federal Responsibilities to the North to name a few examples.
Annual Reports are automatically referred to SCOPA and in addition, the OAG writes letters
addressed to Chairpersons of other portfolios highlighting specific issues in their area of interest. The
Commissioner of Environment report is tabled to the Committee on Environment but the
Commissioner writes an independent report to PAC.
Reaching out to Parliament
The Auditor-General will approach caucuses of parties. It will sensitize members to their roles and
mandates. This is important because there is a high turnover of MPs. The OAG arranges informal
meetings with MPs and briefs them on issues in their portfolios.
Parliamentary Committees do invite the AG to deliberations on legislation but the AG is careful to
accept invitations from Committees on legislation. The OAG will only comment on audit issues or
accountability issues.
The Auditor-General may meet with Ministers to inform them on any issues relevant to their
portfolios.
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The Research assistance given to SCOPA is of a high caliber seconded from the Library of Parliament.
The AG assists in the formulation of questions; in many instances, a question can sound right but make
no sense.
Responsiveness to Parliamentary requests
The AG is open to receiving requests from the SCOPA to audit certain areas of interest to the SCOPA.
The Auditor-General still holds a discretionary mandate with regard to this and can exercise her
judgment to decide on Audit requests. If it distracts the AG from her primary responsibilities then she
can refuse. There are three factors in considering the request:

Funds,

Importance and

Available resources
The AG’s budget funds the request. The implications in accepting the request mean that a line function
either moves or is postponed. Section 11 of the AG Act of 1977 allows the AG to approach the
Treasury for additional funds to accommodate the request from SCOPA but usually the process for
approval takes some time. Alternatively, the AG drafts the audit assignment to clarify the areas for
auditing and then incorporates it into their budget proposal.
Canadian House of Commons Standing Committee on Public Accounts
Composition of the Public Accounts Committee
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Mr John Williams, a member of the opposition, chairs the Standing Committee on Public Accounts of
the Canadian House of Commons.
The House of Commons Parliamentary support provides the Committee with:

2 Researchers from the Library of Parliament

1 Clerk from the House of Commons

Free office accommodation for MP’s including telephone, fax, cell phone and Internet access
The Committee has a $3 000 000 budget decide by the Committee for spending by the Committee. The
Chairperson receives a salary of $150 000 pa. In addition each Member of Parliament receives a
budget of $250 000.
This budget is used for:

Staffing Constituency Office: 2 staff in Ottawa and 2 in Constituency

Anything over budget is paid for out of the MP’s salary
In addition, each MP receives:

$70 per diem

Car mileage allowance of 40c per km

The Chairperson receives $16 000 pa for accommodation in Ottawa

64 points for travel: 1 point for travel from Constituency to Ottawa

Pension accumulates at 3% pa; the Member must be in office for six years. It is largely state
funded with a percentage paid by the MP. The pension activates at Fifty-five years of age.
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The committee has nine members mainly composed of backbenchers, normally new members. No
whips are present on the committee. The SCOPA is the training ground for MPs and they usually
express an interest to go to another committee of preference. This is in contrast to the British and India
models where membership is normally reserved for more senior members.
The SCOPA has a permanent Researcher who is seconded from the Library of the House of Commons
and is responsible for committee continuity. The researcher is the prime drafter of resolutions. The
Clerks service the committee on a rotational basis. They know the procedure but lack the in-depth
knowledge of issues related to SCOPA.
On the tabling day of the November 2004 report, the chairperson of the SCOPA hosts a preview of the
report. The invitation is extended to the media via the chairperson’s office but the OAG foots the bill.
The OAG presents an overview of the report to members and facilitates a question and answer session.
MP’s have advanced information and ask pointed questions for clarity on issues alluded to by the AG.
Members are allocated a strict time frame for questions, and are not allowed to go over their allocated
time. The governing power present is able to inform the ministry after the session on any issues
sensitive to its portfolio.
The AG is present as a witness during hearings and provides testimony on progress made by
departments or to verify information. Her presence gives a better focus to the discussion or hearing.
The SCOPA writes the report based on the evidence given but it needs objectives for the hearing and
assessment to define the report to the house.
Follow up issues
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The SCOPA seeks commitment during the hearing with specific timelines associated with an action
plan. There is a 150-day timeframe for government to respond to the resolution and produce an action
plan. Usually the first order of business is for the SCOPA to reinstate the request for responses
previously made. The committee finds it helpful to be precise in requesting information.
The ministry tables the reply to Parliament who then refers it to the SCOPA. The OAG does not
follow-up on the issues again. It will give an assessment of the action plan and how effective it is in
addressing the situation.
Financial management and the need for a capability model20
Financial management in the Public sector having been bolstered by the introduction of the Public
Finance Management Act21 has of necessity been required to undergo challenging and stressful
changes in its approach to managing public finances. The PFMA ushered in, as Minister Manuel puts
it, “[t]he basis for a more effective corporate governance framework for the public sector.” The
effectiveness of this framework still varies among organizations and often within organizations over
time.
The Auditor-General of South Africa is mandated by section 188(1) of the Constitution of the
Republic of South Africa, Act 108 of 1996 to report on the accounts, financial statements and financial
management of –
a) All national and provincial state departments and administrations;
b) All municipalities; and
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c) Any other institution or accounting entity required by national or provincial
legislation to be audited by the Auditor-General.
Financial management is not a clearly defined area to audit, as there are no clear auditing guidelines.
The Auditors–General of Canada and South Africa observe and report on problems in government
departments and parastatals that often occur because of failings in financial management practices. The
demand is growing for complete, accurate, timely financial information to be produced that enable
management and Parliamentarians to take informed decisions on the efficiency, effectiveness, and
economy of government programmes.
In the 1997 Report of the Auditor-general of Canada – April – wherein the development of a capability
model is raised, the Office of the Auditor-General raises a number of questions of concern in assessing
the strength of financial management in the federal government.
Toward achieving the prescribed mandate, the OAG has implemented a Financial Management
Capability Model based on a capability model developed by the Canadian Audit Office and adapted
for the South African market. All entities will be evaluated against this capability model.
The Canadian Financial Capability Model (FCM)22
The FCM is an initiative of the Canadian Office of the Auditor-General. It is an assessment tool for
departments to assess their level of maturity in effectively managing public finances. The FCM details
the steps an institution needs to fulfill in order to progress in grading. It therefore starts out at the level
of a startup organization with minimal experience and systems for financial management and
progresses to more complex and efficient organizations.
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This framework for financial management allows Government institutions to use the tool as a road
map to improve their level of financial management by:
Assessing its current level of maturity,
Determine its financial management requirements according to its current complexity and risk factor,
Assess its current capabilities against the requirements it has determined, and
Identify the gaps between those requirements and its existing financial capabilities.
The Financial Capability Model: Maturity Levels
The modified capability model used by the Auditor-General of South Africa covers:
Level 1 - Start-up level
No proper control framework
Basic planning and control is taking place on an ad hoc basis.
Financial accounting and internal control systems are not properly developed.
No internal audit systems or audit committee has been established.
Level 2 – Development level
Develop and document a proper internal control framework and financial accounting processes
Financial accounting and internal control systems are developed and documented (including computer
systems).
Internal Audit systems and audit committee have been established.
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Level 3 – Control level
Focus on the proper implementation and functioning of financial accounting and internal control
systems, including compliance with the PFMA and other reporting requirements.
Level 4 – Information level
Focus on measuring how resources are used with reliable and sufficient financial information
Level 5 – Managed level
Focus on balancing efficient and economical use of resources with quality and/or effectiveness of
results achieved.
Level 6 – Optimising level
Focus on continuous improvement and learning
Lessons learnt in implementing FCM
Departments were apprehensive about being rated especially those who suspected a poor rating. The
Treasury Board took some actions to sensitize departments to the FCM.

The same team conducted the audits at different departments to ensure consistency in
judgment.

The team met regularly to discuss ratings and revisit the results where earlier ratings seemed
harsher than later assessments

The OAG did a series of presentations to the Departments to sensitize them, get feedback and
market the model.
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Treasury Board Secretariat
Governance of Crown Corporations
Comptrollership and Oversight (Financial Management and Control)
Accrual Accounting in the Federal Government
The Role of the Comptroller General
The Treasury Board Secretariat is the administrative arm of the Treasury Board. It supports the TB and
acts as the central government agency according to the Financial Administration Act of 1985. It fulfills
its mandate by providing advice and support to the TB and oversees the financial management
functions in departments and agencies.
The Office of the Comptroller General was re-established with effect from 1 June 2004. The
Comptroller General provides leadership and enforces appropriate financial controls in government. It
reviews the auditing standards of government and is responsible for ensuring the implementation of the
Internal Audit component. Furthermore, the Comptroller General interprets policy, appoints the CFO
and defines the roles and responsibilities of the CFO.
Governance of Crown Corporations
Crown Corporations are entities of government that turn a profit. Parliament creates, dissolves and
privatizes Crown Corporations. The Minister is the link between the Crown Corporation and
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Parliament and may decide on whether he is represented by a Deputy Minister, Board or CEO. The
Treasury Board Secretariat produce consolidated performance reports on Crown Corporations. The
Auditor-General audits the Crown Corporations and the AG and the Crown Corporation’s Internal
Audit reports appear on the website of the Treasury Board.
Comptrollership and Oversight
The Office of the Comptroller General (OCG) sees the strengthening of financial management as a
process moving forward from generality to specifics.
The Sponsorship scandal reported on in the November 2003 report of the Auditor General highlighted
the need for greater transparency and accountability with regard to government spending. Canadians
are becoming increasingly interested in the management of the financial environment and the call from
stakeholders for increased transparency of financial and performance information required the
Government to strengthen certain aspects of its management environment.
The Prime Minister views the strengthening of the public sector in a serious light and the President of
the Treasury Board highlighted the Government’s plan to transform and strengthen public sector
management through:

Strengthening comptrollership and oversight;

Reviewing government expenditures and modernizing management practices

Assuring accountability, transparency, good governance and an enhanced role for Parliament;
and

Building capacity across the federal public service23
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As Government increases in complexity more and tighter controls are required. The OCG limits the
instances of misspending and control failures.
Key initiatives taken
The TBS embarked upon certain initiatives to strengthen financial management:

It re-established the Office of the Comptroller General of Canada to oversee government
spending

It reorganised and strengthened the internal audit function;

Modernised the financial management system;

Reviewed the Financial Administration Act

Embarked on more pro-active reporting on contracts greater than $10 000 and

Is moving forward to audit all annual financial statements of departments
The Treasury Board faces other challenges to restore a reliable control environment. Departments
previously had to cut their budgets due to deficits and the Internal Audit component was a casualty of
this exercise. Staffing the Internal Audit component is a challenge because the Departments are not
able to find recruits with the necessary financial background. An additional problem is that the Baby
Boom generation is retiring and leaving behind a void that needs to be filled.
In 1977, the House of Commons revised the Office of the Auditor-General Act including provision for
performance auditing. Performance Auditing was unknown to Canada and to the rest of the world with
the result that it became a challenge to recruit properly accredited comptrollers.
All Departments must be audited eventually. The South African Public Finance Management Act
(PFMA) is five years ahead of Canada. The Treasury Board is in the process of reviewing the
Financial Management Act (FMA) and changes are expected within 2005.
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The OCG admits that Departments’ financial statements are not yet up to scratch. It is working
towards building greater reliability on, and accuracy of, information.
More proactive reporting is taking place such as the travel and hospitality expenses of Ministers is
being reported on. This brings about an awareness of what is being spent.
A question from SCOPA applies public pressure and changes the situation. Ministers become more
aware that they are using public funds and must be more frugal. The Department publishes the dollar
figure spent on their website with additional information on why it occurred andincludes the
justification for the expense. The Deputy Minister is equal to a Director-General as AccountingOfficer and is responsible for reporting and accuracy of reporting.
Comptroller General’s observations on Chief Financial Officer (CFO)
Presently, Senior Financial Officers (SFO) and Senior Full-time Financial Officers (SFFO), deputy to
the SFO, whose posts will revert to CFO, perform the function of the CFO. The SFOs role is still
unclear because of the many functions ranging from general administrator to chief accountant that the
position fulfills. Furthermore, the SFOs role with regard to reporting lines is unclear within the
organizations hierarchy. In many instances, the SFO was promoted to the role of SFO but was not
educated for it.
The proposed solution is:

Intense refocus on financial management

Clarity of roles and responsibilities

Independence from operations and/or programme delivery
23 AUGUST 2005
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
Full-scope financial management responsibility

Senior executive responsibility and accountability

Appropriate competencies and qualifications, personal and professional

Continuum of financial management between TBS and Departments

Transition and sustainability of solution
Accrual Accounting
The move to accrual accounting started in the early 1980’s. The Treasury Board moved from a Cash
basis to a Modified Cash / Modified accrual basis of accounting. The transition period set the
infrastructure in place to convert to full accrual accounting.
The readiness of the departments to move over to full accrual accounting depended on:

Systems

Policies

People
Systems
To move over to accrual accounting departments needed the proper systems in place. This required a
significant financial investment and excellent project management. It also requires a balanced phasing
in of departments to ease the process. The TBS stress that new system infrastructure is the foundation
for improved reporting and decision making. Their must be dialogue with control systems and the
department must be able to communicate internally and externally system to system before
implementation of accrual accounting can commence.
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Policies
The new chart of accounts requires extensive training of staff and the policies that guide the process
must be specific. The TBS advise that where costs are not available departments must be practical in
decision making.
People
Professional staff with accrual accounting experience must be hired. Communications and training is
critical. The workload capacity must be carefully monitored but there are tremendous opportunities for
personal growth and challenge.
Global Organisation of Parliamentarians Against Corruption (GOPAC)
Mr John Williams, Chairperson of the Standing Committee on Public Accounts of the Canadian House
of Commons, chairs the Global Organisation of Parliamentarians Against Corruption (GOPAC). Mr
Williams introduced members to the organisations purpose, goals and initiatives and requested
members to take up the cause.
The GOPAC initiative was established October 2002 at the Global Conference in Ottawa, Canada to
combat corruption through “specific initiatives that have clear measurable results.”24 Its aim is to
legislate against corruption and it therefore believes that the starting point to combating corruption lies
in fixing the legislature.
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Members of various countries join the initiative as individuals and lobby for other parliamentarians in
their country to join GOPAC. When enough MP’s in one country join, they form a Regional Chapter.
Enough Parliamentarians from the National as well as Provincial arena will form Provincial Chapters
and address issues at the grass roots level.
The key thought behind the initiative is to hold government accountable. Corruption is more prevalent
in governments where openness and transparency is lacking. When parliamentarians with leadership,
initiative and high moral values start taking a stand against corruption, other parliamentarians of like
mind are encouraged to take action. GOPAC’s goal is to engage legislatures and parliamentarians to
identify “clear and specific objectives and move these forward towards implementation.”25 This is a
hard issue to fight alone. A single voice is easy to discredit but as a collective voice, corruption is
easier to overcome.
Financially parliamentarians are at a disadvantage, as they often do not have the training or research
capacity to hold governments to account. Each regional chapter of GOPAC is required to lobby
support from government organisations and NGO’s that can supply the financial resources or skills
required to be properly capacitated.
GOPAC, as a global organization, offers its members the following information resources:

Handbook for Parliamentarians on controlling corruption;

A training / orientation package for parliamentarians on the budgetary and financial oversight
role of parliamentarians;
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
A code of conduct for parliamentarians

Indicators of performance for parliamentary oversight;

Parliamentarians with an anti-money laundering agenda; and

Implementing the United Nations Convention Against Corruption (UNCAC)
GOPAC Executive
The Executive consists of a seven member Board of Directors selected by each regional chapter. Fully
recognized chapters obtain seats on the board to guarantee that the board is representative of its
membership.

John Williams, Canada, Chair

Naser Al Sane, Kuwait

Son Chhay, Cambodia

Giovanni Kessler, Italy

Kim Yong Hwan, Korea

Musikari Kombo, Kenya
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
PAGE: 429 of 644
Cecilia Romero, Mexico
Secretariat
A professional secretariat based at the not-for-profit Parliamentary Centre in Canada provides support
to GOPAC. The Parliamentary Centre has over thirty years experience giving support to
parliamentarians around the world.
Martin Ulrich,
Executive Secretary
mulrich@rogers.com
Meaghan Campbell,
Program Manager
campbeme@parl.gc.ca
GOPAC CHAPTERS
Africa: African Parliamentarian’s Network Against Corruption (APNAC) [covering the
Sub-Saharan region]
National sub-chapters: Chad, Kenya, Nigeria, Tanzania, and Uganda
North East Asia: North East Asian Parliamentarians Against Corruption (NEAPAC)
National sub-chapters: Republic of Korea
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South East Asia: South East Asian Parliamentarians Against Corruption (SEAPAC)
Middle East: Arab Parliamentarians Against Corruption (APAC) [underdevelopment]
Europe: European Union (EUPAC) [underdevelopment]
Russia: Parliamentarians for Parliamentary Control (PPC)
Newly Independent States of the Former Soviet Union: Newly Independent
States (NISPAC)
Sub-regional chapter: Caucuses
North America: North American Parliamentarians Against Corruption (NAPAC)
National sub-chapters: Canada
Latin America: Latin American Parliamentarians Against Corruption (LAPAC)
The SA High Commission Cocktail Evening
The High Commissioner for the Republic of South Africa to Canada, Her Excellency Ms Theresa
Solomon, hosted a cocktail evening of South African food and wine for the delegation and invited
guests from the Office of the Auditor-General, the Chairperson of the Standing Committee on Public
Accounts and staff from Foreign Affairs.
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We extend our thanks and appreciation for the professional courtesy and warm welcome the High
Commissioner extended to the delegation.
Conclusion
The Committee was able to reach the objectives and goals set out in the original aim of the study tour.
The information and insights obtained by the Committee will assist in future planning and activities
with regard to:

The relationship between the AG and SCOPA

Procedures and Practices with relating to SCOPA

The nature and impact of Forensic Auditing

Accrual Auditing

Support and Research capacity available to SCOPA

The role of Treasury in the implementing of full accrual and accounting policy changes
Acknowledgements
The Committee acknowledges the support extended to it by the following persons:
High Commission for the Republic of South Africa

Her Excellency Ms Theresa M Solomon
High Commissioner for the Republic of South Africa to Canada
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
PAGE: 432 of 644
Ms Nowetu Luti
High Commission for the Republic of South Africa to Canada
The Office of the Auditor-General

Ms Sheila Fraser FCA
Auditor-General of Canada

John Wiersema, FCA
Deputy Auditor General

Mr Hugh McRoberts
Assistant Auditor General

Mr Ronald Thompson
Assistant Auditor General

Mr Jean Ste-Marie QC
Assistant Auditor-General

Mr Frank Vandenhoven CMA
Principal
Frank.Vandenhoven@oag-bvg.gc.za

Mr Neil Papineau
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Principal (Forensic Accounting)

Ms Antonine Campbell
Principle, International Relations
The Standing Committee on Public Accounts of the House of Commons

Mr John G Williams, F.C.G.A: Member of Parliament, Chair of the Standing Committee on
Public Accounts and the Global Organization of Parliamentarians Against Corruption
(GOPAC)
www.johnwilliams.ca

Ms Elizabeth B Kingston, M.A.
Clerk: Standing Committee on Public Accounts
kingse@parl.gc.ca
The Treasury Board Secretariat

Mr William G Bradshaw, CGA
Senior Director: Financial Management Policy Division
Comptrollership Branch

Chantal Lemyre, CGA
Senior Financial Analyst: Government Accounting Policy Division
Financial Manager Policy and Analysis Sector
Comptrollership Branch
23 AUGUST 2005

PAGE: 434 of 644
Mr David Salie, PhD, MBA
Crown Corporation Policy and Information Division Service and Innovation
Salie.David@tbs-sct.gc.ca
Bibliography and list of publications obtained
1. November 2003 Report of the Auditor-General of Canada to the House of Commons
November 2004 Report of the Auditor-General of Canada to the House of Commons
2. House of Commons Third Report of the Standing Committee on Public Accounts, 38th
Parliament, 1st session
3. Strengthening Public Sector Management: An overview of the Government Action plan and
Key Initiatives
4. Treasury Board of Canada Secretariat Management Accountability Framework
5. Looking Back and Moving Forward: Auditor-General of Canada’s First Report to the Second
Legislative Assembly of Nunavut 2004
6. Strategic Plan for the Office of the Auditor-General of Canada
7. Office of the Auditor-General of Canada 2004-05 Estimates Part III - Report on Plans and
Priorities
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8. Office of the Auditor-General of Canada Performance Report for the period ending March 31,
2004
9. Public Accounts of Canada 2004

Volume I Summary of Report and Financial Statements

Volume II Details of Expenses and Revenues

Volume III Additional Information and Analyses
10. Report of the Commissioner of the Environment and Sustainable Development to the House of
Commons – Chapter 5 Fisheries and Oceans Canada – Salmon Stocks, Habitat and Aquaculture
11. Report of the Auditor-General of Canada to the House of Commons – Chapter 3 national
Security in Canada – The 2001 Anti-Terrorism Initiative
12. News Release Communique Office of the Auditor-General for November 2004 Report
13. Documentation Kit for Visitors: Office of the Auditor-General

Introduction

Auditor-General Act

Part X Crown Corporations

Information on the Office of the Auditor-General

Organisation Chart of the Office of the Auditor-General
14. “How should the Government measure spending? The uses of Accrual Accounting” by F
Stevens Redburn, Economist with the Office of Management and Budget
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15. Cash v Accrual Accounting, Nolo:
Http//www.nolo.com/lawcenter/ency/article.cfm/objected/08E205EE-E8B6-4D25-A2B0
16. Accrual Accounting and Budgeting National Treasury/OECD Technical Seminar, Pretoria, 15
March 2001
17. Canadian Council of Public Accounts Committees: Guidelines for Public Accounts
Committees in Canada
18. The Financial Capability Model and the Records Management Function by John McDonald
19. Financial Management: Developing a Capability Model
20. Activity Report of the Auditor-General for the financial year 2002-03
21. Strengthening Financial Management and Control; Presentation slides to members of the South
African Public accounts Committee, November 24, 2004
22. Global Organization of Parliamentarians Against Corruption (GOPAC) Information and CD
Rom pack
23. Treasury Board of Canada Secretariat (http://www.tbs-sct.gc.ca)
24. The Office of the Auditor-General of Canada, Jean Ste Marie Q.C. Assistant Auditor-General
and Legal Advisor Presentation slides November 10, 2004
23 AUGUST 2005
PAGE: 437 of 644
25. Office of the Auditor-General Relations with Parliament – Presentation slides
26. Accrual Accounting and the Summary of the Financial Statements – OAG Presentation slides
27. Overview of the Office of the Auditor-General and the Commissioner of the Environment and
Sustainable Development presentation slides
28. Office of the Auditor-General of Canada – Forensic Auditing Presentation slides
29. Treasury Board Secretariat of Canada Accrual Accounting Presentation slides
30. Treasury Board Secretariat of Canada Governance and Accountability of Crown Corporations
Presentation slides
31. Financial Administration Act
Report to be considered.
THURSDAY, 4 AUGUST 2005
ANNOUNCEMENTS
National Assembly
23 AUGUST 2005
PAGE: 438 of 644
The Speaker:
1.
Membership of the Assembly
Mr E M Dipico, in resigning as member of the National Assembly with effect from 1 August
2005, at the same time also vacated the post of Parliamentary Counsellor to the President.
2.
Referrals to committees of papers tabled
The following papers have been tabled and are now referred to the relevant committees as
mentioned below:
1.
The following paper is referred to the Portfolio Committee on Foreign Affairs:
(a) The South African Parliamentary Observer Mission Report on the 2005
Zimbabwe Parliamentary Elections – 31 March 2005.
2.
The following papers are referred to the Portfolio Committee on Finance:
(a) Response of National Treasury to Recommendations of the Portfolio Committee on
Finance on Budget Vote 8 – National Treasury for 2005-2006 and Strategic Plan.
b) Response of South African Revenue Services (SARS) to Recommendations of the Portfolio Committee
on Finance on the Strategic Plan of the South African Revenue Services (SARS) for 2005 to 2008.
23 AUGUST 2005
c)
PAGE: 439 of 644
Response of Statistics South Africa to Recommendations of the Portfolio Committee
on Finance on Budget Vote 13 – Statistics South Africa.
d)
Annual Report of the South African Reserve Bank - Bank Supervision Department
for 2004 [RP 10-2005].
e)
Government Notice No 535 published in Government Gazette No 27656 dated 6
June 2005: Notice setting out particulars of areas demarcated by Municipalities of
Ekurhuleni, Msunduzi, Nelson Mandela and Polokwane in terms of section 13quat of
the Income Tax Act, 1962 (Act No 58 of 1962), which shall constitute urban
development zones.
(f) Proclamation No R.25 published in Government Gazette No 27681 dated 17 June 2005:
Fixing of a date on which section 14(1)(a) of Revenue Laws Amendment Act, 2004 (Act
No 32 of 2004), shall come into operation.
3.
The following papers are referred to the Portfolio Committee on Justice and
Constitutional Development:
(a) Draft Regulations made in terms of the Promotion of Administrative Justice Act, 2000
(Act No 3 of 2000).
(b) Proclamation No R.18 published in the Government Gazette No 27458 dated 6 April
2005: Referral of matters to existing Special Investigating Unit and Special Tribunal,
23 AUGUST 2005
PAGE: 440 of 644
made in terms of section 2(1) of the Special Investigating Units and Special Tribunal
Act, 1996 (Act No 74 of 1996).
4.
The following papers are referred to the Portfolio Committee on Arts and Culture
consideration. The Reports of the Auditor-General are referred to the Standing Committee
on Public Accounts for consideration:
(a) Report and Financial Statements of the National Arts Council of South Africa for 20032004, including the Report of the Auditor-General on the Financial Statements for
2003-2004.
(b) Report and Financial Statements of Robben Island Museum for 2003-2004, including
the Report of the Auditor-General on the Financial Statements for 2003-2004 [RP 2122004].
5.
The following paper is referred to the Portfolio Committee on Defence and the Joint
Standing Committee on Defence:
(a) Letter from the President of the Republic of South Africa to the Speaker of the
National Assembly dated, 12 July 2005, informing the National Assembly of the
employment of the South African National Defence Force in Cote D” Ivoire.
6.
The following paper is referred to the Portfolio Committee on Public Service and
Administration for consideration:
23 AUGUST 2005
PAGE: 441 of 644
(a) Report of the Public Service Commission on Financial Misconduct for 2002-2003 and
2003-2004 financial years [RP 41-2005].
7.
The following papers are referred to the Portfolio Committee on Transport for
consideration. The Reports of the Auditor-General are referred to the Standing Committee
on Public Accounts for consideration:
(a) Report and Financial Statements of the South African Maritime Safety Authority
(SAMSA) for 2002-2003, including the Report of the Auditor-General on the Financial
Statements for 2002-2003.
(b) Report and Financial Statements of the South African Maritime Safety Authority
(SAMSA) for 2003-2004, including the Report of the Auditor-General on the Financial
Statements for 2003-2004.
8.
The following papers are referred to the Portfolio Committee on Safety and Security:
(a) Proclamation No R.18 published in Government Gazette No 27502 dated 15 April
2005: Commencement of the Protection of Constitutional Democracy Against Terrorist
and Related Activities Act, 2004 (Act No 33 of 2004).
(b) Government Notice No R.474 published in Government Gazette No 27598 dated 20
May 2005: Direction by the National Commissioner of the South African Police
Service in terms of section 12(3) of the Protection of Constitutional Democracy
Against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).
23 AUGUST 2005
9.
PAGE: 442 of 644
The following papers are referred to the Portfolio Committee on Safety and Security for
consideration and report in terms of section 26 of the Protection of Constitutional
Democracy Against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004):
(a) Proclamation No R.22 published in Government Gazette No 27598 dated 20 May
2005: Notification by President in respect of entities identified by the United Nations
Security Council in terms of section 25 of the Protection of Constitutional Democracy
Against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).
(b) Proclamation No R.31 published in Government Gazette No 27746 dated 1 July 2005:
Notification by President in respect of entities identified by the United Nations
Security Council in terms of section 25 of the Protection of Constitutional Democracy
Against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).
(c) Proclamation No R.29 published in Government Gazette No 27713 dated 1 July 2005:
Notification by President in respect of entities identified by the United Nations
Security Council in terms of section 25 of the Protection of Constitutional Democracy
Against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).
10. The following papers are referred to the Portfolio Committee on Trade and Industry:
(a) Government Notice No R.282 published in Government Gazette No 27419 dated 29
March 2005: Assignment of inspection functions in terms of the credit Agreements
Act, 1980 (Act No 75 of 1980).
23 AUGUST 2005
PAGE: 443 of 644
(b) Government Notice No R.283 published in Government Gazette No 27419 dated 29
March 2005: Assignment of inspection functions in terms of the Sale and Service
Matters Act, 1964 (Act No 25 of 1964).
(c) Government Notice No R.293 published in Government Gazette No 27440 dated 8
April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962
(Act No 58 of 1962).
(d) Government Notice No R.294 published in Government Gazette No 27440 dated 8
April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962
(Act No 58 of 1962).
(e) Government Notice No R.295 published in Government Gazette No 27440 dated 8
April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962
(Act No 58 of 1962).
(f) Government Notice No R.296 published in Government Gazette No 27440 dated 8
April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962
(Act No 58 of 1962).
(g) Government Notice No R358 published in Government Gazette No 27475 dated 15
April 2005: International Trade and Administration Commission of South Africa:
Countervailing Regulations in terms of the International Trade Administration Act,
2002 (Act No 71 of 2002).
23 AUGUST 2005
11.
PAGE: 444 of 644
The following papers are referred to the Portfolio Committee on Water Affairs and
Forestry:
(a) Government Notice No 513 published in Government Gazette No 27614 dated 3 June
2005: Release of parts of a state forest which is no longer required for forestry in terms
of sections 50(4) of the National Forests Act, 1998 (Act No 84 of 1998).
(b) Government Notice No 874 published in Government Gazette No 27650 dated 3 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of
ground cover, including slash, the clearing or maintenance of a fire belt by burning or
the execution of blockburns: Kwazulu-Natal Province in terms of the Forest Act, 1984
(Act No 122 of 1984).
(c) Government Notice No 531 published in Government Gazette No 27641 dated 10 June
2005: Transformation of the Umlaas Irrigation Board. Magisterial Districts of
Pietermaritzburg, Camperdown and Richmond, Kwazulu-Natal Province, into the
Upper Mlazi Water User Association, Water Management Area number 11, KwazuluNatal Province in terms of the National Water Act, 1998 (Act No 36 of 1998).
(d) Government Notice No 532 published in Government Gazette No 27641 dated 10 June
2005: Transformation of the Groenland Irrigation Board, Magisterial District of
Caledon (Theewaterskloof Municipality), Western Cape Province, into the Groenland
Water User Association, Water Management Area number 18, Western Cape Province
in terms of the National Water Act, 1998 (Act No 36 of 1998).
23 AUGUST 2005
PAGE: 445 of 644
(e) Government Notice No 533 published in Government Gazette No 27641 dated 10 June
2005: Transformation of the Vanwyksdorp Irrigation Board, Magisterial District of
Calitzdorp, Western Cape Province, into the Vanwyksdorp Water User Association,
Water User Association, Water Management Area number 16, Western Cape Province
in terms of the National Water Act, 1998 (Act No 36 of 1998).
(f) Government Notice No 534 published in Government Gazette No 27641 dated 10 June
2005: Establishment of the Nzhelele Catchment Water User Association, Vhembe
District Municipality, Limpopo Province, Water Management Area number 1 in terms
of the National Water Act, 1998 (Act No 36 of 1998).
(g) Government Notice No 558 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of
slash and clearing or maintenance of fire belts by burning and the execution of
blockburns: Districts of Nelspruit, White River, Pilgrim’s Rest, Lydenburg, Belfast,
Waterval-Boven, Carolina and Barberton in terms of the Forest Act, 1984 (Act No 122
of 1984).
(h) Government Notice No 559 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of
slash and clearing or maintenance of fire belts by burning and the execution of
blockburns: Districts of (A) Ermelo, Eerstehoek, Carolina and Waterval-Boven; (B)
Piet Retief and Wakkerstroom in terms of the Forest Act, 1984 (Act No 122 of 1984).
23 AUGUST 2005
PAGE: 446 of 644
(i) Government Notice No 560 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of
slash and clearing or maintenance of fire belts by burning and the execution of blockburns Vhembe District Municipality (formerly Soutpansberg areas) in terms of the
Forest Act, 1984 (Act No 122 of 1984).
(j) Government Notice No 561 published in Government Gazette No 27674 dated 10 June
2005: Prohibition on the making of fires in the open air, the destruction by burning of
slash and clearing or maintenance of fire belts by burning and the execution of blockburns Mopane District Municipality (formerly Letaba and Pietersburg Districts) in
terms of the Forest Act, 1984 (Act No 122 of 1984).
(k) Government Notice No 554 published in Government Gazette No 27664 dated 10 June
2005: Release of state forest land at Sederberg, Grootvadersbosch, Hawequas,
(Limtedberg) and Kogelberg Forest Reserves – Western Cape, which is no longer
required for forestry purposes in terms of the National Water Act, 1998 (Act no 36 of
1998).
(l) Report of the Department of Water Affairs and Forestry to the National Assembly on
Write-off of Loan Guaranteed by the State (Kanoneiland Settlement Management
Board), in terms of section 70(4) of the Public Finance Management Act, 1999 (Act
No 1 of 1999).
12.
The following paper is referred to the Portfolio Committee on Education:
23 AUGUST 2005
PAGE: 447 of 644
Government Notice No R.744 published in Government Gazette No 27819 dated 20 July 2005:
National Policy regarding Further Education and Training Programme: Approval of the Document, the
National Senior Certificate: A qualification at Level 4 on the National Qualifications Framework
(NQF), in terms of the National Education Policy Act, 1996 (Act No 27 of 1996) and the South
African Schools Act, 1996 (Act No 84 of 1996).
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Justice and Constitutional Development constituted in
terms of section 2A (5) of the Public Protector Act, 1994 (Act No. 23 of 1994) on the
Remuneration and Conditions of Service of the Deputy Public Protector, dated 4 August
2005:
The Portfolio Committee on Justice and Constitutional Development, having been constituted in
terms of section 2A (5) of the Public Protector Act, 1994 (Act No. 23 of 1994), and having
considered the matter of the remuneration and conditions of service of the Deputy Public Protector
and hereby recommends that the remuneration and conditions of service of the Deputy Public
Protector be determined as follows 
1. that the Deputy Public Protector receive an all inclusive flexible remuneration package of
R 619, 434.00;
2. that the remuneration package be structured within the following guidelinesbasic salary 60%
R 371 660 and
flexible portion
40%
R 247 774;
23 AUGUST 2005
PAGE: 448 of 644
3. that the flexible portion comprises:
Medical Aid;
Bonus (13th Cheque);
Housing Allowance;
Car allowance (maximum of 25% of total package); and
Cash allowance;
in any combination whatever;
4. that all conditions of service and service benefits, including annual increments; subsistence and
travel expenditure; relocation expenditure and all leave be determined in terms of the Public
Service Act, 1994 (Act No. 103 of 1994), as those provisions apply to the senior management
service ;
5. that membership of the Government Employee Pension Fund be specifically excluded; and
6. that the above remuneration and conditions of service come into operation upon the
appointment of the Deputy Public Protector by the President in terms of section 2A(1) of the Public
Protector Act, 1994 (Act No. 23 of 1994).
Report to be considered.
FRIDAY, 5 AUGUST 2005
23 AUGUST 2005
PAGE: 449 of 644
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson:
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
Nursing Bill, 2005, submitted by the Minister of Health on 26 July 2005. Referred to the
Portfolio Committee on Health and the Select Committee on Social Services.
(2)
Repeal of the Black Administration Act and Amendment of Certain Laws Bill, 2005,
submitted by the Minister for Justice and Constitutitonal Development on 29 July 2005.
Referred to the Portfolio Committee on Justice and Constitutional Development and
the Select Committee on Security and Constitutional Affairs.
2.
Fast-tracking of Bills
(1)
The Joint Subcommittee of the Joint Programme Committee on 4 August 2005 took a
decision, in accordance with Joint Rule 216(2), that the Constitutional Matters
Amendment Bill [B 22 - 2005] (National Assembly - sec 75) be fast-tracked by, where
necessary, dispensing with any relevant House Rule or Joint Rule and shortening any
period within which any step in the legislative process relating to the Bill has to be
completed, including the submission of the translated version of the Bill as introduced
before the debate in the National Assembly takes place. This process must be completed
in order for the Bill to be enacted and for the Act to be published in the Government
Gazette by 31 August 2005.
In terms of Joint Rule 216(4) this decision must be tabled in both Houses for
ratification.
23 AUGUST 2005
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MONDAY, 8 AUGUST 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson:
1.
Introduction of Bills
(1)
The Minister of Water Affairs and Forestry
(iii) Forestry Laws Amendment Bill [B 24 – 2005] (National Assembly – sec 75) [Bill
and prior notice of its introduction published in Government Gazette No 27877 of
5 August 2005.]
Introduction and referral to the Portfolio Committee on Water Affairs and Forestry of
the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for
classification in terms of Joint Rule 160, on 10 August 2005.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted
to the JTM within three parliamentary working days.
FRIDAY, 12 AUGUST 2005
23 AUGUST 2005
PAGE: 451 of 644
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
Assent by President in respect of Bills
(1) South African Sports Commission Act Repeal Bill [B 13B – 2005] – Act No 8 of 2005
(assented to and signed by President on 20 July 2005);
(2) Minerals and Energy Laws Amendment Bill [B 1 – 2005] – Act No 11 of 2005
(assented to and signed by President on 10 August 2005).
(3) National Ports Bill [B 5F - 2003] – Act No 12 of 2005 (assented to and signed by
President on 31 July 2005); and
(4) Intergovernmental Relations Framework Bill [B 3B - 2005] – Act No 13 of 2005
(assented to and signed by President on 10 August 2005).
2.
Introduction of Bills
(1)
(i)
The Minister for Justice and Constitutional Development
Repeal of Black Administration Act and Amendment of Certain Laws Bill [B 25 –
2005] (National Assembly – sec 76) [Bill and prior notice of its introduction published in
Government Gazette No 27845 of 28 July 2005]
23 AUGUST 2005
PAGE: 452 of 644
Introduction and referral to the Portfolio Committee on Justice and Constitutional
Development of the National Assembly, as well as referral to the Joint Tagging
Mechanism (JTM) for classification in terms of Joint Rule 160, on 12 August 2005.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted
to the Joint Tagging Mechanism (JTM) within three parliamentary working days.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister for Agriculture and Land Affairs
(a)
International Plant Protection Convention, tabled in terms of section 231(2) of the
Constitution, 1996 (Act No 108 of 1996).
(b)
2.
Explanatory Memorandum to the International Plant Protection Convention.
The Minister of Labour
(a)
Recommendation of the International Labour Organisation (ILO) – Recommendation No
195 concerning Human Resource Development: Education, Training and Lifelong
Learning, adopted by the Conference at its 92nd Session – Geneva, 17 June 2004.
3.
The Minister for Justice and Constitutional Development
23 AUGUST 2005
(a)
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Proclamation No R.26 published in Government Gazette No 27719 dated 27 June
2005: Referral of matters to existing Special Investigating Unit and Special Tribunal in
terms of the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of
1996).
(b)
Proclamation No R.27 published in Government Gazette No 27719 dated 27 June 2005:
Referral of matters to existing Special Investigating Unit and Special Tribunal in terms of
the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of 1996),
(c)
Government Notice No R.614 published in Government Gazette No 27719 dated 27 June
2005: Amendment of Regulations in terms of the Promotion of Administrative Justice Act,
2000 (Act No 3 of 2000).
4.
The Minister of Education
(a)
Report and Financial Statements of Umalusi – Council for Quality Assurance in General
and Further Education and Training for 2004-2005, including the Report of the
Independent Auditors on the Financial Statements for 2004-2005.
5.
The Minister of Environmental Affairs and Tourism
(a)
Report and Financial Statements of the Johannesburg World Summit Company for 20022003, including the Report of the Independent Auditors on the Financial Statements for
2002-2003.
23 AUGUST 2005
(b)
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Report and Financial Statements of the Johannesburg World Summit Company for 20032004, including the Report of the Independent Auditors on the Financial Statements for
2003-2004.
COMMITTEE REPORTS
National Assembly and National Council of Provinces:
1. Report of the Joint Budget Committee, dated 22 June 2005:
(INCORPORATING REPORT ENVISAGED IN ITEM 9 OF THE COMMITTEE’S TERMS
OF REFERENCE)
Strategic Plan for Joint Budget Committee
Table of Contents
Strategic Plan for the Joint Budget Committee .......................................................... 455
1. Vision, mission and core goals for the strategic plan period ................................. 456
2. Background ................................................................................................................ 457
2.1 Terms of Reference ............................................................................................... 457
2.2 Underlying principles ............................................................................................ 458
2.3 Strategic Plan process............................................................................................ 460
3. Activities ..................................................................................................................... 460
3.1 Conceptualising the JBC’s role in budget preparation .......................................... 460
3.2 Conceptualising the JBCs role in the Legislative phase ....................................... 463
Diagramme 1: JBC Role and Activities in Budget Preparation and Approval Phases 466
3.3 Principles for JBC activities during Budget Execution ......................................... 466
4.
Committee structure and work method .............................................................. 469
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5 Operationalising the Strategic Plan .......................................................................... 471
5.1 Planning and budgeting ......................................................................................... 471
5.2 Monitoring and Evaluation.................................................................................... 471
annex 1. draft operational plan .................................................................................... 472
Strategic Plan for the Joint Budget Committee
The Joint Budget Committee (JBC) was constituted by a resolution of Parliament in 2003 to give effect
to several aspects of Parliament’s oversight responsibilities regarding the public finances. The current
JBC was convened in 2004 and its co-chairpersons elected later on that year. This document is the
result of a 4 month long process in the first half of 2005 to map out a way forward for the duration of
the current parliament in the form of a rolling strategic plan. The document, which will be updated in
2006, sets out the JBC’s strategy for developing its role in the budget process in practice, and for
engagement in the current MTEF and budget cycle.
In compiling the document the JBC set itself the task of being brief, activity-focused and transparent.
While a conceptual framework and the necessary background information is provided therefore, the
JBC endeavoured to be concise and clear in setting out a work plan for 2005 and 2006. The document
is set out in four main sections. Section one provides the conceptual framework for the JBC’s strategic
decisions by formulating its vision, mission and core goals for the strategic plan period (2005 to 2007),
the second frames the strategy by providing information on background factors such as the JBCs
Terms of Reference (TORs) and parallel processes elsewhere in Parliament affecting the JBCs work,
the third sets out the activities the Committee will undertake to achieve its objectives and the fourth
discusses how it will organize itself to undertake the activities.
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1. Vision, mission and core goals for the strategic plan period
The JBC’s vision is to have an effective role in budget management, facilitating improved spending
outcomes in terms of (i) aligning spending with government priorities, and (ii) ensuring value for
money.
JBC’s mission is to practice effective oversight over state spending on the consolidated budget (ie
national and provincial spending).
The JBCs goals to reach this mission are

To review and provide meaningful recommendations aimed at improving spending
effectiveness and efficiency to parliament on budget allocations in Appropriation Bill and the
MTBPS

To review actual expenditure reports on a monthly and quarterly basis for spending
effectiveness and efficiency

To engage the executive effectively in a dialogue on spending effectiveness through the above
two tasks.

To engage with, coordinate and guide portfolio and select committees work on the budget in
order to streamline parliament’s role in budget management

To put in place a structure and work method that will effectively make use of committee
capacity

To build its own resources in order to fulfill its mandate.
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2. Background
2.1 Terms of Reference
The TORs of the JBC for 2005 – as passed by the NA in concurrence with the NCOP – specify the
structure of the Committee (in terms of political party shares and number of members from the two
Houses respectively) and mandates it to undertake specific tasks. These tasks are
1. Consider the proposed allocations in the Medium-term Expenditure Framework and
Appropriation Bill (and whether these are in keeping with Government policy directions)
2. Consider the Medium-term Budget Policy Statement (MTBPS), with the exception of those
sections dealing with the macro-economic situation and revenue
3. Conduct hearings on the MTEF and the Budget Policy Review document, with the exception
of those sections dealing with the macro-economic situation and revenue
4. Monitor published actual revenue and expenditure per department (to ascertain whether they
are in line with budget projections)
5. Report on the MTBPS (regarding the matters referred to under 2 above) and quarterly on actual
revenue and expenditure per department (as in 4 above)
6. Make proposals regarding
a. The processes Parliament should follow with regards to its role in the development of
budgets in accordance with the Constitution
b. The nature of its functions relative to those of other committees in respect of the budget
process and conducting oversight
7. Report on its functions from time to time as necessary, but submit a final report not later than
the end of the next budget cycle in Parliament.
The TORs, as they currently stand, therefore mandate the JBC
23 AUGUST 2005

PAGE: 458 of 644
to engage with the distribution of expenditure (in relation to spending effectiveness and
efficiency) rather than with the aggregate level of expenditure or how the expenditure is to be
financed (revenue and borrowing);

to interact with three important sets of executive budgetary documentation, the MTBPS, the
budget documentation and the monthly and quarterly National Treasury (NT) reports on actual
expenditure;

to make recommendations as to the nature of its functions relative to those of other committees
This strategic plan addresses when and how the JBC will engage with the budget process in order to
fulfill these mandates.
The TORs also mandate the JBC to make recommendations regarding its role in the development of
budgets in accordance with the Constitution. This strategic plan does not address this mandate directly,
on account of a separate process in Parliament that is developing proposals in this regard under the
auspices of the Task Force on Accountability and Oversight. The JBC will however stay abreast of
developments in this process, and will share how it intends shaping its role in practice with the Task
Force.
2.2 Underlying principles
The JBC has formulated and accepted a set of principles that guide this Strategic Plan. These are
i.
Parliament’s intervention should strengthen accountability and the incentives for public
managers and office holders to be fiscally responsible, to allocate resources to priorities and to
minimise wastage.
ii.
The role Parliament defines for itself in the budget should balance influencing policy, with the
right to make amendments with the obligation to hold the executive to account.
23 AUGUST 2005
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iii.
Parliament should engage with the outer years of the MTEF.
iv.
Parliament deliberations on the budget should focus on the financing of existing legislation and
policy objectives (the link between policy and spending), and on the quality of spending and
service delivery (on what is achieved with spending).
v.
Parliament should intervene if there is a mismatch between policy and budget, and between
budget and spending (when budgets do not result in service delivery), when spending and
financial management is poor and when there is wastage.
vi.
The JBCs role should be formulated in line with the Constitutional framework regarding the
respective roles of the executive and the legislature on the one hand, and to the rights and
obligations of Parliament on the other. This means that Parliament will not duplicate or take
over the executive’s role of drafting and implementing the budget. Parliament’s role in the
budget is primarily one of oversight over executive action, not of action itself.
vii.
Parliament’s role in the budget should not disrupt the integrity of the budget, or the integrity of
the expenditure management system. The executive has superior information to draft the
budget – amendments by parliament should not result in poorer budget decisions.
viii.
If spending departments’ new policy proposals have already been rejected by the executive, the
parliamentary budget process should not allow an easy backdoor to fund new proposals.
ix.
Parliament should speak with a unified voice. Notwithstanding the right of each of the Houses
to differ, the process in Parliament should allow the Houses to reach some consensus on
reactions to the budget.
x.
The JBC’s role should not overtake that of portfolio and select committees. These committees
are the engine of engagement with vote level budgets. The JBC’s role is that of coordination. It
also has a substantive role in considering the distribution of available funds between votes.
xi.
The JBC’s process should make full use of other parallel processes, within Parliament and in
relevant institutions outside of Parliament, such as the Financial and Fiscal Commission (FFC)
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and the Office of the Auditor-General (OAG). The JBC should endeavour to liaise with these
institutions, and ensure that it receives the full benefit of on-going work in these institutions.
xii.
The JBC process should respect the NCOP’s unique role in terms of presenting provincial
interests. The NCOP’s role does not need to mirror or duplicate that of the NA, but should be
complementary.
2.3 Strategic Plan process
This document is the result of a two-day workshop held on 20 and 21 May 2005 in Gordonsbay. At the
workshop the JBC received briefings from the National Treasury, the FFC and the Office of the
Auditor General. The workshop was the culmination of a process started in February 2005 with a first
working session regarding the TORs of the JBC.
3. Activities
The JBC is facing the challenge of developing its role and work methods from the current state of
affairs to its vision: playing a substantive and meaningful role in a fully developed parliamentary
budget process. The activities set out below are therefore undertaken with the strategic intent of
expanding its role while paying due attention to capacity constraints. For convenience its activities are
arranged against the budget cycle – budget preparation, budget approval, budget execution, and audit.
In deliberating its activities for each phase, the JBC developed a set of guiding decisions that
demarcated its scope of work. For each phase these decisions are recorded first, followed by the
resulting activities, which are set out in numbered format in a table.
3.1 Conceptualising the JBC’s role in budget preparation
Guiding JBC decisions for activities
23 AUGUST 2005
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Budget preparation refers to the prioritization and allocation phases of the budget process (as set out in
the diagramme below) that lasts from April in previous year until the budget is tabled in Parliament.

The JBC will not actively participate (ie have a decision-making role) in the budget preparation
process: that is the prerogative of the executive.

In order to prepare thoroughly for its role in reviewing the MTBPS, the MTEF and the
Appropriation Bill, the JBC will request briefings from the Executive at key points in the
process.

Also, the JBC will attempt to influence in the preparation process. For this the JBC will submit
a pre-budget report to Parliament, which will set out issues of concern on account of
Parliament’s oversight over spending and spending departments, e.g. under spending in votes,
poor implementation of policies, poor service delivery, unauthorized spending etc. JBCs work
on quarterly reports and its engagement with Portfolio and Select Committees’ oversight work,
will determine content of pre-budget report

It is important for JBC to slot into earliest feasible slot on 2006/7 process which is already
underway.
Activities in the Budget Preparation Phase
Objective
Input into and early view on policy priorities, new spending policies and outstanding
issues
Activities
2006/7 – 2008/9 drafting cycle
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1. The JBC will be briefed by National Treasury at earliest possible point on

Budget process and Treasury Guidelines

Cabinet’s guidelines regarding budget priorities

Outstanding issues on spending departments’ budgets
The JBC will receive further briefings on outcomes of executive processes as cycle
unfolds
2. The JBC will receive briefings by Finance and Fiscal Commission on its
recommendations on the Division of Revenue Bill; and the outcome of FFC research in
other areas
3. The JBC will continue to work with the NT to maintain and develop observation status
in key executive events
4. The Portfolio and Select Committees will be briefed by spending departments on new
spending policies submitted to Treasury in terms of the budget process guidelines.
5. The Portfolio and Select Committees will channel comments / concerns to JBC for
inclusion in pre-budget report to executive
6. The JBC will provide a pre-budget report to executive in time for meeting of
Ministers’ Committee on Budget in October. The JBC will design a process for this
report, including whether it will be tabled in the main House, and whether a response will
be requested from the executive and when.
7. The JBC will meet on the MTBPS, consider whether its concerns have been addressed
and report to Parliament. The JBC will decide closer to the time whether to conduct
hearings.
2007/8 – 2009/10 preparation cycle
8. The JBC will review the effectiveness of its activities in the 2006/7—2008/9 cycle
early in 2006 and develop a programme for 2007/8 to 2009/10 along similar lines.
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9. In addition the JBC will identify key issues for in depth research (Public Expenditure
Review style) in the 2007/8 to 2009/10 cycle in October 2005 in order to inform its
engagement in this cycle
10. The JBC will highlight areas of concern for drafting 2007/8 to 2009/10 in its report
after the first reading of 2006/7 Budget
3.2 Conceptualising the JBCs role in the Legislative phase
Guiding decisions
1. The legislative phase starts when the Budget is tabled and ends when the relevant Acts are passed.

Parliament has the strongest constitutional mandate in the legislative phase of the budget
process.

The JBC will review allocations in line with government’s spending priorities and existing
legislation.

The JBC will however not attempt in depth engagement with all spending. Given current
capacity constraints, the JBC will rather focus on specific, substantive spending areas or
departments. These areas will be identified in advance of the budget being tabled, on account
of its oversight over actual expenditure and its interaction with Portfolio and Select
Committees. The JBC will also use its interaction with the executive in the budget preparation
phase to identify priority focus areas. These might be in line with the executive’s spending
priorities.

In the legislative phase the JBC will utilize the budget documentation to
o Relate past performance to spending plans
o Ascertain whether concerns in drafting phase have received attention
23 AUGUST 2005

PAGE: 464 of 644
The JBC will coordinate its investigation into specific spending areas with relevant portfolio
and select committees

In engaging with the budget as tabled in the immediate future, the JBC would pay particular
attention to
o Funding of new spending policies
o Changes over baseline
o Capital projects funding and implementation
o Intergovernmental issues (FFC report)
o Financial management issues
Activities in the Legislative Phase
Objective
Meaningful engagement with budget in approval phase, facilitation of public debate and
budget transparency on budgeting issues
Activities
For Budget 2006/7
1. The JBC will develop a process and discuss it with stakeholders in Parliament at the end
of 2005 to include Portfolio Committee and Select Committee input into its activities for
Budget 2006/7.
2. The JBC will hold hearings on selected issues after budget day.
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3. The JBC will compile a report for Parliament

The Report will present findings and make recommendations on the effectiveness
and efficiency of spending in specific areas as investigated over the course of the
budget cycle.

If relevant, the report will also make recommendations on new issues arising from
the Committee’s deliberations

If relevant, the report will make recommendations on budget allocations more
broadly (with other words on the distribution of expenditure between spending
areas) relating to the executive’s overall policy priorities and relating to existing
legislation.

The report will include recommendations not only on budget policy issues, but also
on issues of financial management where relevant

These recommendations will be aimed at
o Addressing progress on concerns highlighted in pre-budget report
o Highlighting areas of concern for upcoming budget (for which preparation in
executive is just starting), with other words, engage with forward treatment
in budget preparation of allocations in outer years
o Highlighting areas of concern for engagement with actual expenditure
reports
o Highlighting areas of concern for Portfolio and Select Committee follow-up
For Budget 2007/8
4. The JBC will review its set of post-budget activities in the course of 2006 for Budget
2007/8, taking into account the outcome of the Taskforce on Oversight and Accountability.
The Diagramme below sets out role and activities up to point of budget approval.
23 AUGUST 2005
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Diagramme 1: JBC Role and Activities in Budget Preparation and Approval Phases
PHASE
Prioritisation
phase
(Apr – Aug)
Allocation
phase
(Sept--Nov)
Preparing docs
(Dec to Jan)
Approval phase
(Feb to June)
Scope of
Role
ACTIVITIES
JBC request briefings
In principle
prerogative
of
executive
Purpose is
influence
before
budget
reaches
parliament
Focus of
JBC work
JBC make recommendations
•arising from quarterly reports engine
of influence (spending capacity)
•May do consolidated report into
allocation process in October
JBC considers MTBPS, particularly
outer two years and reports to
parliament
JBC considers spending
allocations in MTEF and
appropriation bill and reports to
Parliament
•In view of its recommendations in
October
•Selects critical spending areas
•Against government policy priorities
(overarching and at vote level)
•Outcomes of spending (engage with
budget documentation; measurable
objectives)
•Look at changes in allocations over
medium term related to policy
implementation and proposed outputs
•Considers PER type research as input
Inputs required
and work
method
•Emphasis on linking
to other institutions,
including FFC
•Emphasis on
coordination with
other committees,
particularly portfolio
and select
committees, SCOPA,
SCOF and PCOF.
•Specialisation in
committee with subcommittees, with
membership from
portfolio / select
committees looking at
specific spending
areas, issues
•Need to build
research capacity,
both internal and
through outsourcing
3.3 Principles for JBC activities during Budget Execution
Guiding Decisions
1. The JBC has a mandate to monitor the actual revenue and expenditure reports published by the
National Treasury. In fulfilling this task the JBC will

Link up its monitoring with its pre-budget work. With other words, it will track spending areas
and issues it highlighted in the pre-budget and budget report.

Coordinate with Portfolio and Select Committees by
o Alerting these committees to issues that should be tracked or that arise from the actual
revenue and expenditure reports
o Coordinating oversight on actual revenue and expenditure with oversight of Annual
Reports and Strategic Plans
23 AUGUST 2005

PAGE: 467 of 644
Target specific spending areas and departments on account of
o Experience with quarterly reports (year-on-year)
o Scopa and OAG
o From government policy priorities (eg DTI re job creation)
2. In order to practice effective oversight the monthly and quarterly reports on their own are not
enough. They need to be complemented by additional information from departments (through
sector committees)

the JBC would need monthly cash flow projections and the operational plans of spending
departments.

It would also need additional information on the strategic plan linkages to budget and the
quarterly reports.
Given current capacity, it is clear that the JBC will not be able to engage in depth with all spending
areas. It will therefore focus on specific spending areas to investigate beyond the numbers.
3. The JBC will utilise monthly and quarterly cash flow reports to
•
Watch for implementation of new spending policies (request additional information from
identified departments)
•
Underspending / savings
•
Pull through issues id-ed into implementation
•
Identify areas for closer focus
•
Personnel spending (vacancies and filled posts; particularly where personnel sizable portion of
budget)
Activities in the Execution Phase
Objective
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Effective parliamentary oversight over the implementation of the budget, service delivery
in line with plans
Activities (2005/6)
1. The JBC will request aggregate monthly cash flow projections for all spending
departments as soon as possible, plus updates during the year where relevant
2. JBC will request more detailed cash flow projections and operational plans from
specific spending departments, in coordination with the relevant Portfolio and Select
Committees
3. The JBC will request briefings from specific departments, in coordination with the
relevant Portfolio and Select Committees, on Strategic Plan linkages to budget and
operational plans and to the cashflow projections.
4. The JBC will request follow-up briefings, in coordination with the relevant Portfolio
and Select Committees, on implementation in line with Strategic Plan and Budgets, and
on the achievement of spending undertaken for specific spending departments.
5. The JBC will commission research on budget implementation in specific spending
areas and departments (in coordination with the relevant Portfolio and Select
Committees), piloting in 2005 – if funds can be raised – and extending the programme in
2006.
6. The JBC will compile quarterly reports for Parliament that relates the actual revenue
and spending reports to budget implementation and service delivery. The reports will
comment on progress with budget implementation overall. The reports will draw on
investigations into specific spending areas by commenting on

The timeliness of activities of the spending department

The efficiency of spending and the speediness and quality of service delivery
(JBC not only to investigate whether spending is taking place, but to which effect)
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7. At end of fiscal year the JBC will compile a briefing report to SCOPA highlighting
areas of high concern on account of its engagement with budget implementation.
The JBC expects to make slow progress in moving from commenting on spending to coordinate work
on and commenting on the timeliness, quality and efficiency of service delivery on back of the actual
revenue and expenditure reports. However, it will endeavour to shift its practice in this direction from
the 2005/6 spending year.
4. Committee structure and work method
The following principles were formulated for how the committee will work to fulfill the tasks set out
above.
1. There will be specialization within the committee. Specific members will be assigned to specific
sub-committees charged with engaging with specific spending areas, Portfolio and Select
Committees and spending departments.
2. The Committee will deliberate further as to whether this specialization in the current cycle will be
in line with the identified areas of investigation, or whether it will organize itself immediately in
broad functional sub-committees, to which specific spending area issues will be assigned. The
latter carries the benefit of being permanent for this Parliament, and of more in-depth engagement
over time.
3. The sub-committees will be the engines of the JBCs work. With other words, the committee will
meet mainly as a full committee
a. In September/October to agree and compile the pre-budget report
b. At the time of the MTBPS
c. After the Budget has been tabled
d. On a quarterly basis (see point 6 below)
23 AUGUST 2005
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However, the JBC Chair may call a full committee meeting at any point.
4. Portfolio and Select committees will be invited to delegate a ‘budget specialist’ who will
a. act as ‘floating’ members of the JBC, that is join the JBC and relevant JBC sub-committees
b. be the liaison with the JBC
c. facilitate joint sittings of the Portfolio and Select Committees and the JBC sub-committee
to undertake the activities as set out above.
The JBC will work through the Chairs of the relevant committees to agree and operationalise the
system. Part of this process would be to agree what level of representation the ‘budget specialist’
will enjoy on the JBC: whether as observers or full members.
5. The JBC will undertake in full committee and as sub-committees joint sittings -- albeit in the
budget preparation and approval or implementation phases -- with Portfolio and Select Committees
to
a. Deliberate on areas highlighted and formulate report findings and recommendations
b. Receive briefings from spending departments and National Treasury on specific spending
areas and issues
The JBC may at times formulate findings and recommendations not in a joint sitting, but with the
participation of the ‘budget specialist’ only.
6. On a quarterly basis the JBC will have extended meetings to
a. Agree on forward work of sub-committees
b. Report back on on-going work in sub-committees
c. Agree on Quarterly report to Parliament.
7. The JBC may create ad-hoc sub-committees to look at cross-cutting areas. Members of Portfolio
and Select Committees may be invited onto these committees.
8. When the cluster system is in place, the JBC will align its operations to make use of the system.
9. The JBC will commission research into specific spending areas that it targets for engagement.
23 AUGUST 2005
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10. The JBC may undertake oversight visits to spending departments or to service delivery sites as part
of its oversight work.
11. The JBC will draft a proposal before end 2005 to establish a Parliamentary Budget Office. To this
end it will delegate a sub-committee.
12. The JBC will formulate a strategy to increase financial resources of the committee in the
meantime, to undertake research and further development work.
5. Operationalising the Strategic Plan
This strategic plan is at a fairly high level. The JBC needs to undertake further development, as well as
monitoring activities in support of strategic plan implementation. This section briefly discusses the
further planning and budgeting; and monitoring and evaluation activities that are required.
5.1 Planning and budgeting
The JBC needs to programme steps in specific activity areas – for example getting agreement from
parliamentary structures on coordination between the committee and other committees and developing
a methodology for undertaking public expenditure reviews. It also needs to develop a guideline
financial requirement for undertaking the identified activities, and prioritise its activities against its
existing and potential financial resources. These activities will be undertaken in the 3rd quarter of 2005,
resulting in an operational plan for 2005/6. A draft implementation plan is provided in Annex 1. This
plan will be finalized in the 3rd quarter of 2005/6.
5.2 Monitoring and Evaluation
The JBC will monitor the effectiveness of its Strategy by holding a quarterly review meeting -- in
September 2005, November 2005, February 2006 and May 2006 -- to monitor progress with strategy
implementation, do a scan for changes in the national budget environment, identify obstacles to
23 AUGUST 2005
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strategy implementation and formulate mitigation strategies. The JBC will adjust the strategy in year if
required. The meeting in May 2006 will be more extensive, and will be utilized to roll over the
Strategy Document for 2007/8 – 2009/10 budget cycle.
Annex 1. Draft Operational Plan Outline and Budget
Operational Plan
2005
2006
2007
2
Discuss interface of activities with NT; briefing by National Treasury
Present
programme
of activities
to NT and
agree
interaction
for budget
cycle for
3 2006 Budget
Receive
briefing by
4 NT
4
Quarter
ACTIVITIES DURING BUDGET PREPARATION PHASE
3
Quarter
2
Quarter
1
Quarter
4
Quarter
3
Quarter
2
Quarter
1
Nov-Dec
Sep-Oct
Aug-Sep
1
23 AUGUST 2005
PAGE: 473 of 644
2005
2006
2007
4
Quarter
3
Quarter
2
Quarter
1
Quarter
4
Quarter
3
Quarter
2
Quarter
1
Nov-Dec
Sep-Oct
Aug-Sep
Further
events as
agreed with
5 NT
6
Briefing by FFC
First Briefing
7 completed
Present
programme
of activities
to FFC and
discuss
further
8 briefings
9
Briefing of Portfolio and Select Committees by spending agencies on new spending proposals
JBC clarify
process for
compiling
and
submitting
pre-budget
10 discussion
23 AUGUST 2005
PAGE: 474 of 644
2005
leadership;
Portfolio and
Select
Committee
11 Chairs
Portfolio and
Select
Committees
request
briefing from
spending
12 agencies on
4
Quarter
Parliamentary
3
Quarter
with
2
Quarter
Committees
1
Quarter
and Select
2007
4
Quarter
and Portfolio
3
Quarter
between JBC
2
Quarter
relationship
1
Discuss
Nov-Dec
MCoB
Sep-Oct
Aug-Sep
paper to
2006
23 AUGUST 2005
PAGE: 475 of 644
2005
of concern
13 for JBC
JBC prepare
pre-budget
report in time
for MCoB in
October
detailing
concerns,
submit in line
with agreed
14 process
4
Quarter
identify areas
3
Quarter
comments /
2
Quarter
channel
1
Quarter
Committees
2007
4
Quarter
Select
3
Quarter
Portfolio and
2
Quarter
briefing
1
receive
Nov-Dec
proposals;
Sep-Oct
Aug-Sep
new spending
2006
23 AUGUST 2005
PAGE: 476 of 644
2005
2007
4
Quarter
3
Quarter
2
Quarter
1
Quarter
4
Quarter
3
Quarter
2
Quarter
1
Nov-Dec
Sep-Oct
Aug-Sep
15
2006
JBC engages with MTBPS
JBC agrees
focus areas,
identifies
required
preparation
work and
agrees
programme
16 for MTBPS
JBC
preparation
17 for MTBPS
JBC meets on
MTBPS,
tables report
18 in Parliament
19
Review of programme for Budget 2006 preparation phase; preparation for Budget 2007
JBC reviews
activities and
finalise
20 programme
23 AUGUST 2005
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2005
of Budget
21 2007
4
Quarter
in preparation
3
Quarter
engagement
2
Quarter
research for
1
Quarter
depth
2007
4
Quarter
issues for in-
3
Quarter
Identify
2
Quarter
Budget 2007
1
phase of
Nov-Dec
preparation
Sep-Oct
Aug-Sep
for
2006
23 AUGUST 2005
PAGE: 478 of 644
2005
2006
2007
23
Develop and agree process in Parliament for Budget 2006 legislative phase
24 JBC finalises process
JBC discusses and agrees proposed
25 process with Parliamentary leadership
Joint workshop with Portfolio and
Select Committee chairs to discuss
26 process and roles and responsibilities
27
Parliamentary Budget Process 2006
28 JBC holds hearings
29 Compiles report
30
Review of legislative programme for Budget 2006, recommendations for 2007
JBC reviews successes and failures of
process for Budget 2006 and make
31 recommendations for Budget 2007
32
ACTIVITIES FOR BUDGET EXECUTION PHASE BUDGET 2005, 2006
JBC request spending department cash
flow projections for remainder of
33 2005, and 2006
34 JBC engages Portfolio and Select
Quarter
ACTIVITIES DURING LEGISLATIVE PHASE BUDGET 2006
4
Quarter
3
Quarter
2
Quarter
1
Quarter
4
Quarter
3
Quarter
2
Quarter
1
Nov-Dec
Sep-Oct
Aug-Sep
22
23 AUGUST 2005
PAGE: 479 of 644
Committees to select focus spending
departments
JBC requests detailed cash flow
projections and operational plans from
35 focus spending departments
JBC, together with focus department
Portfolio and Select Committees (if
relevant) requests briefings from
Continue for Budget 2006 and
selected departments on linkages
2007
between strategic plans, budgets,
36 implementation plans and spending
JBC Commissions research in selected
departments, pilot in 2005, roll-out in
37 2006
JBC compiles quarterly reports to
38 Parliament
JBC Compiles briefing report to
39 SCOPA
JBC Reviews acititivies for Budget execution
JBC reviews engagement with Budget
2005, adjust activities forward
40
JBC PROCESS, MANAGEMENT TASKS
41
Finalise programme and budget
JBC submits strategic plan to
42 Parliament
23 AUGUST 2005
PAGE: 480 of 644
JBC finalises operational plan and
43 prepares budget
JBC prepares funding proposals to
Parliamentary Secretariat, development
44 partners, others
2005
2007
interface with Portfolio and Select
Committees (Streamline with rows 11,
46 24)
JBC discusses and agrees proposed
structure and programme with
Parliamentary leadership (Streamline
47 with rows 11, 25, 34, 44)
Necessary delegations from Portfolio
48 and Select Committees made
JBC selects standing sub-committees
to undertake work, identifies ad hoc
committees for Budget 2005, 2006
49 work.
Quarter
JBC finalises committee structure,
4
Quarter
Finalise structures and process to undertake programme
3
Quarter
2
Quarter
1
Quarter
4
Quarter
3
Quarter
2
Quarter
1
Nov-Dec
Sep-Oct
Aug-Sep
45
2006
23 AUGUST 2005
PAGE: 481 of 644
Joint workshop with Portfolio and
Select Committee chairs to discuss
50 process and roles and responsibilities
JBC initiates discussion with Scopa
51 and agree protocols for engagement
JBC drafts proposal to establish
Parliamentary Budget Office; initiate
52 discussions
53
Strategic Management Tasks
Quarterly meetings to review strategic
effectiveness of programme, structures
and activities (streamline with rows
54 20,21, 30 and 43)
Roll over, adjust Strategic Plan for
55 2006/7--2008/9
National Assembly:
1. Report of the Portfolio Committee on Sport and Recreation on Oversight Visit to Free
State and North West Provinces - 31 January to 9 February 2005, dated 11 August 2005:
1. BACKGROUND
23 AUGUST 2005
PAGE: 482 of 644
A delegation representing the Portfolio Committee on Sport and Recreation visited the Free State and
North West Provinces in order to assess the progress that has been made in the sporting sector by the
provinces. In order to understand the problems and challenges experienced by sport councils,
municipalities and schools, the Committee intended to focus on the following aspects:
1. Promotion of mass participation to broaden South African participation locally and
internationally. To ensure mass participation is driven at national level as a major policy
initiative, e.g. Siyadlala programme.
2. Existence and impact of sport academies; existence of sport structures on the ground, e.g. sport
councils and mass participation coordinators.
3. Impact of USSASA and challenges facing the implementation of national programmes and
funding.
4. Development plans for Indigenous Games for the disabled and women especially in the key
nodal areas.
5. Involvement of sport councils in national events such as 2010 World Cup and their role in the
community.
6. Challenges experienced in relation to national lottery disbursement agency pertaining to sport
and recreation.
7. Visiting areas where Building for Sport and Recreation programme is implemented, evaluation
on the efficacy of the programme with regards to mass community participation and
determining the state of readiness of local structures to become implementing agents for the
programme.
2. INTRODUCTION
23 AUGUST 2005
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The multiparty delegation that constituted the visit to Free State on 31 January to 4 February and North
West from 6 to 9 February 2005 were:
1. Mr. B M Komphela, ANC (Chairperson) leader of the delegation
2. Mr. M M Dikgacwi, ANC
3. Mr. E Mtshali, ANC
4. Ms D M Morobi ANC
5. Mr. S J Masango DA
6. Ms N Mbuqe (Committee Secretary)
DAY 1 – 31.01 2005
3.
3.1 Meeting at Charles Mopedi Stadium
A meeting was held with the Chairperson of the St Standing Committee on Education, Sport, Arts,
Science and Technology; Mr. Joe Mathibe, an official from the provincial Department of Sport and
Recreation with Mass Participation Coordinators and members of sport councils. Mr. Komphela, the
Chairperson of the national portfolio committee on sport and recreation stated the objective of the visit
after introducing the delegation.
The delegation got full overview background about the facility from the municipal mayoral committee
chairperson and a tour was taken around the stadium. The facility is a world-class athletics stadium but
it is not well cared for. Among the findings were the following:

Lifts to the grand stand not working; titanic track needs maintenance and seats also need
replacements
23 AUGUST 2005

PAGE: 484 of 644
People with disability cannot access the grand stand easily and have four emergency
entrance/exit.

The facility is presently not fully utilised..

A good marketing strategy will assist in generating funds due to its good condition

After employment of security vandalism is minimal.

A facility manager needs to be employed.

The municipal chairperson promised to initiate adjustments on tariffs.

Lack of sport policy within the municipal structures and Maluti A Phofung municipality decided
to take over all facilities for maintenance purposes.

S A Golf development board has contracted a person to teach youth how to play golf.
IDP challenges
1 Sport is not a first priority and ring fencing of sport funds would be ideal.
2 Improvement on sport issues only took place after the establishment of the municipal sport
committee.
3 There is no indoor facility and Phutaditsjhaba stadium is constantly being vandalized in the
township.
4 Total costs in the plan for renovation is R66m.
The delegation encouraged the community members to maintain the ground. The facility is in
the middle of Bloemfontein, Gauteng and KZN so it could attract more spectators if well
marketed. A small size soccer field is proposed for practice in order to keep this one in good
shape. There is a technical issue about the ownership of the stadium but presently is owned by
the government.
23 AUGUST 2005
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3.2 Meeting with sport councils – Maluti A Phofung
Mr. Malefane, the Chairperson of the sport councils addressed the meeting with the following
challenges:

Lack of equipment due to disappearance in the hands of the sport councils.

Lack of offices for sport councils that leads to no coordination of sport activities

Need for indoor facility

Disabled persons desperately in need of transport and training programmes

Qwaqwa and Botshabelo are identified as nodal areas due to lack of employment.
The Mayoral Committee Chairperson also noted that the sport councils were appointed 2004 and they
are still not clear about their role. A workshop that was scheduled in December 2004 could not take
place due to communication breakdown. A follow up meeting will be convened for building close
relationship between sport council and municipality.
3.3 Visit to Mass Participation Programme [MPP] Hubs
The hubs are specifically identified in rural areas. Activity coordinators organized youth to
demonstrate the activities played in the area like soccer, handball and some indigenous games. Mr.
Morosi is one of the coordinators and is also running his own gym in a school hall. The hall was
packed with teachers and local people and they showed enthusiasm. They only pay R100 a month for
shape and good healthy living.
4. DAY 2 - 01.02.2005
23 AUGUST 2005
4.1
PAGE: 486 of 644
Visit to Virginia Sport Academy
The academy is in partnership with the University. Mr. Chris Coetsee, the manager of the academy
took the delegation through the buildings, where the boys sleep, dine and study. The academy
specializes in two codes currently, i.e. soccer and rugby. It consists of administrative block, kitchen,
lecture rooms, dormitory and other vandalized buildings that proposed for accommodation of netball
people in the near future. The dormitory has 36 students and there is a flat let that accommodates the
coaches. Two boys share a room but have individual beds.
The academy is predominantly Harmony Gold Mine owned together with the community that initiated
rugby school and not excluding other codes. Harmony Gold Mine is the biggest gold mine in South
Africa ploughing back to the community. The main objective of the academy is excellence. Harmony
is the main sponsor of the academy with contribution of R2million from Sports Trust and South
African Football Association [SAFA] also contributed. Harmony is also conducting life skills to the
community as part of development.

70 students accommodated but would expand the following year.

The main challenge so far is lack of resources.

Soccer house is operating the same as the rugby. Mr. Moseki is the coach and mentor to the
soccer boys using the blocks that were meant for miners but most are dilapidated and are in the
plans for renovations.

These boys attend lectures with prefects monitoring during study times. Negotiations are on the
way for proposing Virginia Academy to be school of excellence Research is also being done to
determine the possibility of academic school as well in partnership with the Department of
Education and Sport and Recreation.
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Harmony committed itself to fund the academy for R5milliom for the next five years. All the
athletes accommodated are taken care of by the academy for R35 000 each athlete for medical
aid, boarding etc.
4.2
Questions raised by the delegation
1 The criteria used to identify talent.
2 How is representation in terms of demography?
3 How is the involvement of USSASA?
4 What is the main recruitment motivation?
5 How are the boys mentored or monitored after leaving the academy?
4.3
Response
1. Boys go through trials. Parents are requested to sign contracts when the boys arrive in the
academy for three months trial period and if one fails the test are then sent home.
2. Coaches are now equipped with qualifications for certain levels for soccer and rugby that and
assemble groups of players and pick the best. Rugby is tested on six areas and need to reach
certain standards under the same three months trial period. When these boys from soccer and
rugby pass the test they choose schools of their own to study and are trained. Rugby is trying to
phase out players from other provinces and establish good quality from the province first.
3.
In terms of demography, there are two whites, 10 blacks and 14 coloureds from Eastern Cape
and Western Cape identified to set up standards.
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4. SAFA has three regions in the province and is represented from each region as well as
USSASA
5. Rugby is trying to assist athletes with potential and to sustain the project. The community also
played a big role by producing a document that was presented to Harmony Gold. Mamelodi
Sundowns and Orlando Pirates are interested in contributing to this project and the project is
open to everyone.
6. This academy is unique in the sense that the community and provincial government own it. The
provincial government has budgeted for five (5) satellite points for R20m each. The main focus
is to develop players from the academy instead of buying them from outside the province. The
academy has never thought about extending the contract after graduation and has never been
challenged by following up the boys. This will be looked into. The preferred age of intake is 15
years.
4.4 Meeting with USSASA
There were representatives from other regions in the province for USSASA. Southern Free State
chairperson noted that they work closer with Xhariep District and have monthly meetings, engaged
in mass participation and Love Life Games. 90% of schools are affiliated and they cater for most
codes from Under 9, 11, 13, LSEN and farms schools.
All codes in the Eastern Free State are affiliated to USSASA including former Model C schools.
Northern Free State has regions and structures with leagues for trials up to provincial. They are
working closely with each other. Chess tournament and Craven Week will be hosted in the
province.
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4.5 Presentation by SYRAC sub directorate
They presented on their strategic goals for 2005 – 2009 and strategic objectives. They touched on
school sport legislative policies and codes prioritized for 2005 as athletics; chess; cricket; cross
country; drummies; football; netball and rugby. Their priorities in terms of special schools for 2005
have mentally mild; intellectually severely impaired; physically disabled; sport for the deaf; sport
for visually impaired and neutrally handicapped.
Analysis on constraints and measures planned to overcome
1 Lack of appropriate facilities
2 Lack of equipment
3 Lack of appropriately trained educators and officials
4 Inadequate provisioning in terms of learner participation at national and international events.
4.6
Concerns raised by the delegation
The delegation sought clarity on the criteria for participating in USSASA and grants given to
professionals. The presenter mentioned 90% of schools affiliated to USSASA that raised a concern
about the 10%. The question was raised on the involvement of rural schools and whether model C
schools are still in existence and operating in isolation. More clarity was sought on physical education
in schools and whether USSASA was consulted during the planning by SYRAC.
4.7
Responses
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
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They noted that there is duplication between Education and USSASA but Department of
Education [DOE] implements policies.

Officials are given grants because they need to access skills. USSASA officials assist in
organizing national events.

Principals are forced to affiliate to USSASA by district manager in the northern part but not all
areas. All members in the province meet quarterly and plan on how to support educators and
learners. There are no model C schools.

Challenges experienced are rural schools playing in Bloemfontein and SYRAC is working on a
programme of reaching those that might not be reached by USSASA. They don’t have offices
specifically for USSASA but meet at schools.

LSEN have different disciplines that USSASA cannot cater for all the codes they play but
provide transport.

Accreditation is given to learners and educators e.g. diploma/trophies and parents appreciate
that.

USSASA don’t relate with the sport councils but promised to embark on a road show since
sport councils were established November 2004. It was mentioned that USSASA codes relates
indirectly with federations.

LSEN have equipment but no facilities and they have to pay.
The provincial directorate raised concerns on swimming for South West schools that have a pool that
is not used due to lack of funds which could also be used by the community. Some pools are
vandalized and used for church baptism and they requested the delegation to assist in advising what
could be the solution. Department of Education and academy are jointly planning to revive school
sport this year.
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Challenges
1 Facilities – need to take it to the municipality due to multicoded facilities available. This gives
problems and clashes with codes.
2 Lack of funds for transport to take children with potential from rural schools to towns.
5. DAY 3 - 02.02.05
5.1 Xhariep District Municipality – meeting with sport councils
Councilor Ms Dhlomo welcomed the delegation as the Chairperson of technical committee on sport
issues in the district. The municipal manager Ms Rampai briefed the delegation on challenges as
follows:

No facility manager and the district rely on officials and night shift security.

There is a dire need negotiating affordable amounts for tariffs since the area is poverty-stricken.

No proper programmes in place on capacitating of coaches.

The surface in the stadiums is not good for mass participation activities.

Schools cannot run in the ground due to its bad conditions in the Trompsburg area.

Xhariep is one of the far behind areas in development and without proper facilities.
The delegation proceeded to viewing a facility built by Building for Sport and Recreation Programme.
The facility was built for R4m and was completed in 2002 with four teams playing. There are
basketball, netball and tennis courts. They intend to have tuck shop in preparation for events. The turf
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is not in a proper standard. A private company promised to come and improve the situation and to also
supply water system due to the dryness of the areas. The purpose of the facility is to serve multi codes.
Challenges:

Grass track and maintenance is a concern.

After experiencing financial constraints the sport councils approached the Kopanong
Municipality for assistance.

Interaction of the community is on need basis.

Active codes are netball, tennis, soccer and volleyball.

Have a very clean swimming pool but running at a loss due to tariffs charges. Although the pool
is charged at R5.00 per person but people are unemployed so they cannot even afford to utilize
the pool to the maximum.

5.2
Local clubs cannot access the facility due to high tariffs.
Meeting with sport councils
Trompsburg sport council reported that they were established a year ago without proper administration
with the following challenges:

No training is provided.

Non-coordination of meeting to clarify the roles. Codes like netball, tennis, soccer and
volleyball have been developed but the difficulty is affiliation.

Local sport codes have been invited but responded negatively.
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Faurismith sport council noted that sport codes elapsed due to people elected who are not sport lovers.
Concern of maintenance of grounds was mentioned. The problem is with programmes from national
government that do not cascade down to local levels.
The delegation suggested that all sport councils should be capacitated so that they can operate on clear
guidelines. The delegation heard from mass participation coordinator that basketball courts are used
but cannot access more for handball or soccer. The provincial government needs to negotiate with
local government for halls and facilities. Challenge of equipment is referred to province to look at the
tenders.
6.
DAY 4 - 03.02.2005
6.1
Meeting at Free State Sports Science Institute [FSSI]
The delegation met with Mr. Evert Venter, the director of sport and recreation in the province and Mr.
Jerry Segwaba, CEO of the institute gave background about the institute that started in 2000. The task
team was appointed by the MEC to find facts from Australia for three weeks just before the start of the
Olympics. After the exciting fact finding mission experience the team drafted a report on the following
points:
(i)
Focus on coach capacitating
(ii)
Possibility of having high performance center in the province
(iii)
Partnership with science and technology. They were assisted by Department of Sport and
Recreation [DSR] through Building for Sport Programme and contributed R3m for building
the institute. The teams who went to the Olympics also utilized the equipment in the institute.
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(iv)
PAGE: 494 of 644
One of the goals is to be able to have more players representing the country and more qualified
coaches focusing on athletes.
(v)
100 teachers are registered recently to become qualified coaches. From the five districts in the
province 20 teachers are identified.
(vi)
The uniqueness of this institute is that High Performance Centre (HPC) is initiative of the
government not private company.
Evert presented on the new structure with plans to employ sub directorate to focus on mass
participation and community development from 1st April 2005. Positions will be advertised. FSSI
focuses on athlete development. There is an investigating team researching on how to link community
sport and sport confederations. There are four main programmes that the institute has, to support
athletes with injuries, nutrition etc and capacity building for coaches and high performance.
The institution is drafting a contract with SANDF to assist on medical issues and exercise in return
FSSI will support SANDF on development. R5m is available for development. Central University of
Technology (CUT) gives certification and accreditation. A new programme is established for
developing programme on federations and supports them with office space. The High Performance
Centre [HPC] has four main focus areas, namely:
(a) Sport and exercise science: this function will focus on isokinetic; biomeachnis; cardio vascular
and exercise synchronization.
(b) Sport and exercise nutrition: focusing on the prescription of basic nutritional programmes as
well as the synchronization exercise programmes with nutritional intake according to physical
condition and genetic profile.
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(c) Sport and exercise psychology: will focus on individual as well as group intervention with
regards to psychological aspect such as motivation, teambuilding, focus, concentration etc.
(d) Coaching development will be focusing on basic coaching development within communities
and high performance coaching, training and support.
Tour on camera in the institute:
The delegation took a tour within the institute and discovered how advanced FSSI technology
works:

Invest on training the trainer on how to deal with an athlete. When the athlete runs the test,
the machine will show on how the athlete performs and the doctor could be able to
determine the problem.

The test must determine why the athlete and the coach fail or don’t perform effectively.

Coaches should be trained on knowing which athlete to select and why. The athlete should
be trained specifically on genetic profile.
Professor Brussow presented on rationale for the exercise nutrition focusing on :
(a) Comparison between SA and Australian models. Australia looks for coaches with skills and
empowers them on how the body functions, i.e. nature science.
(b) What can SA do better than Australia? SA needs to develop skills.
(c) Product – need to embark on innovativeness and on a demand driven approach i.e. to change
the scoreboard by stop talking and more action.
(d) Factors rendering physiological variables render nutrients that drive strengths or power energy.
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Mr. Jan du Toit informed the delegation that all schools in the province will be tested and two teachers
from each school will be trained to test kids. A database of the test results will be kept. Talent
identification will be done in every municipality with attendance of federations. There will be random
mini competitions where coaches would be able to scout talent. During district competitions
municipalities will play against each other and also interprovincial academies. Mr. Du Toit promised
that testing amount has been reduced from R150 to R40 in order to accommodate the poor.
6.2
Questions to Prof Brussouw:
1 Is there any proven information whether the testing is good?
2 Do the big clubs make use of the institute?
6.3
Response
Australia spent R124 million a year for eight years on high performance programmes but never
improved the situation but when they started coaching the coaches is then that they improved within
three years. Neethling, the swimmer is one of the athletes who were tested in Free State. Professor
requested that the delegation insist that the intellectual property must belong to FSSI, i.e. the
equipment etc. and also challenged the delegation to speak to Brian van Rooyen to bring 22 Black
rugby players to be trained in the FSSI and he promised that those players could prove to be the best
Springbok players.
Mr. Komphela suggested that Professor should look at the need to link sport life skills to education
curriculum. He further urged FSSI to protect the facility and make it accessible to all and it should first
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serve the five districts in the province fairly, justly and equally. That does not mean they must not
assist in coaching the neighbouring countries. Mr. Segwaba also mentioned that the province would
love to establish coach academy owned by the government.
The delegation was impressed with the information but wanted to know about certainty or the
correctness of the testing? Another concern was about having facilities for disabled people within the
institute.
6.4
Presentation on training and research at FSSI by Prof Johan du Plooy
Professor Du Plooy is the manager of the Center for Sport Training and Research in the Free State
Sport Institute. He gave purpose for the existence of the center as development and presentation of
accredited formal and informal sport related qualifications. The functional structure is in partnership
with Central University of Technology (CUT), Free State for registration and accreditation; Belgium
and Free State government. Free State is in the process of having the center under Further Education
and Training (FET) for accreditation. Research division focuses on applied as well as community
based research projects.
Background of the center.
The Department of Education has awarded 100 teachers with bursaries from 5 district municipalities
with intake of 20 teachers from each district. On training, short courses are offered and linked with
skills development and leanership strategies of government within the field of sport development. The
formal SAQA or approved qualifications focus on under qualified teachers for upgrading from M+3 to
M+4. Informal skills link up with skills development and learnership strategies of government.
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Participants will earn educational credits for attending these short courses. After meeting two basic
requirements (i) the earning of a minimum of 120 educational credits and (b) enrolling for a complete
assessment, participants can then receive 1 or 2 year THETA accredited certificate or diploma within
the field of sport development, coaching or sport management issued by the institute.
List of courses offered are sport psychology; sport nutrition; management; team management; fitness
training, exercise and nutrition, exercise rehabilitation, life skills and many more.
Research division
The MEC requested the following projects:
-
Barriers to sport and recreation participation in selected African and Coloured communities for
the purpose of establishing club sport structures for school as well as community participation.
-
An effective support or communication system for sport and recreation in the Free State
-
Look at volunteerism and especially participation in sport and recreation. Federations are
approached when conducting courses to find out about what their needs are.
6.5
Concerns/question from the delegation
The delegation wanted to know about students interested in sport but could not be in the university
whether they are also accommodated. The concern was about how students without bursaries were
catered. Some intensive explanation about South African Qualification Association [SAQA] and
Tourism, Hospitality and Sport Education and Training Authority [THETA] was requested.
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6.6
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Responses
South African Qualifications Authority [SAQA] - all courses must be registered with the Department
of Education, approved and accredited. Sector Education and Training Authority [SETA] is informal
training sectors. Tourism, Hospitality and Sport Education and Training Authority [THETA] is linked
with the Department of Labour. The provision is made for students with Matric only. Also courses on
turf maintenance will be conducted. Free State Institute is the brainchild of the Free State government.
Research was conducted which resulted at the findings of the needs of the community in the province
about the lack of qualified teachers. People with potential but unqualified were given informal short
courses and informal training is not tertiary accredited by THETA and SETA. THETA is experiencing
problems to take off the ground due to many controlling measures that makes it impossible to perform
effectively.
6.7
Meeting with sport codes with their challenges
Basketball
 Lack of facilities
 Netball needs capacity building and transport to reach places where they want to play.
Soccer
 There is no assistance from national SAFA as far as coaching but have decided to invite Danny
Jordaan to brief them on guidelines and current affairs about the 2010 World Cup.
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
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There are development programmes for coaches and referees. A grant per year has been
received including transport and other logistics.

The province accommodates people from other regions and need to transport them to attend
workshops, etc.

Need to look at women teams.
Rugby
 Have development programmes
 Coca-cola Under 18 will focus on upgrading facilities in the township. Cheetahs have leased their
facility for 99 years at R1.00. Rugby has good relationship with municipality and rugby union.
Squash

Need a facility to play and there is none in the area.

A tournament will be held soon and would be introducing the game for marketing.
Endurance walking

The main aim of endurance walking is to take care of people who are not physically fit. It
works in teams and one would walk for 75 kilometers. The races that take place are
internationally recognized.

The team does not get support from anyone and need transport and accommodation when they
play or visit other provinces. Western Cape province sponsors their teams.

Each province has its own union. Entry fees are expensive.
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Hockey
There are developed programmes and for three years progress has been made but there is still lack of
facilities. People have to be transported to town. Sustainability is a challenge. Some provincial
structures don’t have office space and equipment e.g. faxes, computers etc.
6.8
Meeting with sport codes in Kroonstad
The leader of the delegation informed the people that the objective of visiting Kroonstad was to view
the stadium that is going to be revamped in the area. He also informed all present about the vision the
Committee has for sport in the country.
Challenges and concerns from the sport councils

White clubs lease swimming pools and halls and there is no access.

When municipalities wanted to use facilities built before 1994 individual white owners could
not agree instead they demolished those facilities. The sport councils wanted to find out
whether this present government is going to rebuild those facilities.

There was a request that S A Games be named after O R Tambo permanently to acknowledge
the legacy he left behind in this country.

There is a problem with bodybuilding that is not interacting with other federations but want to
be on their own.
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
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They recommended a mind shift from playing only to win but to also look building healthy
nation. If they only focus performance related only but forget about health that will mean few
will survive looking at the present diseases.
6.9
Response from the delegation
From concerns raised by the groups, the delegation responded by informing them that Seisoville
stadium will be upgraded by national government but leased facilities are not government
responsibilities. The delegation also wanted to know the relationship between sport councils and local
councils and whether sport council is established.
Sport council concerns:

The relationship is very good. Councils that are elected lack expertise and they don't even know
sport let alone being keen.

Mayor and councilors leave sport in the hands of the few whites that lease the halls and facilities
and community end up having no access.

Lack of facilities. Letters were written to municipality for assistance but no success. They met
with officials in the municipality but were sent from pillar to post and later were sent to a junior
white officer who promised to release the stadium on condition that they were going to share
since it is a leased facility.

Lack of finances and is difficult to access councilors for assistance.
The question of affiliation of schools to USSASA was raised and problems encountered by affiliation.
The response was that there is a lack of facilities and finances and they have nowhere to practice. They
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requested to be more informed on how Lottery operates. USSASA has programmes and affiliation fee
is R200 per school. The Chairperson of USSASA explained that schools affiliate and some codes
affiliate to federations. They are allowed to use SAFA facilities.
The Department of Public Works was approached to clean school grounds and charged R12 000.
Regional affiliation to the clubs is R150.00 and when schools win in the area in order to play in the
region they have to pay for themselves. There is a dire need for redirection of life skills.
The delegation commended the efforts made by few in the area to bring sport to the people and also
thanked them for their patience as they waited for hours for the delegation.
6.10
Key Findings
 The provincial government foresees problems with the transfer of Building for Sport and Recreation
Programme [BSRP] to Municipal Infrastructure Grant [MIG] and also suggested ring fencing of
sport funds. The Charles Mopedi stadium is in a good location but need to be marketed very well.
Employment of facility managers will eliminate destruction and theft. No physically challenged
people involved in programmes or planning sessions either in the municipality or in the department.
 Golf accessibility by community is very minimal if there is at all and is not introduced or promoted
amongst Black community. Lack of indoor facilities.
 Lack of national sport plan.
 District council in Xhariep could not provide the delegation with sport programmes.
 When municipalities wanted to use facilities built before 1994 individual white owners could not
agree instead they demolished those facilities in Kroonstad.
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 Employment of non-dedicated sport people is an outcry from the whole province. People leading
sport are not showing any passion or knowledge of sport.
The delegation finished its business in the Free State and proceeded to the North West.
VISIT TO NORTH WEST PROVINCE
7.
DAY 6 - 07.02.2005
7.1 MEETING WITH THE MEC - NORTH WEST PROVINCE - NIKIWE NUM
The MEC welcomed the delegation and thanked them for the visit that she described as information
sharing and that would assist. She requested the MPLs to engage with the national committee
vigorously in order to find each other at the same wavelength of understanding issues of sport. Mr.
Komphela presented the objectives of the visit. Ms Num gave a broad overview of the department
achievements and challenges. She mentioned that the department is newly established as a stand alone
including arts and culture hence it has been a stepchild under social services. The MEC highlighted
that the department is still establishing its directorate and still need to capacitate staff.
Background information
The North West province has a population of about 3.7 million and is eighty percent (80%) rural. Sport
in the province, like any where in the country, is popular to the majority of the communities, be it in
organized or unorganized format. The province is an integration of two components viz, the former
Western Transvaal and the Bophutatswana regimes, with areas from the latter regime having no focus
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approach to issues of sports, though they were able to put infrastructures in some of the areas.
Integration into unified democratic structures had to implement the unification process that unfolded
throughout the country prior to the new dispensation. She stressed that the province managed to make
a difference even though a lot still need to be achieved. The approach highlighted is the need for
partnerships and integrated approach in the delivery of sport and recreation services. Based on that, the
department developed intervention strategies that are aimed at ensuring that the federations, local
municipalities, academy of sport, PROREC, sport councils and communities are to link their
programmes so as to maximize the output of sport and recreation delivery.
The province is demarcated into four districts, the fifth being the Kgalagadi as a cross border and one
of the President's nodal area. The major challenge identified is lack of visibility and impact by sport
federations as custodians of development due to the expertise within their ranks, in most parts of the
province, especially rural areas. They only prioritized 10 federations but only cricket and rugby is
performing well, the others are experiencing lack of management skills. Districts in the province are
not equally functioning but suggested that decentralization will be the solution. Large amounts are
suggested to go to previously disadvantaged groups. There is one academy and four satellites. There
have been challenges when it comes to academies due to lack of coordination and the department don’t
monitor or support the academies.
PROREC
They are expected to form clubs at local levels e.g. elders having walks, aerobics etc. Some are doing
mountain climbing and recreational facilities are available. The province has established political and
technical committee to prepare for the hosting of 2010 World Cup. The provincial Chairperson for
Standing Committee on Sport and Recreation sits on that committee with 2 mayors in the district.
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National SAFA is invited to come and present to the Standing Committee on guidelines, expectations
and more information on the preparations. R1m is available for research purposes and expertise that
could be required to proceed with the preparations. Some sport material has been stolen and found in
the houses of the officials and the matter is being investigated.
The province has a backlog in terms of facilities. There are 345 wards with only 43 sport facilities.
R10m has been received from Building for Sport Programme to cater for 10 facilities and don’t receive
funding from the province for infrastructure grant. Moral regeneration is under the premier's office and
gives the department little to say or do even if there are issues of racism that need to be addressed.
Strategic plans will be finalized end of February with capacitating of management as priority. Five
sport codes are put aside to deal with them vigorously. There is a need for at least one PSL team
coming from the province to affiliate nationally. The national Committee was urged to assist in
advising on how to increase the budget.
School sport
There is no coordinated programme between the department responsible for sport and school sport.
This has lead to the sectors competing for the same clients, participants of school going age, who are
by the way community members affiliated to community clubs. The department is of the view that
Wednesday school sport should be considered as a programme that will enhance the development of
sport since pupils will be able to engage in the community clubs over the weekend.
Mass participation
The programme is a national pilot project that has its positive outcomes and allows for improvisation
with regard to the format of activities. It also serves to afford coordinators an opportunity of gaining on
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job administration training and leadership qualities. The hub system seems to be creating some
dissatisfaction within the communities in the province in the sense that focus is given to specific areas
due to the levels of social ills confronting particular areas. The concerns by other youth in the areas
where they are residing are that they are equally affected by the same social ills.
The provincial acting head of department presented to the delegation on various issues. He touched on
the programmes like building for sport and greenifying where 13 facilities got boreholes and three
areas were electrified. Thirty-seven (37) coordinators were employed and training was given. Codes
which were implemented under mass participation include disability participants; aerobics; general
gymnastics; big walks and fun run; indigenous games; basketball, handball and street soccer.
Challenges

No provision for blind people in terms of training material. Those people needed brails for
reading the manuals.

The administrative team that leads to struggling when capturing information.

No coordination or integration of various departments as far as municipality programmes are
concerned especially during mayoral games.

For satellite academies there is no service level agreement in place. There is a need for greater
integration during implementation of all programmes between academies, districts, local
municipality and departmental officials and clear role clarifications and responsibilities for all
stakeholders.

Lack of national legislation that governs coordination, implementation as well as equity and
transformation.
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
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No existing role clarification and responsibilities of various role players outlined in provincial
legislation for sport and recreation.

Sport councils lack clear direction, mandates, role and responsibilities that results in lack of
integration between sport councils with regard to planning and compilation of programmes

Lack of database containing sport needs at local level resulting in no support at all given to
local sport councils.
Mr. Mogajane noted that national department of sport consulted with all provinces to speak on same
strategic goals, which he gave satisfactory details to the delegation.
7.2 Questions for clarity

Where is school sport in the province?

Are all wards covered in the activities?

Lack of facilities - has that improved?

What role USSASA plays?

Challenges on electronic equipment - are they available?

Have rural areas been covered?

Why are other sports codes not monitored?

Can't S A Games be named as O R Tambo Games?

What criterion is used to select people with potential?

Are there swimming pools available in the area?
7.3
Responses and more clarity
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PAGE: 509 of 644

National direction is that school sport is still on debate and has not received final decision.

Municipality plans together with the department. The facility in Mafikeng is dilapidating due to
lack of programme implementation. In Taung four facilities will be upgraded in the next
financial year.

USSASA's role is difficult to understand because their roles and guidelines have no detailed
report received but experience duplication of programmes that need to be clarified by national
department.

Some electronic equipment cannot be purchased because it is too expensive.

MEC informed the delegation that discussion on the role of USSASA whether is needed or not
has been done. Bilateral discussion with Education is that sport need to be taken by the
department of sport. She further explained that according to Memorandum of Understanding
signed is that sport activities are for sport department and physical education remains with the
Department of Education. She suggested that provinces have to come back with their
approaches to look at how to take the agreement further.

There is lack of resources especially at municipality level but Mafikeng mayor made
commitment to put aside maintenance budget for sport facilities and there is improvement in
the municipality.

The provincial Chair commented that he has a problem with gymnasium due to its cost, which
would create a problem in the form of funding.

S A Games is driven by national government so the change of name could be negotiated. O R
Tambo games are ANC driven games. S A Games was just a platform for talent identification.

Management of other sport codes lack skills from their administrators, they cannot even draw
budgets, business plans etc. The building of gymnastrada is the yielding of competition in the
World to represent SA and is expensive. The department is not looking at nutrition exclusively
but academy is looking at that specifically.
23 AUGUST 2005

PAGE: 510 of 644
Former teachers who contributed in sport with qualification of classroom oriented were
identified as those with potential but would need training for sport management.

The province as a whole experiences high level of lack of water but the province is looking at
building a swimming pool in Mafikeng, in urban area due to high cost of maintenance and
construction. There are only two pools in Potchefstroom and no public pools in the province.
The provincial government has a duty to teach and expose youth to learn to swim following
instances of high level of drowning. The department will engage with the province on that
issue.

As far as academy is concerned there is dual understanding between government and
universities. The academy is far from the MEC's office and she cannot account for and is not
centrally based.

The department will determine whether Openheimer is included to municipality or not.

Lottery has provided funds for a number of communities and also equipment for the academy.
Mr. Komphela appreciated the report and presentations from the department and the positive input
from the honourable MEC. He further commended the 270 temporary jobs created by the department
during construction of facilities. He alerted them not to be ambitious but look at the capacity that
municipality could give before building a big stadium.
7.4
Presentation by Mr. Mosiapoa - the director for sport and recreation on programmes.
Other programmes the province has are those that involve old age homes. SASC requested the
province to host Indigenous Games as the current champions. He introduced a concept on league
system prepared by the department to improve on the relationship with federations and to develop
sport. He gave a brief background of the status of sport and noted that aligned coordination of sport
23 AUGUST 2005
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programmes and calendar of events remain unrealized by stakeholders eg, department, federations,
school sport and municipalities resulting in duplication of resources. The concept is to address mass
participation but not to loose sight of development. The department is also concerned about exhausted
budget due to once off activities caused by non-integrated approach to provision of services. This
resulted in potential talent not being identified.
Staff is to be employed to service municipalities in their areas. Nine sport federations are priority
codes in the North West academy of sport. The model will be played at local municipality level by
codes like cricket, football, netball, rugby and tennis but cricket and rugby will be at district level. All
local municipalities will constitute men and women football league including boys Under 14 league.
The format will look at teams that are more than 40 where two streams will be played and winners will
play against each other to determine a local municipality winner. This will also prevail where there are
local SAFA structures in place and the non-affiliated teams will form a second stream. Netball leagues
will be constituted at each local municipality and will be affiliated to provincial structures with
intensive capacity building programmes for umpires and administrators.
Cricket clinics and development programmes should be rolled out at local municipalities where local
teams will be playing district league. Rugby clubs will be established and be prioritized to ensure pool
of participants. The introduction of rugby in communities will be lead by rugby union development
officers. As well as tennis clinics will be rolled out in all communities in collaboration with provincial
structure. The province is currently auditing existing facilities in order to determine those that need
upgrading. Sport councils should also monitor department programmes in order to give advices. He
urged the national chair to ensure that sport is covered by SABC especially during the handing over of
facilities and provincial games. Federations are unfortunately not servicing Bophirima district.
Federations need to be demarcated according to political demarcations.
23 AUGUST 2005
7.5
PAGE: 512 of 644
Concerns and clarifications
The delegation sought clarity about former white model C schools whether they are playing against
each other or integrated within the province. They advised the department to educate sport councils on
their role.
7.6
Response
The department has targeted Bophirima as a point of entry since it is mostly poverty stricken. The
criteria for the formation of sport council is to write to all stakeholders in the area be it church, school
etc. They have met with the former players to encourage youngsters on enthusiasm and they agreed
unless they are part of the plan or programme and they want to work with coordinated structures.
Complaints have been received from North West School Sport Association [NOWESSA] and it’s
difficult to reach the balance of programmes.
8.
8.1
DAY 7 - 08.02.2005
Meeting at Vryburgh District Municipality with district municipalities and sport
councils
The executive mayor extended a word of warm welcome to all present. He highlighted the fact that the
district is rural and youth staying in the area are unfortunate because of that reason. He further noted
that other district executive mayors from southern, northern and Bojanala were invited to share their
challenges and achievements. Ms Num welcomed all visitors. Mr. Komphela outlined the objectives of
23 AUGUST 2005
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the visit by the national Portfolio Committee on Sport and Recreation. All mayors presented on their
programmes related to sport activities in their district municipalities.
Mr. Mohulatsi presented on behalf of Central District as the councilor. He informed the delegation that
the community itself prioritises sport as last priority due to lack of youth attending meetings. The
municipality has not budgeted for sport facilities. After being addressed by the MEC and national
Chairperson he confessed to change and look at sport as the first priority to overcome crime, prevent
teenage pregnancy etc. He mentioned the building of multipurpose centers for the youth and launch
district sport councils. He promised to begin to do things correctly and engage youth vigorously.
Questions for clarity

Who services areas within the district if not budgeted for sport?

What is happening with federations, eg. Rugby not being transformed? What is the
relationship? He was asked to give complete picture of the district as how many municipalities
in the district with what teams or clubs associated with?

How many officials have gone on training to keep youth from the streets? How many qualified
as recreational officers?

How is the district assisting sport councils?

To what extent is THETA assisting the district in workshops and capacity building? What is
the state of boxing?
Response
23 AUGUST 2005
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Their weakness is that not much has been done for transformation. Leased facilities are also big
challenges for not being accessible although activities are taking place. Sport councils have been given
responsibility to submit their needs. The area is not doing well at all for boxing.There are areas that
have not been touched or done well and he acknowledged the information and interaction of the
meeting. He has begun to visit association and giving skills to youth.
8.2
Councillor Ms Tema presented on behalf of Bojanala District
Municipality
Progress:

Sport council was launched in February 2004 and not provided with accommodation yet.

In 2003 the budget was R200 000 and only spent R149 000 by end June 2004. The district does
administrative work.

During 2004/05 the budget was R550 000. Infrastructure budget is R3m for 2004/05 for
upgrading sport facilities, greenyifying a total of 4 projects.

Local communities committed themselves to be responsible for maintenance. District and local
municipality with other stakeholders have established 2010 committee for preparations.
Challenges:

There are no clear guidelines on school sport and is not linked to the district programmes.

There is no fixed calendar of events existing.

Sport academies are not registered and people are employed on temporary basis.
23 AUGUST 2005

PAGE: 515 of 644
The province has managed to establish two satellite sport academies and will continue to make a
difference. Impala Rugby Club already established Rustenburg rugby. Olympia Park Stadium
has been budgeted R3m for upgrading. Sport projects are running well. The district is taking
sport seriously.
Questions for clarity

What plans are there around sport facilities owned by individuals?

How are competitions run?

Could you share with the delegation on how satellites were started in order to equip other
municipalities who have not there yet.

What provision is made for people working in the mines?
Response

In the case of transformation, Impala rugby participates in both Black and White. A kombi has
been bought to transport them. All junior athletes are participating in all races. Cricket
development e.g. Rustenburg Club is playing.

Academies - district councils contributes in development. There are federations within the
academy. There are integrated programmes with sport councils, municipality and academy.

Madibeng has a 99-year lease. Rustenburg has golf course that is leased for 99 years as well at
R3.00 per annum. Only legislation can change that situation.

The department responded and noted that sport councils were established and were given
mandate to draft constitution. Last year February sport council was launched and currently no
report has been received.
23 AUGUST 2005
8.3
PAGE: 516 of 644
Presentation by Bojanala Councilor Mr. Dikoko
He informed the delegation that:

The province as a whole has 327 wards and serving 3,4 million people.

The district qualifies in all objectives given due to the fact that it is urban.

All sporting codes are well covered with facilities but there are still areas that are not being in
good state. Facility is given to where majority resides and maintenance is the main challenge
that need intensive discussion.

Klerksdorp has its own sport council and sport committees are doing well.

R2m has been given to build a swimming pool in Klerksdorp to avoid accidents happening
from crossing the railway line to reach to available swimming pool across the railway line. This
crossing has caused lot of accidents and loss of lives.

Lottery has provided about R4,5m.

Transformation is still a big challenge if you look at two big games playing at the same day,
same time e.g. Bafana Bafana and Cricket which make people choose which one to support.

Klerksdorp and Potchefstroom bid for 2010 stadium but Openheimer has been identified as the
one to host the games.
Concerns and questions raised

From different views of transformation, are clubs in the area playing against each other as
mixed or just Black and White playing separately?

How is the district dealing with federations e.g. link team processes?

How is sport budgeted in the municipality?

When will transformation take place?
23 AUGUST 2005

PAGE: 517 of 644
Why sport councils are not established if not present in the area? What is the relationship
between sport councils and the district municipality?
Responses and answers
Sport academy goes to sport councils for needs and programmes in 63 wards. The mining industry
clubs are playing as mixed. After establishment of academy, sport council was established in
Potchefstroom. Klerksdorp got R2m last financial year and R2,5m this current year. The sport
councils responded as well that Blacks are only playing volleyball and netball due racial issues.
Satellite academy has been conducting life skills programmes. White people are not part of sport
council in the area because they have their own programmes.
8.4
Presentation of Bophirima District by Councilor Mr. G K M Lobelo
He reported on sport and recreation infrastructure development and community participation as
follows:

That the district believes that sport is important in building unity in South Africa.

Sport and Recreation development should be based on the overall development and
participation of the community at large

Sport development should be pursued in partnership with all spheres of government,
federations, NGOs and communities.

Sport facilities should be made accessible to all residents.
Their roles as municipalities in the district presently are:
23 AUGUST 2005
PAGE: 518 of 644

Availing facilities that they administer to communities

Organizing tournaments for schools ad local clubs

Encouraging youth to participate in sport

Lobbying of major teams to visit the areas. He also mentioned available sport facilities
administered by the district and those that are closed. In the case of accessibility, the private
owned have limited access with huge amounts for bookings; the school owned have unlimited
access while the municipal owned also have unlimited access with minimal amounts for
bookings.

The comparison on school facilities is that ex-model C schools have greenified pitches, high
mast light; athletics track, ablution facilities, pavilion and change rooms while rural and
township schools pitches were not greenified no lights, no athletic tracks, use of school
ablution if available, no pavilion and use classrooms as change rooms.

Local sport councils are established in all municipalities but due to the vastness of the area it is
difficult for them to meet.

Facilities are included in the original IDPs of local municipalities. The national department
funded Taung for R3 million; Ganyesa fro R1 712 000; Bray for R1 500 000 and Morokweng
for R800 000. He noted that some municipalities budget for maintenance.

Sport Academy exists but its impact is not felt in other areas.

SAFA structures are non-existent and no federation in place. Nothing has been done with
regard to people with disability.
Challenges:

Lack of capacity building with regard to coaching and general administration of sport.

Shortage of funds to realize IDP plans
23 AUGUST 2005

White sport versus Black sport

Development of facilities in private hands

Lack of functional structures.
PAGE: 519 of 644
The district has some solutions suggested on their challenges such as:

Need for a close cooperation between the municipalities, provincial and national offices.

Placement of human resource at each municipality

Employment of people knowledgeable about sport

Increase participation of provincial department during the IDP reviews

Extra funding

Implementation of MEC’s plan of sports coordinators in the wards.

More focus on Bophirima District

Rural schools to be assisted with cleaning of school grounds.

Improvement on the functioning of sport councils, sports academy and other structures

Establishment of federations

Need for good and consistent planning

Programmes of scientific/medical support for sportspersons need to be accessible to rural
people.
Questions

Is there a league between the Blacks vs White sport?

What is close ooperation/coordination between municipality and provincial now?

What is the plan and time frame for DISSA and participation of women?
23 AUGUST 2005

PAGE: 520 of 644
What has been done to capacitate sport councils?
Answers
Black vs White sport, some codes are still referred as white sport such as rugby. NOWESSA exists but
some schools still have their own matches. Cooperation - sub committee was established to deal with
sport only to have a proper structure. Teams are leaving the province because they are not getting any
support either financially or otherwise.
8.5 The municipal manager of Naledi raised several concerns as follows:
1. How to deal with 99 year leases and transfers.
2. Urgent appointment of sport officers is required but they must be dedicated to assist
municipalities in training and coaching.
3. Strengthening of the current weak structures
4. Wider impact of sport academy needs to be felt.
5. Need funding for federations to achieve their goals and capacity building across the board.
6. Sport councils need to interrogate their role to have impact not just having structures.
7. Need to deal with the issues of transformation, infrastructure for BSRP and need to create
facilities catered for disability for sport because none has been done.
8. Interest on 2010 is to get clubs to train with capacity of 50 000 seats and sport grounds to be
open to all races.
8.6
Sport Councils presentation
23 AUGUST 2005
PAGE: 521 of 644
Concerns raised:

No support from the department and other stakeholders and wished that a good relationship
between them and the department could be strengthened.

Lack of coordination. There are no offices to operate from.

Nothing has been done to rural areas. Cricket and other federations are not visible in rural
areas.

Federations can be tools to unite people.

Budget has been submitted to the department.

Ineffectiveness of sport councils should be judged on terms of reference given during
establishment.

The work plans from local to district municipality are not integrated but done differently. All
the structures are invited in General Assembly. They requested that relevant people should be
identified to lead sport.
9.
DAY 8 - 09.02.2005
The delegation met at the grounds where mass participation games took place with the MEC,
department officials and the community led by activity coordinators. Elders had aerobics and
gymnastics. The honourable Mayoress of Vryburgh Ms Ruth Mompati joined the activities. Youth had
aerobics, basketball, indigenous games and other activities including disabled youth who were very
active. The delegation spent the day in the games. The Chairperson thanked the old people for their
dedication to keep themselves healthy with the games and encouraged the youth to keep themselves
active in playing games and involved in community activities rather than engaged in crime and drugs.
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10. KEY FINDINGS

Lack of national legislation that governs coordination, implementation as well as equity and
transformation.

No existing role clarification and responsibilities of various role players outlined in provincial
legislation for sport and recreation.

Sport councils lack clear direction, mandates, role and responsibilities that results in lack of
integration between sport councils with regard to planning and compilation of programmes

Lack of database containing sport needs at local level resulting in no support at all given to
local sport councils.

No provision for DISSA blind people in terms of training material, e.g Brailles.

No laptops for administrative teams for capturing information

Montsiwa facility was handed over to the municipality but presently is dilapidated and
equipment is stolen.
11.
RECOMMENDATIONS
The Committee therefore recommends that:

Stanza Bopape and Maluti A Phofung recreational activities be encouraged and be replicated to
other provinces.

Prioritization of sport codes should be biased to the disadvantaged and popularize most played
codes in each province.

National department must assume responsibility that rural areas especially poverty stricken
areas are provided with resources.
23 AUGUST 2005

PAGE: 523 of 644
There is a need to interact with the Minister and PC on Mineral and Energy and owners of
mines to discuss Memorandum of Understanding on existing facilities in the mines so that sport
and recreation does not have to build more facilities. To discuss issues of what could be put in
place in order to rekindle life and social responsibility caused by closure of mines.

Free State Science Institute must be kept running and government must resource it hence it is
the only one owned by provincial government. Other provinces should be encouraged to copy
from Free State. The national Minister, Rev Stofile and MECs must create Free State Institute to
be the best.

South African Defence Force in Bloemfontein has good resources and sport institute should be
collaborated. SANDF and Sport Minister should discuss a matter of opening up those facilities
owned by SANDF to the community for use.

Due to minimal amount paid by the teams a request was made for training of teams e.g.
Springbok Black players.

Intervention of government to the leased facilities is imperative in order to access them for mass
participation. Legislation should be in place to rule off the leases.

Department of Provincial and Local Government together with Sport and Recreation South
Africa in the advent of the new dispensation of Municipal Infrastructure Grant that a special
reservation be made for building basic facilities. MIG must be able to tell how many facilities
are built in the country and the funds meant for building must be ring fenced and prioritize sport
in their IDPs. Facilities in small municipalities without capacity and base of revenue be assisted
by Sport and Recreation in maintaining those facilities until they are able to build up their
revenue base.

Facilities should be handled Cuban way and this need to be discussed vigorously on how
radically can it be formulated.

SRSA should have a national plan to enhance the division of putting up facilities
23 AUGUST 2005
PAGE: 524 of 644
to the needs and challenges of mass participation.

A programme of integration of White versus Black schools should be looked at to build nonracial sport to avoid Model C schools playing each other. A programme that binds all schools to
play each other should be in place to build the nation.

Other municipalities should be encouraged to copy from Bophirima Municipality on allocation
of funds and human resource capacity building.

There is lack of national legislation that governs coordination, implementation as well as equity
and transformation in sport.

Sport councils lack clear direction, mandates, role and responsibilities that results in lack of
integration between sport councils with regard to planning and compilation of programmes

There is lack of transport for disabled persons as well as capacity building and a programme
that addresses women sport by Sport and Recreation South Africa be designed. .
Report to be considered.
TUESDAY, 16 AUGUST 2005
TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
23 AUGUST 2005
PAGE: 525 of 644
(a) Report on Information and Update Workshop for Pan-African Parliament
Standing Committee on Cooperation, International Relations and Conflict
Resolution, 1-2 April 2005.
PLEASE INSERT REPORT (FROM PAGE 1598 - 1612
2.
The Minister of Finance
(a)
Agreement between the Government of the Republic of South Africa and the
Government of the Republic of Malaysia for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with respect to Taxes on
Income, tabled in terms of section 231(2) of the Constitution, 1996.
(b)
Explanatory Memorandum on the Double Taxation Convention between the
Government of the Republic of South Africa and the Government of the
Republic of Malaysia.
Proclamation No R.32 published in Government Gazette No 27766 dated 8 July 2005: Appointment
and Re-appointment of members of the Tax Courts in terms of the Income Tax Act, 1962 (Act No 53
of 1962).
23 AUGUST 2005
PAGE: 526 of 644
FRIDAY, 19 AUGUST 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1.
Assent by President in respect of Bills
(1)
Co-operatives Bill [B 4B – 2005] – Act No 14 of 2005 (assented to and signed by
President on 14 August 2005).
2.
Classification of Bills by Joint Tagging Mechanism
(1)
The Joint Tagging Mechanism (JTM) on 17 August 2005 in terms of Joint Rule 160(3),
classified the following Bill as a section 75 Bill:
(i)
Constitutional Matters Amendment Bill [B 22 – 2005] (National Assembly – sec
75).
(2)
The Joint Tagging Mechanism (JTM) on 17 August 2005 in terms of Joint Rule 160(4),
classified the following Bill as a section 76 Bill:
(i)
TABLINGS
Education Laws Amendment Bill [B 23 – 2005] (National Assembly – sec 76).
23 AUGUST 2005
PAGE: 527 of 644
National Assembly and National Council of Provinces:
2. The Speaker and the Chairperson
(a) General Report of the Auditor-General on the Audit Outcomes of Local Government for the
financial year ended 30 June 2004 [RP 73-2005].
(b) Report of the South African Delegation to the Third Ordinary Session of the Pan-African
Parliament, 29 March – 11 April 2005, held at Gallagher Estates, Midrand:
Executive Summary
Section A
1.
Background
The report outlines the proceedings of the third ordinary session of the Pan-African Parliament, which
took place between 29 March 2005 and 11 April 2005.
The third ordinary session of the Pan-African Parliament (PAP) was marked by the opening address by
President Gertrude Mongella, and solidarity speeches by Speakers of various National Parliaments
including the Hon Ms B Mbete, Speaker of the Parliament of South Africa.
The Hon Speaker of the National Assembly of Uganda spoke for all speakers on the continent, while
the Speaker of the Parliament of South Africa spoke in her capacity as the leader of the delegation of
23 AUGUST 2005
the host country.
PAGE: 528 of 644
Both Speakers noted the successes of both the Pan-African Parliament as an
institution, and the importance of the institution in uniting Africa’s people. While the Speaker of
Uganda highlighted the strengths of the President of the Pan-African Parliament, whom he
commended for honouring all women of Africa and the world.
The Speaker of South Africa
highlighted the importance of the Pan-African Parliament in reclaiming Africa’s land, and leading the
continent in creating its own destiny.
The President of the Pan-African Parliament, Hon. Gertrude Mongella paid tribute to the late 4th Vice
President, Hon Jerome Sacca Kina Guezere of the Pan-African Parliament. The President also noted
the important role that South Africa had played in housing the Pan-African Parliament and providing
structures for this purpose. The President further referred to the important role of the commission of
the African Union, National Governments and the need for a budget for the Pan-African Parliament.
The President further highlighted important achievements of the Pan-African Parliament, including the
peacekeeping mission to Darfur.
2.
Plenary Debates and Committee Meetings
The agenda of the third ordinary session of the Pan-African Parliament was conducted both in
meetings of committees, as well as in the Plenary. The purpose of the committee meetings was to
work through committee work programs and for each committee to come up with at least three
priorities. Committees that are covered in the report include:

The Committee on Rules, Privileges and Discipline – the Committee prioritised the Code of
Conduct for members of the Pan-African Parliament and the Draft Proposal on guidelines for
oversight and accountability for the Pan-African Parliament.
23 AUGUST 2005

PAGE: 529 of 644
The Committee on Co-operation, International Relations and Conflict Resolution – the
Committee has identified a number of events and resource mobilisation in order to coordinate
cooperation and peacekeeping efforts within and outside the continent.

Committee on Trade, Customs and Immigration Matters – the Committee prioritised a fact
finding mission to the Commissioners of trade and industry, and Social Affairs of the African
Union Commission to get status reports on their activities with particular reference to trade
regulations, tariff laws, immigration rules, regulations and laws.

Committee on Transport, Industry, Communications, Energy, Science and Technology –
in addition to intensive committee discussions of transport problems in Africa, the Committee
presented a report to the House on the important aspects of the industries that had been
identified. The report was debated and adopted in the House.

Committee on Justice and Human Rights – the Committee prioritised capacity building for
all members of the Committee on their roles and functions in relation to the overall mandate of
the Committee.
3.
Recommendations
The House adopted the following recommendations:
1. Pan African Parliament Peace Mission to Darfur (PAP-Rec. 001/05)
2. World Summit on Information Society (PAP – Rec. 002/05)
3. The African Land Title System (PAP-Rec. 003/05)
4. The Creation of an African Phytogenetic Resource Bank (PAP-Rec.004/05)
5. Communications and Information Infrastructure in Africa (PAP-Rec. 005/05)
23 AUGUST 2005
PAGE: 530 of 644
6. The request directed to States who have not yet ratified the Constitutive Act of the Union and
Its Protocol (PAP-Rec.006/05)
7. Encouraging Pan-African Investment and Financing Institutions to Focus on Africa’s Rural
Economy (PAP-Rec.007/05)
4.
Resolutions
1. Signing of Adherence to the African Peer Review Mechanism (PAP-Res. 001/05)
2. Resolution on the Development of a Continental Code of Conduct (PAP-Res.002/05)
3. Appreciation of the Intervention of the President of the African Union in the Togo Crisis
(003/05)
4. Appreciation of the Work of Mr. Kofi Annan, The Secretary General to the United Nations
(PAP-Res.004/05)
5. Resolution Relating to the Presidential Elections in Togo on 24 April 2005 (PAP-Res. 005/05)
6. Establishment of Pan African Investment and Financing Institutions for African’s Rural
Economy (PAP-Res. 002/05)
7. Designing Continental Policy Programmes for Environmental Protection and Efficient
Utilisation of Natural Resource (PAP-Res. 004/05)
8. Appreciation to H.E. Olusegun Obasanjo, Chairperson of the African Union, for his Actions on
the Togo Crisis (PAP-Res.005/05)
9. Dispatch of a PAP Mission to Cote D’Ivoire at the Beginning of May 2005 (PAP-Res.009/05)
10. Dispatch of a PAP Peace Mission to the Democratic Republic of Congo During the First
Fortnight of May 2005 (PAP-Res.10/05)
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PAGE: 531 of 644
11. Congratulating H.E. Thabo Mbeki, President of the Republic of South Africa, on His Success
in Achieving a Peace Agreement Between the Warring Parties in Cote D’Ivoire
(PAP-
Res.008/05)
Section B
1.
INTRODUCTION
The Third Ordinary Session of the Pan-African Parliament took place from 29 March to 11 April
2005 at Gallagher Estate, Midrand, Johannesburg.
The South African Pan-African Parliamentarians were: Ms. B. Mbete (Leader of the delegation), Mr.
M.J. Mahlangu (Chairperson of the National Council of Provinces), Mrs. F. Hajaig, Advocate Z.L.
Madasa and Ms. S.C. Vos. The delegation was assisted by Mr. B. Nonyana (support to Mr.
Mahlangu), Ms. A. Barnard (Support to Ms. Mbete), Ms. B. Diutlwileng (Researcher), Ms. B.
Letompa (Researcher) and Mrs. J. P. Merckel (Administrator).
The Third Ordinary Session of the Pan-African Parliament was marked by the opening ceremony that
took place on Tuesday, 29 March 2005 and included solidarity speeches by various Speakers of
National Parliaments including South Africa’s Speaker, Hon Ms Baleka Mbete. From Wednesday, 30
March to Monday, 11 April 2005, committee work and plenaries took place in earnest. The volume of
work covered by the 10 committees and the quality of the debates in plenary showed the level of
dedication and will to succeed from all the Pan-African Parliamentarians, particularly the South
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African members who made salient contributions to both the committee work programme and the
debates in the House. At least two South African members participated in each debate over the 14
days, with firm commitments from all South African members to provide ongoing support to the PanAfrican Parliament during its infant stage. An example of this commitment was displayed by Hon Mr
Mahlangu who made himself available to assist with the drafting of a Code of Conduct for the PanAfrican Parliamentarians and defining the Oversight and Accountability role of the Pan-African
Parliament as an effective organ of the African Union.
The third ordinary session of the Pan-African Parliament was graced by excellent presentations by in
particular Ambassador Djinnit, New Economic Partnership for Africa Development (NEPAD) and
United Nations Children’s Fund (UNICEF) on HIV and Aids in Africa. On Friday, 08 April 2005, the
third ordinary session was privileged to be in the presence of 8 previous Heads of State including the
Prime Minister of Cote D’Ivoire, following the successful signing of the Pretoria Agreement on Cote
D’Ivoire, a peace agreement brokered mainly by the H.E. President T M Mbeki.
2. ISSUES DEBATED IN THE HOUSE
The third ordinary session of the Pan-African Parliament focused on the following issues:
2.1
2.2
Solidarity Speeches.
Administrative issues, including:
 The 2005 Budget.
 Annual Report.
 Work plan of the Pan-African Parliament.
 Establishment of a trust fund.
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 Launching of the Pan-African Parliament website.
2.3
Procedural and process issues, including
 Strengthening Committees
 Consideration of Committee priorities
 Consideration of Committee work plans.
2.4
Debates on issues of continental significance. Topics that were debated include:

The Millennium Development Goals.

United Nations Reform.

Combating HIV/AIDS in Africa.

Transportation and Communication problems in Africa.

Report on Peace Mission to Darfur

Agricultural problems in Africa.
The third ordinary session of the Pan-African Parliament was attended by 194 members from 39
member states.
3.
OFFICIAL OPENING
Hon. Gertrude Mongella, M.P, President of the Pan-African Parliament, led the delegation in
meditation and silent prayer and thereafter proceeded to invite various speakers to present messages of
solidarity.
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Solidarity Speeches
i) Speaker of Parliament: Uganda
The Hon.Speaker of the National Assembly of Uganda noted that the occasion of the Third ordinary
session of the Pan-African Parliament marked the first anniversary of the Pan-African Parliament,
which was inaugurated on the 1 of March 2004. The Speaker congratulated the first President of the
Pan-African Parliament and indicated that Hon. Mongella honoured all women of the world, but
particularly the women of Africa. He also saluted the founders of the Pan-African Parliament and
highlighted the successes of the Pan-African Parliament and African Union (AU), particularly the
peacekeeping successes, which are to promote peace, and security in areas like Darfur in Sudan. The
Speaker also highlighted challenges that the Parliament faces, including funding. In conclusion, the
Speaker extended gratitude to the South African Government for the support provided, including the
building structure that houses the Pan-African Parliament.
ii) Speaker of Parliament: South Africa
Hon. Mbete noted that although the past year was a challenging one, the Pan-African Parliament has
recorded many successes, which included achievements with regard to the Rules of Procedure. The
Speaker indicated that the Constitutive Act of the African Union guided the rules and that the PanAfrican Parliament did not have full legislative powers, but assumed an advisory role over
Parliaments.
The Speaker indicated that it had been a challenge to set up clear oversight functions. One of the
major challenges of the Pan-African Parliament is that it is not yet a fully legislative body, but only
assumes an advisory role over Parliaments. It is important for the Pan-African Parliament to critically
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examine delivery by national Governments.
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In addition, although committees have been formed,
there is still a need for clear programmes so as to provide positive feedback to member countries.
The Speaker noted that Africa was once regarded as part of Europe, and that Africa is now determined
to reclaim its soil and create its own destiny. In conclusion, the Speaker stressed the need and
importance of taking pride in the Pan-African Parliament, ensuring that it is not just a talk-shop and
that it has substance. It was also important to ensure that at the end of the Third Ordinary Session,
clear programmes for Committee work would be in place and positive feedback should be provided to
member countries.
iii) Keynote Address: President of the Pan African Parliament
(Hon.
Ambassador
Gertrude Ibengwe Mongella)
H.E. Ambassador Mongella made a formal announcement of the passing away of the 4th VicePresident of the Pan-African Parliament, Hon. Jerome Sacca Kina Guezere, who died on 11 January
2005 in his home country Benin after taking ill in Accra, Ghana.
The President, as well as several
other speakers, paid tribute to the late Vice President and requested a moment of silence in
remembrance.
President Mongella highlighted the important role that South Africa has played in the establishment of
the Pan-African Parliament and expressed appreciation to the host country and other national
parliaments from across the continent for their support and contribution towards the development of
the Parliament6.
6
In the first year (2004) the Pan-African Parliament operated without a budget and therefore relied on voluntarism by
National Governments. The Parliament was established in terms of Article 5 of the Constitutive Act of the Union as the
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Key players in the development of the Pan-African Parliament had been:

The Commission of African Union: The Commission of African Union, in particular the
Commission for Political Affairs, spearheaded the process of launching the Pan-African
Parliament. The Commission continues to provide financial and human resources that facilitate the
functioning of the Pan-African Parliament.

The Host Country:
The South African Government, and particularly H.E President
Thabo Mbeki, has demonstrated total commitment and support to the Pan-African Parliament. The
host government has provided services and support according to the Host Country Agreement by
ensuring the availability of the required buildings, staff, infrastructure and services for the smooth
operation of the Pan-African Parliament.

National Parliaments: National Parliaments have taken the responsibility of covering
travel and subsistence costs for their delegates to the Pan-African Parliament during the
committees and plenary meetings.
In addition, the Speakers of National Parliaments have
contributed to and supported the Pan-African Parliament at its initial stage of development.
The Parliament has carried out its activities under the leadership of the Bureau composed of the
President and the 4th Vice-Presidents. According to Article 12 (5) the President and the Vice
Presidents shall be the Officers’ of the Pan African Parliament. In the discharge of their duties, the
officers are assisted by the Clerk and the two Deputy Clerks. The Bureau appointed an Interim
Clerk and two Deputy Clerks while the Parliament was waiting for the approval of its budget for
representative body of the African people to enable full participation in the development of their continent, promotion of
peace and human rights and development of culture of democracy in Africa.
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the recruitment of permanent staff. The Pan-African Parliament had adopted its own rules and
procedures and formed 10 Parliamentary Committees according to Article 12 (1) and 12 (13),
during its Second Ordinary Session in September 2004.
Swahili was introduced as a working language during the second session, bringing to the number of
working languages of the Parliament to 5. Some of the successes of the Parliament include:

The mission to Darfur – investigating issues of conflict in Darfur. Africa is showing
leadership in the resolution to address the numerous challenges. The President
congratulated the committee that visited Sudan under difficult circumstances and at a
time of conflict.

The Pan-African Parliament has established an agreement of understanding with several
continental and regional structures.
Cooperation is expected to strengthen technical
capabilities.

The Bureau Committee meetings have developed 2005 work plans and the Pan-African
Parliament’s strategic plan to be discussed during this third session.

The Bureau has carried out a number of advocacy initiatives to popularise the Parliament
within and outside Africa with the hope of establishing institutional relationships and
partnerships with institutions of a similar nature e.g. The Parliamentary Assembly of the
Council of Europe; the European Union (EU) Parliament, European Parliamentarians for
Africa (AWEPA); United Nations Department of Economic and Social Affairs
(UNDESA). Such cooperation is expected to build strong technical capacity within the
Parliament.
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
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The Pan-African Parliament is in the process of looking for additional funding. In this
regard, agreements have been made with the United States of America, Europe and other
countries.

The Bureau has examined the need to provide the Parliament with the necessary
resources. At this third session there will be a discussion on the establishment of the
Trust Fund as an additional source of funding for Pan-African Parliament’s activities.
The ultimate goal is to make the Pan-African Parliament truly representative of the people of Africa in
social, economic and political issues around the continent, as well as in international bodies so as to
ensure that the agendas of Africa are considered by multilateral institutions. In addition, the PanAfrican Parliament seeks to embrace programmes such as the NEPAD in addressing social and
economic development of the continent, to protect the human rights of the African people, to manage
the globalisation process by influencing the international agenda, as well as to enhance partnerships for
effective resource sharing and advocacy.
4.
ADMINISTRATION PROCESS AND PROCEDURAL ISSUES
The agenda for the Third Ordinary Session of the Pan-African Parliament, made allowance for various
subjects to be debated in Plenary. The plenary sessions were robust and included inputs from all
members of the South African Delegation.
Election of 4th Vice President
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A new Vice-President was elected to replace the late 4th Vice-President of the Pan-African Parliament.
Two candidates were nominated and Hon. Member Natra Keofile from Benin was elected.
Annual Report
The Annual Report was tabled in the House and was debated and adopted.
Work plan7
The House considered a comprehensive work plan for the Pan-African Parliament for 2005. The 2005
work plan focused on the following key issues:

Formulation of a strategic plan to support resource mobilisation efforts. This includes
resource mobilisation for Pan-African Parliament activities and institutional capacitybuilding.

The need for an image building campaign for the Pan-African Parliament.

Preparation and consideration of the Pan-African Parliament’s 2006 budget.

Consideration of the 2006 African Union budget, as well as reports of other AU
structures.

Consideration of Committee reports and special missions reports.

Consideration of the Pan-African Parliament’s Annual Report as well as the annual
reports of other structures of the African Union.

7
Consideration and establishment of the Pan-African Parliament’s website.
, The PAP work plan is attached as Annexure 1.
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The work plan was widely accepted and adopted with the view that it could have been more specific
and detailed in terms of activities, relationships with similar bodies and other organs of the African
Union, the specific continental role of the Pan-African Parliament and expatiation on the Pan-African
Parliament’s mandate.
Annual Budget8
The Annual Budget of the Pan-African Parliament was tabled in the House. After some robust and
intense debating, the Annual budget was adopted.
The PAP submitted a budget proposal of $6.9 Million, out of which $5.6 Million was approved by the
AU executive council. The council effected several amendments to the budget, including:

A reduction of $737 288 in common staff costs; the reduction was due to the elimination of
the recruitment costs, installation allowances and group insurance; as well as the reduction of the
education allowance.

A reduction of $534 000 in the supplies and services budget. The reduction in this budget
was due to the elimination of the responsibility allowance for Members of Parliament.

A reduction of $36 611 in the meetings and seminars budget. The budget for translators was
reduced to cover 10 instead of 15 translators per session.
In total, the original budget was reduced by $1 307 899.
8
The PAP budget is attached as Annexure 2.
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Members expressed concern over the reduction of the budget, as well as the delay in the transfer of
funds and indicated that this could have a negative impact on the activities of the Pan-African
Parliament.
Hon. Dr Faika El_Refaie, seconded by Hon. Saida Agrebi, presented a written motion in terms of rule
61 that the House urges the African Union Commission to transfer the funds of the Pan-African
Parliament budget without further delay, in order to enable the Parliament to carry out its mandate in
accordance with the Constitutive Act, the Protocol and the Rules of Procedure.
Trust Fund
The Committee on Monetary and Financial Affairs presented a motion for the Parliament to grant
permission for the establishment of a trust fund as an additional means to mobilise resources to support
the work of the Pan-African Parliament. The trust fund will be beneficial, not only in accelerating the
implementation of the programmes of the Parliament, but also in multiplying the direct benefits of
regional cooperation as well as contributing to peace building, democratic governance, gender equality
and the harmonisation of regional laws.
The trust fund would further enable the continental Parliament to function effectively and mobilise
funds worldwide in order to supplement the African Union financial support. Funders prefer trust
funds because a trust fund would enable them to have input in the management of such a fund. The
Committee thus recommended that a trust fund would go a long way in building capacity for the PanAfrican Parliament, as well as enable the Pan-African Parliament to be financially independent and
thereby reducing its dependence on national governments and enhancing its oversight role.
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The House adopted the motion and the President indicated that as soon as the trust fund is established,
the Bureau should immediately set up the rules and regulations in relation to it.
5.
TOPICS FOR DISCUSSION
Debate on Transport, Industry, Communication, Energy, Science and Technology
The Chairperson of the Permanent Committee on Transport, Industry, Communication, Energy,
Science and Technology presented a report on resolving communication and transport problems in
Africa. The report highlighted the fact that the absence of transport infrastructure and sectoral plans to
ensure links within and between sectors has seriously impeded social and economic development in
Africa. It is therefore important to equip the continent with appropriate infrastructure, and more
particularly with transport and communications networks that will facilitate trade and circulation.
African rail networks have not yet put in place regional connections able to foster true economic
cooperation and ensure complementarity in development efforts in Africa, and also to facilitate trade
between African countries. The renovation and modernisation of railway networks in Africa is a
priority: doubling of existing tracks, renewal of facilities, maintenance of railway tracks and
electrification of lines. This will ensure more efficient facilitation of the transport of goods.
African countries are adversely affected by poor road, maritime and air travel infrastructure, which
need to be reorganised and modernised. The evaluation of the transport sector: land, sea and air, and
the prospect of their development, has been recorded as a priority activity in the NEPAD framework.
The Committee called upon all political and economic roleplayers tasked with the implementation of
NEPAD to commit all necessary resources and means at their disposal to activating the development
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of the road and rail infrastructure through the construction of a regional connection likely to attain
regional integration in the field of land and rail transport.
The Committee recommended the launch of extension, modernisation, harmonisation and
electrification of railway lines. The Committee further recommended the rehabilitation of African
ports and the extension of their capacity to be able to cope with container transport through links
between all maritime regions in Africa.
The Committee identified a need to introduce a prevention and security policy as well as for rigorous
control against maritime pollution. There is also a need for cooperation between African maritime
companies so that their personnel can benefit from training in the fields of navigation, naval and repair
work, upkeep and maintenance.
The Pan-African Parliament should commit all its Members to work within their own Parliaments and
countries in order to get closer to the experts responsible for NEPAD follow-up. This should be done
in order to allow Members to acquaint themselves with the realities of the road, rail, sea and air
networks and to ensure the wide dissemination of the recommendations of the Pan-African Parliament.
The report was debated and widely accepted by Members as highly informative and crucial. The
house therefore adopted the report.
The Speaker of the Republic of South Africa raised an oral motion in terms of Rule 62 that the
Committee on Communication and Transport must conduct a comprehensive research study of all
Transport and Communication problems in Africa and come up with solutions in this regard. This
report should then be debated and adopted in the House.
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Debate on Rural Economy, Agriculture, Natural Resources and Environment
The Committee on Rural Economy, Agriculture, Natural Resources and Environment made a
presentation on the actions that must be taken by the Pan-African Parliament to harmonise state and
regional policies, legislation and actions which would enable the continent to emerge from its current
poverty. The Committee looked into ways in which the PAP can assist member states to adopt the
Pan-African doctrine to integrate the rural economy components into a productive zeal for the
continent.
The Committee recommended that Parliament carry out a continental study of the current position of
each member state with a view to identifying common problems and programmes. Such a study
needed to identify the existing policies aimed at solving rural economy, agriculture, natural resources
and environment problems as well as enhancing existing programmes, with a view to adopting
common policies which will ensure collective development on the continent.
Such policies should be popularised through seminars, public meetings in each state and
communication through the media, to make the public aware of their existence. Meanwhile, the PanAfrican Parliament and all other organs of the African Union should promote peace, security and good
governance as necessary conditions for development.
The predominance of agriculture in Africa's rural economy should be recognised by governments and
societies at large so as to accord this sector its due importance, in terms of financing, budgetary
allocations, research and marketing of its products. The vital role of women in the development of
Africa's rural economy should be recognised and men and women should be treated more equally.
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Africa's environmental and natural resources are being carelessly depleted by the increase in human
and animal populations. The Pan-African Parliament should, therefore, develop a continental policy to
maintain the balance between the increasing populations and finite natural resources with a view to
improving land fertility and agricultural production.
There is an urgent need for the African Union to establish a code of conduct for member states to abide
by so as to ensure their fulfillment with the requirements of the code.
Monitoring could be a big
problem, hence the need for an enforcement mechanism such as the African Peer Review Mechanism.
The Committee also presented a brief action programme for implementation.
Most Members expressed appreciation for the report and recommendations during the debate and the
report was adopted.
Debate on the Pan-African Parliament Peace Mission to Darfur, Sudan
The Leader of the Fact-Finding Mission to Darfur, Hon. Abdul Katuntu, introduced the report of the
Permanent Committee on Justice and Human Rights to the House, and the Rapporteur Hon. Halifa
Sallah presented the report. The Committee recorded the following findings:

The military aspect of the conflict in Darfur is that 80% of the tribesmen of Darfur carry weapons.
This was a direct result of the conflict in the 70s and 80s between Libya and Chad, which did not leave
Sudan unaffected by the proliferation of weapons. The acquisition of sophisticated weapons by
tribesmen has led to their use in settling tribal conflicts.
In addition, what started out as a tribal
conflict between Nomads and farmers has taken on a political face and government and public
property have been destroyed and 400 policemen killed.
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
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A state of insecurity prevails among citizens and many people reported serious atrocities. Native
administration has been torn apart and customary justice is in shambles. People were afraid to talk to
the Committee for fear of reprisal. They complained about the continuous sound of gunfire, arrests
without trial and pressure to go back to villages where there was no security. There was also a lot of
distrust of the security forces, and the police, hence distrust and insecurity prevails.

One third of the population of Darfur had been displaced, between 1.5 to 2 million deaths reported
and massive destruction of property has also been reported. There has also been recorded evidence of
rape and violence against women. The Committee thus stated that the conflict in Darfur has resulted in
a humanitarian disaster. The attempt to discuss HIV and AIDS in camps was unsuccessful.
Among others, the Mission strongly recommended the following:

That the negotiation in governance on Darfur be speeded up and be time bound in order to provide
the blueprint that would guarantee the political, economic and social rights of the population.

That the African Union facilitates the convening of a National Conference on peace, democratic
governance and development in Sudan involving the government, the parties to all regional agreements
and all stakeholders in general, to enable them to prepare a strategic document for the sharing of power
and wealth among the regions.

That the mandate of the protectors in the cease-fire commission be enhanced to go beyond
protecting military observers, to include protection of the population of Darfur.
All necessary
instruments, institutions and resources should be mobilised to ensure that the cease-fire agreement is
respected.

That the Pan-African Parliament establishes a trust fund for humanitarian assistance to populations
in conflict areas in Africa.
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The report was debated and the recommendations were adopted. The report is attached as Annexure 5.
Debates on Peace on Security Issues in Africa

In accordance with Rule 38 (1) and 73 (2) of the Rules of Procedure, the Commissioner on
Peace and Security of the African Union, Ambassador Said Djinnit made a statement on Peace and
Security Issues in Africa.

Debate ensued on Peace and Security Issues in Africa in accordance with Rule 73(2) of the
Rules of Procedure.
Debate on the Millennium Development Goals in Africa
The Chairperson of the Permanent Committee on Co-operation, International Relations and Conflict
Resolution, Hon Elhadji Diao Kante, presented a report on achieving the Millennium Development
Goals in Africa. The goals aim to:
1.
Eliminate extreme poverty and hunger; as well as ensure education for all.
2.
Promote sexual equality and the empowerment of women.
3.
Reduce infantile mortality and improve maternal health.
4.
Combat HIV and AIDS, malaria and other diseases.
5.
Ensure a sustainable environment.
6.
Set up a world partnership for development.
In order to reach these goals, each developing country is primarily responsible for its own
development, which it must assume by:
 Reinforcing governance and fighting corruption.
 Adopting policies and making investments that will promote growth driven by the private sector.
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 Mobilising fully the available resources to finance national development strategies.
Developed countries committed themselves to ensuring that developing countries that adopt
transparent, credible and accurately costed development strategies receive all the support they need in
the form of increased development aid, a commercial system more firmly aligned with development
and broader intensified debt relief.
A debate ensued wherein members called for a review of the Millenium Development Goals (MDGs)
and the restructuring of the African socio-ecomonic policies in order to meet the MDGs. Furthermore
it was stated that, there is a need for reform of multilateral institutions such as the United Nations and
the World Trade Organisation (WTO) to ensure trade fairness. The report was subsequently adopted.
Debate on HIV and Aids
The debate on HIV and Aids was preceded by an audiovisual presentation by members of European
Parliamentarians for Africa (AWEPA). The presentation highlighted the Cape Town Declaration,
which was established in 2004. However, AWEPA indicated that making declarations is not enough
and that these should be implemented.
Child-headed households and children orphaned by AIDS are increasing, particularly in sub-Saharan
Africa. The Pan-African Parliament should assume a leading role in the combating of HIVand AIDS.
Sensitisation, education and the introduction of HIV and AIDS in the educational system is important.
Further, since war increases the incidence of HIV and AIDS. Peace in Africa would reduce the
incidence of the disease.
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It is important to consider the different dimensions of HIV and AIDS - the health, social, human
resources, developmental, human security and political aspects.
HIV/AIDS should therefore be
approached from a multi-sectoral point of view. It is also important to avoid fragmentation when
dealing with AIDS orphans.
It is important to focus on behavioral change and to develop a continental plan to fight HIV and AIDS.
The President of the Pan-African Parliament informed European Parliamentarians for Africa
(AWEPA) that the Pan-African Parliament has set up a trust fund specifically to mobilise funds to deal
with such important continental issues. The House moved that the recommendations be adopted.
Debate on Reform of the United Nations
The debate on the Reform of the United Nations focused mostly on the reform of the United Nations
Security Council as this is the most far-reaching reform owing to the important role that it has on
international peacekeeping and security.
The Committee recommended that:
 Africa demands two permanent seats with veto rights and four non-permanent seats on the Security
Council.
 The Pan-African Parliament to lobby the international parliamentary institutions with a view to
securing support for Africa's demands.
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 The Pan-African Parliament, in consultation with similar institutions, take the necessary action to
ensure that balance is restored in the voting procedures of the Bretton Woods
institutions where eighty percent of the members carry only thirty percent of the votes.
The report was adopted.
6. COMMITTEE WORK PLANS AND PRIORITIES
6.1 The Committee on Rules, Privileges and Discipline
SA Representative: Hon. M.J. Mahlangu
Priorities:
1.
Code of Conduct for Members of the Pan-African Parliament.
2.
Consideration of the Draft Proposal on Guidelines for Oversight and accountability for the
Pan-African Parliament
Both agenda items were presented by the Hon. M.J. Mahlangu (South Africa). The following issues
were considered in respect of the draft proposal on Guidelines for Oversight and Accountability for the
Pan-African Parliament:

The Pan-African Parliament must hold a workshop to discuss its oversight powers.

The Pan-African Parliament must provide oversight over the African Union Commission.

Scrutiny of the Treaty Establishing the African Union, the Protocol and the Rules of the
Pan-African Parliament, to unpack the oversight powers of the Pan-African Parliament.
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
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Separation of the Executive Authority from the Legislative Authority is necessary to enable
meaningful oversight.

An in depth study on how similar continental parliamentary organisations conduct
oversight.

Establishment of a Committee dealing specifically with oversight matters.

Analyses of Rule 73(3) and Rule 74(1) as the starting points for oversight functions of the
Pan-African Parliament.

Determining the oversight role of the Pan-African Parliament vis-à-vis other organs of the
African Union.

Establishing how oversight on New Economic Partnership for Africa Development
(NEPAD) could be conducted.

The committee resolved that the Hon. M.J. Mahlangu would table a follow-up report on
Oversight and Accountability, which takes into account issues raised above.
Code of Conduct for Members of the Pan-African Parliament
After consideration of draft Code of Conduct for Members of the Pan-African Parliament, the
committee resolved that the Code would be presented to the House during the fourth Session of the
Pan-African Parliament for adoption.
6.2 Committee on Co-operation, International Relations and
Conflict Resolution
SA Representative: Hon. B. Mbete
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Priorities:

Organisation of a seminar with the aim of keeping the Committees’ members up to
date. Resource mobilisation on going – Period starting from February until March
2005.

Ten days visit for 2 or 3 committee members to the African Union Headquarters to
collect information on conflicts in Africa and their resolution as well as information
on co-operation. Period starting from May 2005 until June 2005.

Assigning 2 or 3 members to:
1. Cote d’Ivoire – 15 days
2. Democratic Republic of Congo – 15 days
3. Togo – 15 days
Aim: Information gathering with the view to making recommendations on the conflicts in these
countries. Period starting from April until May 2005.

Participation of 1 or 2 members in high-level research on issues of
conflict resolutions

Observation of elections on the continent by 1 or 2 members who will
be appointed according to the area and in collaboration with the
Regional Parliamentary Caucuses.
6.3 The Committee on Trade, Customs and Immigration Matters
SA Representative: Hon. F. Hajaig
Priorities:
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1. Fact finding visit to the commissioners of Trade and Industry, and Social Affairs of the
African Union commission to get status reports on their activities with particular reference to
trade regulations, tariff laws, immigration rules, regulations and laws.
2. Invite NEPAD secretariat two days prior to the plenary to brief the committee on their
programmes and Strategy on tariff laws, trade customs and immigration.
3. Visit different economic sub-groupings: Southern Africa Developing Communities (SADC),
Economic Community of West African States (ECOWAS), Common Market for Eastern and
Southern Africa (COMESA), etc. with a view to discussing sub-groupings interrelationships
and coordination in areas of the Technical Credit Insurance Consultants (TCIC) mandate.
4. Workshop with representative of the World Trade Organisation to discuss Doha round and
agriculture subsidies and non-trade barriers.
6.4 The Committee on Transport, Industry, Communications,
Energy, Science and Technology
SA Representative: Hon. S. Vos
Priorities:
1.
Assessing, through meetings, the situation in each area of jurisdiction of the Committee.
2.
Making an inventory of all Conventions, Agreements, Protocols and Treaties governing the
various domains.
3.
Study New Economic Partnership for Africa Development (NEPAD’s) programmes and
Projects Relevant to the Committee’s Activities.
6.5 The Committee on Justice and Human Rights
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SA Representative: Hon. Adv. Z.L. Madasa
Priorities:
1. Regional workshops for members of the Committee and other stakeholders and the broad
objectives of the workshops have been identified as follows:

Capacity-building for all members of the Committee on their roles and functions in relation
to the overall mandate of the Committee.

The Committee, will at the same time, be studying and getting first hand information on
human matters of various regions.

Workshop should be held outside the Republic of South to enable the Committee to market
and advocate its activities to various member states.

The Committee further proposes that the first workshop should be held in West Africa and
if possible, the Bureau should assist with funding in this regard.
2. Creation of a database for the Committee
The creation of a database for the Committee should be linked to the process of harmonising laws of
member states. The gathering of information on Treaties, Protocols and Conventions relating to
Human Rights issues. The Committee should look at the possibility of engaging consultants in the
creation of a database and the database should take into account legislative information for each
country with emphasis on democratic principles.
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3. Establishment of a desk on Human Rights
The Committee proposes that the Bureau establishes a desk on human rights.
7. RECOMMENDATIONS
1. Pan African Parliament Peace Mission to Darfur (PAP-Rec. 001/05)
The Pan-African Parliament recommends that the African Union should ensure:
I.
The political negotiations in Abuja which are designed to establish a democratic culture in
Darfur that can guarantee the population a fair share of power and resources. This task should
be accelerated and time bound;
II.
The Naivasha Model is adopted to conclude the negotiation so as to ensure complementarity
in implementation of the mechanism for sharing power and resources in the Sudan;
III.
That the terms of the agreement to incorporate periodic consultation with all stake holders in
the Sudanese society to ensure that no group is excluded or marginalised in the sharing of
power and resources;
IV.
That immediate steps are taken to influence the Sudanese government to find ways and
means of quantifying and qualifying the losses caused by the war and launching a Trust Fund
with the support of the African Union and the international community to finance a
comprehensive resettlement programme for refugees and displaced persons;
V.
That the mandate of the African Union Mission is enhanced to include protection of the
population in Darfur;
VI.
That AMIS administrative structures are developed in line with the proposals in the PanAfrican Parliament Report on the fact-finding Mission to Darfur;
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VII.
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That the Joint Commission mentioned in the Humanitarian Cease Fire Agreement or a similar
institution be established to receive reports and address queries of violations.
VIII.
That the Joint Commission establishes a close relationship with the African Commission on
Human and People’s Rights to review the course of action that should be taken to address
allegations of violations of human and people’s rights, war crimes, genocide or crimes against
humanity;
IX.
That particular emphasis is given to the disarming of groups, which are not party to the Cease
Fire Agreement, especially the JanJaweed, so as to bring the whole population of Darfur on
board to negotiate for peace under a climate of democracy and human rights.
X.
That the Peace and Security Council of the Union begin urgent consultation with the UN
Security Council to facilitate complementarity in the approaches to promoting a final
settlement of the Darfur crisis. This should be done in order to foster dispensation of justice at
the right time and under the right circumstances to avert any reversal of the gains made in
resolving the crisis.
2. World Summit on Information Society (PAP – Rec. 002/05)
The Pan-African Parliament recommends that member Parliaments contribute to the success of the
Summit by sending high-powered delegations to the Summit.
3. The African Land Title System (PAP-Rec. 003/05)
The Pan-African Parliament hereby recommends that the African Union investigate the viability of
harmonising the establishment of an African Land Title System.
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4.
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The Creation of an African Phytogenetic Resource Bank
(PAP-
Rec. 004/05

The Pan-African Parliament requests the African Union to create a bank for the storage of the
phytogenetic resources of the continent with a view to preserving vegetable species and reconstituting
the vegetation cover in the event of major ecological disasters.

Urges the African Union to promote agronomic research for the improvement of vegetable species
and to create seed banks based on improved species.
5.
Communications and Information Infrastructure in Africa (PAP-Rec. 005/05)
The Pan-African Parliament recommends to the African Union that the establishment of a new
database in the fields of telecommunications and transport be considered within the New Economic
Partnership for Africa Development (NEPAD) framework and base on:

Private and Public Partnerships

Use of digital transmission technologies

Support for planning and management of spectrum frequencies

Qualitative support for selected projects such as the manufacture of computers
and
telecommunications facilities
Recommends further to the African Union that the important projects within the NEPAD medium term
framework be brought forward in order to allow the creation of a reliable and efficient African
telecommunications and transport system able to speed up the physical integration of Africa, eliminate
problems relating to distance, facilitate mobility, promote exchange and legitimately support the
lasting development of Africa.
6. The Request directed to States who have not yet ratified the Constitutive Act of the Union and
its Protocol (PAP-Rec.006/05)
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The Pan-African Parliament urgently appeals to all the African States that have not yet ratified the
Constitutive Act of the African Union and above all to those who are members of the Pan-African
Parliaments to do so as soon as possible.
7. Encouraging Pan-African Investment and Financing Institutions to Focus on Africa’s Rural
Economy (PAP-Rec.007/05)
The Pan-African Parliament therefore recommends that the African Union, in conjunction with the
Private Sector, Pan-African Investment and Financing institutions, encourages new and existing
investment and financing institutions to focus on the continent’s rural economies.
8. RESOLUTIONS
1. Signing of Adherence to the African Peer Review Mechanism (PAP-Res. 001/05)
Resolve to reiterate its Recommendation REC 002/04 on the importance of signing of the African Peer
Review Mechanism (APRM) by States and Governments as a demonstration of their commitment to
development the principles of democracy and good governance, Rule of Law and respect for human
rights.
2. Resolution on the Development of a Continental Code of Conduct (PAP-Res.002/05)
Resolves:
4.
That the African Union develops a Continental Code of Conduct on the Use and Exploitation
of the Natural Resources to be implemented, alongside instruments such as the Environment
Benefit Index (EBI), by Member States through legislation in their respective national
territories;
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5.
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That each Member State annually reports to the African Union its adherence to the said Code
of Conduct; and
6.
That the African Union designs continental policy programmes for environmental protection
and efficient utilisation of the natural resources for adoption by Member States and Regional
Economic communities.
3. Appreciation of the Intervention of the President of the African Union in the Togo Crisis
(PAP Res-003/05)
The Pan-African Parliament commends H.E. President Olusegun Obasanjo, the President of the
African Union, for his courageous and principled action.
4. Appreciation of the Work of Mr. Kofi Annan, The Secretary General to the United Nations
(PAP-Res.004/05)
The Pan-African Parliament expresses its support for Mr. Kofi Annan, as Secretary General of the UN,
and wishes him success throughout his tenure of office at the United Nations.
5. Resolution Relating to the Presidential Elections in Togo on 24 April 2005 (PAP-Res. 005/05)
The Pan-African Parliament therefore calls upon the government and the Togolese people to ensure the
calm and transparent organisation of the presidential elections on 24 April 2005.
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6. Establishment of Pan African Investment and Financing Institutions for African’s Rural
Economy (PAP-Res. 002/05)
Resolves that the African Union establishes, in conjunction with the Private Sector, Pan African
Investment and Financing institutions for the continent’s Rural Economy.
7. Designing Continental Policy Programmes for Environmental Protection and Efficient
Utilisation of Natural Resource (PAP-Res. 004/05)
The African Union should design Continental Policy Programmes for environmental protection and
efficient utilisation of the natural resources for adoption by Member States and Regional Economic
Communities.
8. Appreciation to H.E. Olusegun Obasanjo, Chairperson of the African Union, for his Actions
on the Togo Crisis (PAP-Res.005/05)
Commend, therefore, the African Union Chairperson for his courageous and principled actions.
9. Dispatch of a PAP Mission to Cote D’Ivoire at the Beginning of May 2005 (PAP-Res.009/05)
Expressing its satisfaction at the avant-garde role and the commitment of the African Union in
establishing peace and security in Africa:

Urgently calls upon the African Union to make every effort possible to resolve all the conflicts
in Africa, especially in Cote d’Ivoire.
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
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Urgently calls upon all the parties involved in conflict in Cote d’Ivoire to cooperate with the
African Union and the peace brokers in Cote d’Ivoire.

Exhorts the warring parties to strictly observe the peace agreement.

Decides on the dispatch of a Pan-African Parliament Peace mission from the Pan-African
Parliament to Cote d’Ivoire in order to make an assessment on the ground and to submit a
report to the Pan-African Parliament.
10. Dispatch of a PAP Peace Mission to the Democratic Republic of Congo During the First
Fortnight of May 2005 (PAP-Res.10/05)
The Pan African Parliament, expressing its satisfaction at the avant-garde role and the commitment of
the African Union in establishing peace and security in Africa:

Urgently calls upon the African Union to make every effort possible to resolve
all the conflicts in Africa, especially in the Democratic Republic of Congo.

Urgently calls upon all the parties involved in conflict to cooperate with the
African Union and the peace brokers in the Democratic Republic of Congo.

Exhorts the warring parties to strictly observe the peace agreement.
Decides on the dispatch of a Pan-African Parliament peace mission from the Pan-African Parliament to
the Democratic Republic of Congo in order to make an assessment and to submit a report to the PanAfrican Parliament.
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11. Congratulating H.E. Thabo Mbeki, President of the Republic of South Africa, on His Success
in Achieving a Peace Agreement Between the Warring Parties in Cote D’Ivoire
(PAP-
Res.008/05)
The Pan-African Parliament resolves to convey our heartiest congratulations to H.E President Thabo
Mbeki of South Africa on his successful mediation of the conflict in Cote d’Ivoire and his personal
commitment to peace in Africa. The Pan-African Parliament commends him for his distinguished
career initiatives in the name of the people of the United Nations.
9.
CONCLUSION / WAY FORWARD
The South African delegation was active in all sessions of the Pan-African Parliament and the
delegation is fully supportive of all developments of the Parliament.
In particular, the Speaker
highlighted the importance of strengthening Committees in her solidarity speech. This has been a
priority as Committees have developed their work plans and priorities. In addition, some Committees
have been able to produce reports that were debated in the plenary and were extremely beneficial to
the Pan-African Parliament.
The delegation also noted a need to highlight the major achievements and gains that were made during
the Pan-African Parliament’s second session when it adopted the rules of procedure to regularise the
internal functioning of the parliament. These rules of procedure were modelled along the lines of the
institution’s Constitutive Act. At the end of the second session last year, 2004, the Pan-African
Parliament passed a resolution to send a mission to Darfur to establish facts about the conflict in that
region and also make recommendations, which will be sent to African Union (AU) head of state and
governments in 2005. This was a major step, which showed Africa’s readiness to attend to its
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problems without relying on external powers to do so on its behalf. The report on the conflict in
Darfur was tabled during the third Pan-African Parliament’s third session by the Committee which was
tasked to do so which consists of Advocate Z. Madasa.
The Pan-African Parliament’s third sitting took another brave step towards addressing the issue of land
redistribution in Africa, which traces its background to the wars of dispossession of the Africans by the
colonialists. The Pan-African Parliament’s calls for the establishment of the African Land Title
System that will go a long way towards addressing problems related to land dispossession on the
continent. The institution also took cognisance of the fact that the continent has become a dumping
ground for all sorts of foodstuffs by the West’s wealthy nations. In an attempt to alleviate this burden,
it passed a resolution calling on the African Union to create a data bank for the storage of the
continent’s phytogenetic resources. This aims to preserve plant species and reconstitute the vegetation
cover in the event of major ecological disasters, and to promote agronomic research for the
improvement of plant species as well as create seed data banks based on improved species.
The third session also paved the way for tackling one of the critical issues that prevents the continent
from effectively becoming part of the global community and crossing the digital divide, the
improvement of its telecommunications and information technology as well as its transport systems.
To achieve this, the Pan-African Parliament has recommended the establishment of a new database in
the telecommunications and transport fields within the NEPAD framework. This is to be based on
private and public partnerships, with the use of digital transmission technologies, the support for
planning and management of spectrum frequencies and the qualitative support for selected projects.
This includes the manufacturing of computers and telecommunications facilities, which will make out
the key components of NEPAD’s framework for the continent. It is also becoming clear that the PanAfrican Parliament’s advisory role will finally transform into effective oversight powers when its
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current role is reviewed after the first five years of its existence. The House have agreed on the Fourth
session to be held in September/October 2005 at Gallagher Estate, Midrand.
List of Abbreviations
AU
African Union
H.E
His/Her Excellency
NEPAD
New Economic Partnership for Africa’s Development
PAP
Pan-African Parliament
SADC Southern African Development Community
CPA
Commonwealth Parliamentary Association
UNICEF
United Nations Children’s Fund
PACE The Parliamentary Assembly of the Council of Europe
ECOWAS
Economic Community of West African States
AWEPA
European Parliamentarians for Africa
UNDESA
United Nations Department of Economic and Social Affairs
COMESA
Common Market for Eastern and Southern Africa
TCIC Technical Credit Insurance Consultants
National Assembly
1. The Speaker
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Request from the Minister in The Presidency to recommend two candidates for appointment by the
President to the Media Development and Diversity Agency Board in terms of section 4(1)(b) of the
Media Development and Diversity Agency Act, 2002 (Act No 14 of 2002).
Referred to the Portfolio Committee on Communications for consideration and report.
COMMITTEE REPORTS
National Assembly and National Council of Provinces
1.
Report of the Joint Monitoring Committee on Improvement of Quality of Life and Status of
Children, Youth and Disabled Persons on their Strategic Planning Workshop, dated 24 June
2005:
The Joint Monitoring Committee on Improvement of Quality of Life and Status of
Children, Youth and Disabled Persons having held a Strategic Planning Workshop from 4-5
March 2005 in Gordons Bay, reports as follows:
Index
BACKGOUND
OBJECTIVE
2.1
The Mandate of the Committee
3.
SUMMARY OF PROCEEDINGS
Context
Presentation by Key Partners
Presentation by Dr E Kornegay, Chief Director – Programmes: Office of the Rights of a Child
(ORC)
The roles and Responsibilities of the Chief Directorate: Programmes
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The Roles and Responsibilities of the National Framework for the Advancement and
Coordination of Children’s Rights Delivery in South Africa and the Restructuring Process
Pillars of restructuring
Key Function of the ORC, Accounting Mechanisms and Beneficiaries of the Revised Children”
Framework
Proposed Solutions
Presentation by Ms S Matsepula, Director: Office of the Status of Disabled Persons (OSDP)
Achievements to Date, Definition of Disability, OSDP Budget
Challenges
Issues for Consideration
Presentation by Mr J Mbalula, Chairperson: National Youth Commission (NYC)
Key Focus Areas
Key Current Issue
Challenges and Improvements
Issues for Consideration
Presentation by Hon Mr GQM Doidge, M P, House Chairperson: Committees National
Assembly
Possible Areas of Intervention
The Strategic Planning Process
Break Away Group Discussion
Core Competencies for the Committee
Developing the Vision
The Committee’s Mission
The Strategic Objective of the Committee
Youth
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Children
Disabled Persons
Key Issues highlighted by Groups
Operating Principles
Support
Method of Work
Meetings and Scheduling of Meetings
Committee Views
4.
RECOMMENDATIONS
5.
CONCLUSION
6.
APPENDAGES
1.
BACKGROUND
The Joint Monitoring Committee on the Improvement of Quality of Life and Status of Children, Youth
and Disabled Persons (hereinafter referred to as the Committee) agreed in its meeting that was held on
10 November 2004 to hold a workshop to strategize and discuss issues that pertain to the smooth
running of the Committee, to revisit its mandate, to discuss outstanding matters of concern and clarity
and to draw a comprehensive programme for 2005 – 2006.
The Committee comprises mainly new members and the aim of this workshop was to familiarize
members with the functions and responsibilities of the three sectors that the Committee oversees
namely the offices in the Presidency of the Rights of a Child (ORC), the National Youth Commission
(NYC) and the Status of Disabled Persons (OSDP).
It is the view of the Committee that it cannot
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function efficiently and effectively if it does not align its programme with the above-mentioned
sectors.
As a Joint Committee it consists of members of both Houses i.e. the National Assembly (NA) and the
National Council of Provinces (NCOP) which have different programmes. Consequently, the
Committee has difficulty obtaining a quorum and meetings have had to be postponed due to few
members attending because of clashes with other Committees.
The cycle of the NCOP has to be taken into cognizance when scheduling meetings of the Committee,
if one meeting of the Committee is rescheduled for any reason the Committee has to wait a week or
two for it to be able to meet again and this has been very problematic. This is one of the main issues
that the Committee wishes to address, as the inability of the Committee to meet and discuss matters of
national importance pertaining to its work impacts negatively on the Committee and the sectors over
which it must exercise oversight.
2.
OBJECTIVE
The main objective of the Committee is to develop a programme that will help it to organise and
coordinate its work in a manner that will enable it to function to the best of its ability in carrying out its
oversight and monitoring role. The programme will lead to a Committee Business Plan that will ensure
that expenditure of the Committee supports the key policy priorities and that mechanisms are in place
to monitor the achievements of targets and reporting to Parliament.
The workshop was also aimed at assisting the Committee to understand the work of the three sectors
and to align its programme accordingly. Members of the Committee also discussed the issue of
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stakeholders within and outside government with the view of having a database that would help them
to do a follow up on all issues affecting Children, Youth and Disabled Persons.
2.1
The Mandate of the Committee
The Committee is required to monitor and evaluate progress with regard to the improvement in the
quality of life and status of Children, Youth and Disabled Persons in South Africa. This is to be done
with specific reference to the Government‘s commitments in respect of any applicable international
instruments and to duties and responsibilities in respect of any legislation.
The Committee is empowered to make recommendations to both or either of the Houses, or any joint
or House Committee on any matter within its functions as described in the Joint Rule 132 (d). The
Committee may also be required to perform any other related task assigned to it by resolution of both
Houses such as making recommendations for appointments to the National Youth Commission. The
Committee as a forum of national Parliament is expected to focus its role on the national sphere of
government in accordance with the principles of cooperative governance and intergovernmental
relations as outlined in Chapter 3 of the Constitution. The Committee can on its own initiative also
scan departmental reports and other papers tabled.
In monitoring progress, it will also engage with departments on the implementation of relevant
provisions when bills are enacted. In exercising its functions, the Committee could be expected to
engage on a regular basis with the relevant office in the Presidency, ORC, NYC and OSDP which are
tasked with the improvement of quality of life and status of Children, Youth and Disabled Persons and
also specifically at national level.
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3.
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SUMMARY OF PROCEEDINGS
The delegation comprised the following members and staff:
National; Assembly:
ANC: Ms P Bhengu, Mr I D Mogase, Mr M I Moss, Ms W Newhoudt- Druchen (Chairperson), Mr L
P M Nzimande, Ms T V Tobias; DA: Ms H Weber; IFP: Mr B W Dhlamini; UDM: Ms N Mdaka.
National Council of Provinces:
ANC: Mr D D Gamede (Deputy Chairperson), Mr T S Setona.
House Chairperson: Committees (N A)
Mr G Q M Doidge
Staff members:
Ms L S Matshikiza (Committee Secretary); Ms E May (Parliamentary Researcher); Mr F Holliday
(Committee Assistant).
Apologies:
ANC: Mr M S Sibiya
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The following officials were also in attendance:
Dr E Kornegay, Chief Director: Office of the Rights of a Child (ORC)
Mr L Mboyi, Chief Executive Officer: National Youth Commission (NYC)
Mr J Mbalula, Chairperson: NYC
Ms S Matsepula, Director: Office of the Status of Disabled Persons
3.1
Context
The Committee consists of 13 Assembly Members and 9 NCOP Members. There is joint chairing by a
Chair elected from the National Assembly (Ms. W. Newhoudt-Druchen) and the Deputy Chair from
the National Council of Provinces (Mr D. D. Gamede). Even though the NCOP has 9 Members on this
Committee, they do not represent Provinces, and they are not appointed as party representatives either.
As mentioned on page 1 of this report, the Committee has experienced a number of problems in setting
itself up as a committee and in enabling itself to implement its mandate. The fact that it is a committee
covering three more or less separate categories of persons in society, suggest a sub group structure to
assist the Committee in dealing with these three categories adequately. The nature of its work is
crosscutting and this means that issues relating to youth, children and disabled persons are often
neglected in lieu of clearly defined operationally linked areas.
There is a weakness in scale as the scope of the work to be addressed is complex and large. For
instance, the Committee has to ensure that all legislation, with an emphasis on, or lack of emphasis on
Youth, Children and the Disabled, requires scrutiny. Policy on Youth, Children and Disabled Persons,
is often emerging and thus there is a lack of a consolidated framework within which to couch policy.
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There is a clear lack of prioritization, where budget allocation and programme focus is concerned. For
instance, a line department such as Housing should have an integrated housing plan, which takes into
account quality of life and equality of life issues for Youth, Children and Disabled Persons.
At the same time, the Committee itself has been unable to leverage key partners such as the NYC,
ORC and the OSD. The strategic placement of these Offices should enable the Committee to ensure
effective change with regard to its target groups.
The main challenges facing the Committee at present are:

Understanding the mandate and functioning of the Committee;

Scheduling of Committee meetings: It is difficult to ensure a quorum at Committee
meetings as a result of clashing memberships of Committees;

Developing a clear programme to guide the work of the Committee;

Developing a clear functioning structure for the Committee;

Utilising appropriate tools to exercise the oversight mandate of the Committee; and

Developing effective support mechanisms to facilitate the work of the Committee.
In view of these challenges, the Committee identified the need for Members of the Committee to
receive training and to define the needs, role and vision of the Committee that would enable it to
compile a comprehensive programme for 2005 and beyond. The Committee considered it important to
engage with representatives from the children, youth and disability sectors to gain insight into the
needs of these agencies and to align its programme with theirs. Thus, the stated objectives of the
workshop were to:

Review the Mission and Vision of the Committee;
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
Define the needs of the Committee to enable it to execute its mandate effectively;

Gain insight into the challenges and priority areas of the 3 agencies (namely, the ORC,
NYC, OSDP), with a view to forming strategic partnerships; and

Develop the Committee’s Programme for 2005 and beyond

The Programme will lead to a Committee Business Plan that will ensure that expenditure of
the Committee supports its key priorities and that mechanisms are in place to monitor the
achievements of targets and reporting to Parliament.
3.2
Presentation by Partners
The workshop was conducted by way of presentations by representatives from the 3 Programmes
relating to children, youth and disabled persons in the Presidency, as well as the House Chairperson of
Committees in the National Assembly. These were followed by breakaway commissions to discuss the
following issues relating to the mission of the Committee:

The areas of work to be prioritised in its programme.

Its structure.

The tools that will be applied.

Stakeholders to be partnered in the execution of its mandate, and specific Departments
to be targeted in its oversight work.
3.3
Presentation by Dr E Kornegay, Chief Director: Office of the
Rights of a Child
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The presentation focused on two broad aspects, i.e. the roles and responsibilities of the Chief
Directorate: Programmes in the Presidency and the National Framework for the Advancement and
Coordination of Children’s Rights Delivery in South Africa.
3.4
The Roles and Responsibilities of the Chief Directorate: Programmes
The Chief Directorate: Programmes oversees the work of the ORC, Office of the Status of Women
(OSW) and OSDP in the Presidency. Its mission is to provide effective leadership and support to these
Programmes. In turn, the Programmes are required to provide effective coordination to advance
Government’s strategies with regard to children, women, and people with disabilities.
Although the individual Programmes perform their own specific functions, there are some general
functions that have to be performed by all three Programmes. These are:
Providing a coordination framework;
Analyzing and developing policy;
Mainstreaming Government policy to infuse women, children’s and disability perspective into
the work of the 5 Director-General Clusters. The responsibility for mainstreaming women,
children’s and disabled considerations into the work of the 5 Director-General Clusters has
been divided between the Programmes, with each Programme targeting a particular
cluster/s;
Capacity building;
Advocacy;
Liaising and networking with civil society, international organisations and Government; and
Monitoring and evaluation.
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The Chief Directorate: Programmes reported that it is in the process of finalising the “10 Year
Review”, which examines Government’s performance with regard to gender, children and people with
disability. This report will cover the ORC’s achievements, challenges and the way forward. It will be
made available to the Committee soon after its launch. It was also reported that the mainstreaming of
children’s rights is had been achieved and the equality of access to opportunities is ongoing.
3.5
The Roles and Responsibilities of the National Framework for the Advancement and
Coordination of Children’s Rights Delivery in South Africa and the Restructuring
Process
This part of the presentation focused on the restructuring of the National Framework for the
Advancement and Coordination of Children’s Rights Delivery in South Africa. In terms of the current
Framework, the Programmes responsible for the advancement and coordination of children’s rights
delivery by Government are the ORC and the National Programme of Action Steering Committee
(NPASC). A number of challenges faced by these Programmes necessitated the restructuring of the
Framework to establish a holistic and coherent one to advance and coordinate children’s rights
delivery. These challenges include structural tension between the ORC and the NPASC.
The NPASC has a broad coordination mandate, but has no power of enforcement. It thus cannot
compel Departments to act. The ORC derives its mandate from International Instruments instead of the
Constitution. Its focus was thus on the implementation of international instruments (externally),
instead of focusing internally on the implementation of national policy in compliance with
international instruments. The ORC was not sufficiently empowered to monitor children’s issues, as
this was primarily done by the NPASC. The work of the ORC was limited to the Social and Criminal
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Justice Clusters, with the emphasis on welfare and protection. There was thus a need to expand its
mandate to include the Economic Cluster. It was difficult for the ORC and the NPASC to provide
substantive leadership in a transforming society; and civil society participation was inadequate to make
sufficient input.
The basic assumptions underlying the restructuring process are that the new Framework will:

Be a high level system that will drive the mainstreaming of children’s rights into policies,
programmes and funding;

Clarify the roles and responsibilities of component parts;

Address and facilitate the implementation of national priorities;

Provide clear guidelines of communication with Government; and

Provide substantive leadership on children’s rights.
3.6
The Pillars of Restructuring
Whereas the current Framework was based on 3 pillars (i.e. Government, Parliament and Civil Society,
the restructuring model is based on 4 pillars, namely:

Government: This includes the Presidency, National Advisory Council on Child’s Rights;
Provincial Advisory Councils on the Rights of the Child, Children’s Rights focal points in
Departments and Provincial Offices on the Rights of the Child located in the Premiers’
Offices and Local Government Focal points and Child ‘s Rights Advisory Committees.
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
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Parliament: This includes the Joint Monitoring Committee, Parliamentary Committees,
Cabinet Clusters and Ministers.

Civil Society: This includes national NGOs, Faith-based organisations, Academic
institutions; Student Bodies; Professional Associations; Advisory Coalition of Traditional
Leaders; CBOs and the South African Local Government Association (SALGA).

Independent bodies: This includes the Constitutional Court; other Courts; Public Services
Commission, Youth Commission; South African Human Rights Commission (SAHRC);
South African Law Commission and Public Protector
However, it is important to note that the Programmes only provide frameworks for the advancement
and coordination of children’s rights, while it is the responsibility of specific Director-General Clusters
to develop programmes to give effect to the frameworks.
3.7
Key functions of the ORC; Accounting Mechanisms and beneficiaries of the Revised
Children’s Rights Framework (CRF)
The main function of the ORC is the mainstreaming of Children” s rights to ensure that all matters
pertaining to children to the needs of children are adequately addressed, capacity building for children
is crucial to enable them to partake fully in the economy of the country, advocacy in government
structures to create awareness about children, delivery; policy work; performance coordination by the
various role-players to ensure all of the above and monitoring and evaluation to ensure compliance to
Government strategy and policies.
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The ORC nationally is the administrative body providing support and reports to the Minister, the ORC
in the Province reports to the Premier. The beneficiaries of the revised CRF are children, families and
communities; all spheres of Government, all component parts of the National Framework; the National
Advisory Council on Child‘s Rights; Specialists in Child‘s Rights field and ORC.
3.8
Proposed Solutions
The following issues were raised for consideration during the discussion following the presentation:
It is important that the restructuring of the ORC filters down to provincial level to ensure synergy
between national and Provincial Programmes. It is imperative to align the work of the ORC with the
National Priorities as enunciated by the President. In evaluating the performance of Departments, the
Constitution (section 28) provides the basis against which performance can be assessed. At the very
least, Departments’ policies and plans of action should be in line with the Constitution. There is a need
to devise a Technical Working Committee to speed up delivery. The Committee has to confer with
different Chief Directorates in the Presidency to get a better understanding of their work and priorities.
There is a collective document that is written by government departments and the NGO which
provides an analysis of the current situation in these sectors. A report on the National Plan of Action
will be forwarded to the secretariat for circulation to all Members of the Committee. The United
Nation’s Child Report will also be made available to the Committee. The working relationship
between the provincial office local government and the national office should be strengthened in
accordance with the restructuring process.
23 AUGUST 2005
3.9
PAGE: 579 of 644
Presentation by Ms. S. Matsepula, Director: Office on the Status of Disabled Persons
(OSDP)
Ms Matsepula explained that the vision of the OSDP is the belief that people with disabilities are
people first and then disability follows thereafter. South Africa is a democratic country, which
embraces the concept of inclusion and integration to enable, disable people to have equal and full
participation at all levels of society
The mission of the OSDP is to advance the equality of disabled persons in South African society by
coordinating the tasks of mainstreaming disability issues in all sectors of society, and facilitating the
process of government departments meeting their constitutional responsibility towards disabled
persons. It is the office’s responsibility to ensure that in each line function concrete steps are taken to
ensure that people with disabilities are able to access the same fundamental rights and responsibilities
as any other people. The issues of disability must be included and integrated in all government
development strategies, plans, programmes and projects. To this end, the functions of the OSDP are
to:

Mainstream disability through the Cluster process;

Facilitate, coordinate and monitor the implementation of the Integrated National Disability
Strategy;

Provide an advisory service to national and provincial line functions for the inclusion and
integration of disability into all policies and programmes; and

Ensure wide public education, as well as capacity building for both the disability movement
and Departments.
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The OSDP has identified key priority areas on which it will focus in line with Government’s priorities
as identified at the Government Lekgotla. These are:

Developing policy, to enable Departments to develop disability-inclusive policies;

Mainstreaming disability issues through the Director-General Cluster process;

Developing a monitoring and evaluation framework with disability specific indicators;

Coordinating the effective implementation of Government’s work with regard to disability;
and

3.10
Advocating Government’s strategic agenda through awareness raising.
Achievements to Date, Definition of Disability, OSDP Budget
The South African Government adopted the White Paper on INDS in November 1997, which is
premised on the social model of disability. The model, which is a human rights approach to disability,
places emphasis on the shortcomings of society and its inability to accommodate diversity instead of
viewing disability a welfare concern only. The INDS provides government and society with guidelines
that promote non-discrimatory development, planning, programme implementation and service
delivery. The implementation of the African Decade Programme for Disabled People led to the
establishment of a secretariat to run the Africa Decade programme. The office actively participated in
and on behalf of Southern African countries in the development of a proposed Comprehensive and
Integral International Convention on the Protection and Promotion of the Rights and Dignity of
Persons with Disabilities.
Government officials were trained to understand the rights of disabled persons and the implementation
of the INDS. The objective of this exercise was to create a skilled, equipped, motivated and
empowered critical mass of people to ensure delivery to disabled persons in all departments. The
training of trainees programme is an inclusion of the implementation of the INDS in the curriculum of
23 AUGUST 2005
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SAMDI. The office has successfully designed and completed a training manual that will assist
councillors with disabilities at local government level to function optimally. A book on the history of
the Disability Rights Movement in SA has been developed. The office convened consultations with
tertiary institutions to ensure the inclusion of skills to implement INDS in all universities curricula and
this resulted in the establishment of a disability study course at the University of Cape Town. The
course focuses on the promotion of human rights of disabled persons.
The office also facilitated the establishment of Disability Units within all provincial governments and
municipalities. Presently there are nine Provincial Disability Units that are established in the offices of
the Premiers and 28 local Government Disability Units in Municipalities. The largest number of 17 is
in Limpopo. A training manual, which will assist councillors with disabilities, has been designed and
completed to help them to carry out their duties in an efficient and effective ways. The education
awareness campaign that was developed and conducted by the office has led to the development of a
media toolkit that disabled persons will use to engage media. Most departments have awareness
programmes and activities in support of National and International Days for persons with disabilities.
The promotion of awareness for all employees with disabilities is one of the fundamental prerequisites
of creating empowerment and supportive environment.
The policy reference groups between the government departments and representatives of the disabled
persons head been convened and the purpose thereof was to develop disability sensitive policies in the
departments. The office succeeded in negotiating job creation targets for disable people in various
economic development sectors. The departments have been provided with advice on the employment
of disabled persons in the public service, equity plans have been developed through the employment
equity units in the departments with the view of including disabled person in the staff complements
and similar guidance have been given to parastatal and private organisations. The development of
23 AUGUST 2005
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capacity in organisations of disabled persons equipped them to undertake advocacy, organisational
development and project management programmes and to establish relations with organisation of
disabled persons in Sweden to promote the understanding of rights through a twinning programme.
The office successfully imitated a process on disability specific indicator for use in the Monitoring and
Evaluation Frameworks of government.
A cohesive disability sector in civil society with the
transformation of the other African Federal Council on Disability has been developed and enables all
various disability groupings to coordinate their activities in a unified way with role players within
government and in the private sector.
There is no definition on disability; the compromise is that a working draft definition was drawn. It is
an operational definition used presently, however a decision will be taken in a Cabinet meeting due to
take place in two weeks to see if it is an appropriate definition. The office was allocated R1 million
for the current financial year and this has not met all the requirements of the office. The OSDP is
looking forward to the help of the Committee for redress in this issue.
3.11
Challenges
Despite extensive work in fulfilling its mandate through its work with all spheres of Government,
parastatal and the general public, the OSDP faces a number of challenges that impact negatively on
service delivery. These include reliance on donor support: much of the work undertaken by the OSDP
is funded by donor support. The work is thus to a large extent influenced by donor specifications,
thereby distracting from implementing Government objectives; lack of capacity in terms of human
resources: at present, the OSDP has only 5 persons on its permanent staff establishment, 2 at Director
level and 3 at administrative level. In addition, 2 more people have been appointed through donor
23 AUGUST 2005
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support. This has resulted in work overload and staff burnout; lack of support from supervisors
internally (Presidency); and lack of support from National and Provincial Departments and Local
Government structures.
The OSDP proposed the following solutions to address these challenges:

Financial support to the OSDP should be expanded through the Medium Term Expenditure
Framework (MTEF) to reduce its dependency on donor support;

Support from supervisors should be improved. A process is currently underway to develop
clear roles and guidelines to ensure that approved systems are functional as they relate to
the Public Finance Management Act (PFMA);

Supervisors in the line function National and Provincial Departments and Local
Government structures must give practitioners the necessary support to enable them to
perform their duties effectively;

The process of recruiting staff in the National OSDP should be expedited, as undue delays
in the process impact negatively on service delivery in terms of the Programme’s annual
programme.
3.12
Issues for consideration
The following issues were raised for consideration raised during the discussion following the
presentation:

There is a lack of systems to monitor the appointment of people with disabilities in the
public service;

No standard definition of ‘disability’ exists. However, there is a working definition that is
used by the Departments of Health and Social Development as an operational tool. A
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Memorandum has been submitted to Cabinet to establish whether the working definition
constitutes and appropriate definition;

Disability issues are not integrated into the work of departments;

It is important that the Committee is informed of the budgetary constraints faced by the
OSDP timeously to enable it to provide input to the Minister of Finance when drawing up
the MTEF; and

The Committee should call on different departments to account to it with regard to
budgetary allocations for expenditure on disability issues.
3.13
Presentation by Mr. J. Mbalula, Chairperson: National Youth
Commission (NYC):
The NYC was established in 1996 through the National Youth Commission Act, Act 19 of 1996. It is
a statutory body of Government responsible for youth development within government and for
providing ongoing advice to government on matters of youth development.
The mandate of the NYC is to:

Set up appropriate youth policy instruments for the country;

Develop a comprehensive National Youth Action Plan for the implementation of the
Policy. The Policy covers 3 areas, namely, the role of the youth, the role of Government
and the role of civil society structures;

Develop mechanisms to redress the imbalances of the past;

Promote a uniform approach by all agencies of Government in terms of youth development;

Investigate appropriate programmatic responses to the challenges facing young people;

Prioritise resource allocation to youth affairs through Government; and
23 AUGUST 2005

PAGE: 585 of 644
Maintain close relations with similar bodies.
The NYC has identified key result areas for the implementation of the National Youth Policy, which
are:
Advocacy;
Lobbying;
Monitoring and evaluation;
Policy formulation and analysis;
Communication and outreach programmes; and
Research development on youth issues.
3.14
Key Focus Areas
The Commission’s work focuses on 4 key areas, namely:




Policy implementation and Influence
Profiling the Commission
Stakeholder Engagement and
International Relations
The office has to implement policy and influence stakeholders to ensure that all spheres of government
incorporate an approach to youth development envisaged in the national Youth Development Policy
Framework (NYDPF) and appropriate programmes. The coordination of state organs is aimed at
ensuring an integrated and inter-sectoral approach to youth development and to strengthen policy
research, development and analytic function thus integrating the participation of young people into the
mainstream economy of the country.
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The profiling of the Commission is aimed at encouraging the participation of the youth in decisions
that affect their lives. The office engages stakeholders in order consolidate strategies in society and at
repositioning itself through leadership enhancement. It is also part of the Commission‘s agenda to
include youth development in international relations.
3.15
Key Current Issue
The key current issue that the Commission is engaged in is the restructuring of the Commission to
create one national organisation that will ensure a unified approach by all youth development agencies.
This will include incorporating the Umsobomvu Youth Fund into the Commission.
3.16
Challenges and Improvements
The Commission reported that despite the existence of the National Youth Policy Framework, the
challenge remains to integrate youth development comprehensively into Government policies,
resources allocated to youth development are limited. There is also a need to explore how civil society
organisations working in the field of youth can be resourced. There is insufficient support for youth
development work; and it is critical for the Commission to devise a mechanism through which
Government Departments can be held accountable and to provide recourse to the Commission if
Departments do not deliver.
3.17
Issues for Consideration
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The following issues were raised for consideration:
It is important that youth development work filters down to reach the youth in deep rural areas as well.
A proposal was made that the Commission produce Compact Discs (CD’s) of its programmes for
distribution to those youth who do not have access to its programmes. At present, the work of the
Commission targets youth in higher education, youth in trouble with the law, youth in rural areas and
youth with disabilities. However, there is a need to include illiterate youth in the work of the
Commission to make them employable. For example, consideration could be given to taking such
youth into voluntary service in the police or military to develop and expose them to opportunities; and
the role of the Commission is always misunderstood, with the result that role-players undermine its
monitoring and evaluation role.
A National Youth Convention will be convened around September to evaluate policy. The Young
Farmers Programme is functioning and this has been made possible by the Department of Trade and
Industry Strategy on economic participation. The Land Bank contributed by injecting funds to the
programme. These programmes are running in the Free State, North West and Northern Cape. The one
in the Western Cape is on hold because of lack of funds. Mr Mbalula expressed the Commission’s
appreciation of the Hon. President, Mr T M Mbeki‘s visit to one of these programmes and that they are
functioning well.
The Commission will be hosting the National Youth Month in June and a guide with all these
programmes will be produced, it will also include access to matric results. Even though there is an
existing NYPF, the commission has to do an investigation on how best it can integrate youth
development. There is a need to inject funds to youth development; the NYPF support has to be
strengthened as it is currently under resourced. The reference point for this development will be the
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youth policy, departments will have to be told hold accountable and to this end the Commission
requests the assistance of the Committee to intervene.
3.18
Presentation by the Hon. Mr. GQM. Doidge, MP: House
Chairperson: Committees, National Assembly
The presenter made some general remarks with regard to the mandate of the Committee and the
challenges faced by it, and proposed certain solutions to address the challenges.
General remarks with regard to the mandate of and challenges for the JMC include:
Structure of the Committee
In terms of the Joint Rules, the Committee comprises Members of both Houses NA and NCOP, which
have different and separate programmes. Furthermore, the role and structure of the NA differs from
that of the NCOP. Consequently, scheduling of Committee meetings poses a challenge, as it is not
always easy to secure a quorum at such meetings. Although the Rules provide the framework of what
the Committee must do, the onus remains on the Committee to find creative ways in which to execute
its mandate.
The Rules of Parliament and the Public Accounts Committee (PA Committee) as a case study
The Rules of Parliament are not static. The JMC is at liberty to propose amendments to the Rules to
facilitate its work by submitting a proposal to the Joint Rules Committee. The Committee can seek
authorization from the Joint Rules Committee or by way of House Resolutions as per Joint Rule 16
(1a) and (1b i and ii) which stipulates that a joint Committee has such sub committees as are
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established by the Joint Rules; and may appoint a sub committee when there is provision for such
appointment in the Joint Rules; or authorised by the Joint Rules Committee or by resolutions adopted
in the Assembly and the Council. This will help the Committee to alter its modus operandi, adjust the
rules through the office of the speaker and to form sub committees and this will help it to function
optimally. The Committee will meet less frequently e.g. when it has to consider reports from
established sub committees. An example was given whereby the Public Accounts Committee
developed itself a working method. They had workshops on methodology and their report was tabled
in the House and it became a document of the House.
Scheduling of Committee meetings and reporting Mechanisms
The parent Committee might meet once a month or once a term. It can look at dynamic reporting
mechanism. It can report on its findings, on written instruments, it can respond to papers referred to it,
it can report on the work that it is doing and follow up on recommendations. The Committee needs to
establish a network for itself in the Presidency and identify its key partners. It is also important for the
Committee to have right venues for meetings. The issue of mainstreaming needs to be brought to the
Committee‘s Plan of Action.
Budget Cycle and relevant reports for the Committee
The Committee has to evaluate what it has achieved in the present budget cycle. The 10 year Report
and the Situational Analysis Report had been completed and are waiting permission for publication.
These documents will be available to the Committee soon after publication.
Legal Capacity for the Committee
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The Committee on Commissioning research can be guided e.g. by the office of the Right of a Child to
establish whether the Children’s Bill does address all that has to be there. On monitoring and
evaluating the international instruments the Committee can once they are ratified, monitor them as to
how our country complies with these instruments and follow up on them. The Committee will be given
legal advice to help with the monitoring and evaluation of these instruments.
International Conferences, International and Provincial Study Tours
The Committee can go on international exposure visits twice in a five-year term according to the new
policy of Parliament. There is no limit to provincial fact - finding missions, except that these can only
take place when Parliament is not in session. The executive has to pay if the Committee is invited to
participate in the UN and a delegate can be sent to those conferences.
Departmental Strategic Plans and Annual Reports
The Committee was advised to look at the strategic plans of the departments, their annual reports and
to work closely with the Presidency e.g. the PA Committee set up Wednesdays for hearings with the
Director – Generals. The departmental strategic plans sets out performance measures and targets and
annual reports show how appropriated funds have been used to implement plans, this then gives an
indication on whether performance has been acceptable and whether funds were used for the intended
purpose.
Specialised support for the Committee (Subject Specialist)
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Apart from procedural and general administrative support, the Committee requires a full – time subject
specialist who would maintain a register of relevant international commitments, advise on the
substance and nature of such commitments, scan bills and tabled papers to alert the Committee to
issues requiring consideration, maintain a data base of academics, Non Governmental Organisations
and other interested groups which could provide a resource base and draft reports and
recommendations. The services of the researchers could still be used to undertake specific research
projects as may be required from time to time.
Relationship with Chapter 9 Institutions - Chapter 9 (section 181(1)) of the Constitution establishes
various institutions to aid and complement the work of Parliament in overseeing the work of the
Executive. These institutions are called State Institutions Supporting Constitutional Democracy. They
are independent and impartial, able to exercise their powers and perform their functions without fear or
prejudice and are subject to the Constitution and the law only. They have the following two roles in
relation to Parliament: (i) they should be seen as complementary to Parliament’s oversight role as they,
together with Parliament, act as watchdog bodies over the Government and Organs of State; (ii) the
Constitution renders them accountable to the NA. Section 181(5) of the Constitution imposes a duty
upon them to report on their activities to the Assembly at least once a year. They therefore serve as a
support and aid to Parliament in its oversight function by providing it with information that is not
derived from the Executive. The Committee should thus develop cooperative relations with these
institutions.
Oversight Tools
There are many tools that can be applied by the Committee to exercise its oversight function. These
include the following:
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(i) Briefings, Hearings and Presentations
(ii) Holding hearings with specific departments
(iii)State of the Nation Address (SONA) as a reference
(iv) The Estimates of National Expenditure (ENE)
(v) The Budget Speech
(vi) Interrogate Departmental Budget Reports
(vii)
Writing letters where necessary
(viii)
Visits to the Presidency
(ix) Be familiar with the Strategic Plans of Departments and Annual Reports
(x) Peruse all reports from the three sectors e.g. the State of the National Youth Report
(xi) Interaction with relevant Departments, Parliamentary Committees and Chapter 9
institutions
(xii)
Interrogate Parliamentary Process Report e.g. Situational Analysis Report and the 10
Year Review Report among others.
(xiii) Utilising the Constituency period fruitfully
(xiv)
Provincial fact finding missions and International study tours
However, the challenge that exists for the JMC is to devise a way in which to utilise the existing tools
effectively.
Committee Reports
Committees are not autonomous of the House, but must report to the House on its activities. Such
reports can stem from the referral system, or from Committees’ proactive work. However, Committees
do not report regularly enough
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The presenter proposed the following solutions to address the challenges faced by the Committee:

Focus groups - It was suggested that the Committee organise its work into smaller working
groups to focus on the different areas covered in its mandate. The work of the smaller
groups could feed into the work of the full Committee. For example, if a Department is
summoned, it could be done under the banner of the full Committee. The focus groups
should find creative ways of dealing with the subject matter assigned to it by:
o Developing a critical understanding of issues relevant to their subject area;
o Keeping track of debates in their subject area;
o Commissioning research, monitoring, engaging and reporting on target areas
identified for their subject area; and
o Tabling progress reports and reporting to Parliament on a regular basis on progress
made.
The development of smaller focus groups could assist in alleviating the problem of establishing a
quorum at the meetings of the Committee.

Revision of meeting times
It was suggested that the Committee review its meeting times so that it meets less
frequently, thereby avoiding the problems caused by clashing memberships of Committees.

Networking
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The Committee was encouraged to establish a network of partnerships to facilitate its work,
by developing dynamic relationships with institutions or organisations involved in the area
of children, youth and persons with disabilities.

Building capacity
Once the Committee’s strategic plan is developed, it should identify the resources that will
be required to meet the objectives outlined in the plan.

Mainstreaming
The Committee should find ways to input into the work of other Committees to ensure that
issues relating to children, youth and persons with disabilities are mainstreamed into the
work of Committees.
3.19 Possible Areas of Intervention
The purpose of this section is to provide an overview of the functions and main challenges
highlighted by the respective presenters, as well as issues for consideration emanating from the
discussions that followed the presentations. A number of possible areas for intervention by the
Committee emerged from the presentations.
These include:

The Committee was challenged to encourage other Parliamentary Committees to
mainstream issues relating to children, youth and disabled persons into their work by
requesting departments to include information on such issues in their briefings. This will
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stimulate Departments to report holistically on these areas, as it is impossible for the
Committee to target all Departments single-handedly;

A proposal was made that, as part of its oversight work, the Committee should follow
up with the relevant departments on the implementation of recommendations contained in
the report of the Task Group on the Sexual Abuse of Children;

The Committee should interrogate departmental budgets with a view to monitoring the
allocation of funds for issues relating to children, youth and disabled persons;

The Committee was called upon to assist the Programmes in calling Departments to
account, as they do not have the power to summon Departments;

The NYC requested the assistance of the Committee regarding funding for youth
development. The Committee is called upon to find out from departments whether funding
for youth development is part of their agenda, a similar request came from the OSDP and

The Committee should monitor and, where possible, provide input into processes
currently being undertaken by the 3 Programmes.
3.20
The Strategic Planning Process
The Committee agreed to be more strategically focused in order to fulfil its mandate. The sessions for
the second day went into more detail regarding the 3 areas, namely, Youth, Children and Disabled
Persons.
3.21
Break-Away Group Discussions
In an attempt to facilitate the process of developing a programme for the Committee, the workshop
undertook 2 breakaway sessions. Deliberations during the breakaway sessions were aimed at
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developing more specific direction for the Committee programme in terms of Children, Youth and
Disabled Persons.
The aim of the first breakaway session was to brainstorm ideas around the development of a Mission
Statement for the Committee. In developing the Mission Statement, groups were tasked with
addressing questions relating to:
Who the Committee is;
The purpose for the existence of the Committee;
How the Committee fulfils its role; and
Who the Committee serves in fulfilling its role.
During the second breakaway session, groups were tasked with generating ideas around the following
aspects of the Committee’s work:

Identify 5 priority areas per sector;

Identify the Departments to be targeted;

Create a structure for the execution of the tasks of the Committee;

Identify the key partners that will assist the Committee in the execution of its mandate; and

Identify tools and support systems that the Committee will use in the execution of its
mandate.
3.22
Core Competences for the Committee
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The following core competences were proposed for the Committee:

The ability to exploit existing partnerships;

The ability to learn lessons from other committees;

The ability to translate these lessons into working solutions for the Committee;

The ability to actively track and monitor key focus areas within a determined timeframe;
and

3.23
The ability to impact on key focus areas in partnership with Offices in the Presidency.
Developing the Vision
The Committee members were divided into 3 groups and were asked to assess and comment on the
current vision of Parliament. Hereafter each group crafted a Mission statement for the Committee. The
Committee felt that the Vision of Parliament should be scrutinised.
The current vision of Parliament is:
“To build an effective peoples’ Parliament that is responsive to the needs of the people and that
is driven by the ideal of realising a better quality of life for all the people of South Africa.”
Responses ranged from acceptance of the Parliamentary Vision as is, to amendment of the vision in the
following ways:
(i)
“We the elected representatives of the people, who through the Peoples Parliament, the
JMC in particular, monitor and evaluate the responsiveness of the government and
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relevant state institutions supporting democracy to the needs and aspirations of the
sectors in realizing a better quality of life and status of youth children and disabled
persons.”
(ii)
“We exist for the protection, development and integration of Youth Children and
Disabled Peoples’ issues”.
3.24
The Committee’s Mission
The Committee felt that the crafting of a Mission Statement was crucial, as it would ensure clarity of
purpose. The following drafts of a Mission Statement read as follows:
(i)
“(We
are
monitor
a)
the
Joint
Committee
issues
of
Youth,
ensuring
assigned
Children
Disabilities
by
Commissions,
and
mandate
with
specific
reference
people
living
with
disabilities
other
to
that
to
and
all
stakeholders
highlight
People
by
with
Departments,
deliver
Youth,
and
on
their
Children
forming
and
mutually
beneficial partnerships with the above entities”.
(ii)
“(We will achieve our objectives) By effectively monitoring and evaluating government
programmes on an ongoing basis and by regularly reporting to the Peoples Parliament
on the compliance and progress of the implementation of instruments, programmes and
service delivery to each of the sectors.”
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(iii)
PAGE: 599 of 644
“Through diligence, partnership and continuous engagement, the JMC on Youth,
Children and Disabled Persons will:

Monitor the implementation of policy, strategy and programmes

Identify and ensure that corrective recommendations are acted upon

Report regularly

Compel state organs to deliver on their mandate and build a culture of accountable
co-operation
3.25
The Strategic Objectives for the Committee
The Committee recognizes that if it is to be effective, it would have to highlight and address each issue
relating to Youth Children and Disabled People in each piece of legislation, in each Departmental
Programme and in each Departmental Budget. It would also have to incorporate issues emanating from
participative processes in communities, and from organised associations for Youth Children and
Disabled People. Given the size and capacity of the Committee, it is impossible to monitor all these
aspects of its mandate comprehensively and adequately.
For the purposes of impacting on key portfolios, the Committee Members were divided into 3 sub
groups, namely, Youth, Children, and Disabled Persons. These subgroups were asked to identify 5
strategic objectives per group and to link the strategic objectives to actions for the Committee. The
following strategic objectives and actions were identified by sub groups focusing on Youth, Children,
and Disabled Persons.
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3.26
PAGE: 600 of 644
Youth
Strategic Focus Area
Action for Committee
Target
Departments
Budget Oversight
Interrogate Departmental
Budgets with a view to
monitoring the allocation of
funds for issues relating to
youth
All
Mainstreaming Strategy
Ensure that mainstreaming
To be assigned
strategy is applied to all
Departments (focus on
Target Departments for this
financial year)
National Youth Service
HIV and AIDS and TB
Ensure that Youth have

DPSA
access to bursaries in

Department of
Science and Technology as
Finance
per the national commitment 
Department of
of the Minister of Finance
Education
Ensure that grants for child

headed households are
distributed effectively
Social
Development

Department of
Health
Support to Programmatic
Ensure Youth are trained in
• Agriculture and
23 AUGUST 2005
PAGE: 601 of 644
Work of Various
Agribusiness and as
Departments
emerging farmers
Website
To be assigned
Youth Toll Free Line/ Youth
To be assigned
Land Affairs
Information Guide/ Youth
Information Services
Ensure employment of

Public works
Participation/Relationships
Youth through the

DOL
with Umsobomvu Youth
Extended Public Works

DWAF
Fund
Programme

DEAT
DOL placement of

Agriculture and
Economic


Learnership candidates
Land Affairs
–% of jobs created
focused on youths

Ensure Youth
entrepreneurship with a

DTI
focus on Youth Co-ops

DEAT
(Agri and Trade and
Industry)

Ensure that Youth are
absorbed in franchises
and that training is
(Provincial)

DEAT(National)
23 AUGUST 2005
PAGE: 602 of 644
provided

DTI

DEAT
(Provincial)

Local Government
To be assigned
Capacity Building

DEAT(National)
Ensure access for Youth
DPSA
on Bursaries focusing on
DOF
Science and Technology
Department of
as per the national
Education
commitment from the
Minister of Finance

Ensure access to
Learnerships (5% of

DPSA
each Departments

DOL
establishment)
3.27
Children
As protection of the vulnerable includes children, the Committee identified the media and its impact on
the young as a key area to be monitored.
Strategic Focus Area
Action for Committee
Target
Departments
23 AUGUST 2005
Budget Oversight
Mainstreaming Strategy
PAGE: 603 of 644
Interrogate Departmental
Budgets with a view to
monitoring the allocation
of funds for issues relating
to children
Sport
Ensure that mainstreaming
All
Social Development
DOE
DOL
strategy is applied to target
departments
Media
Safety in Schools
Ensure that Media Houses
Communications
are screening programmes
ICASA
for Violence, Language,
BCCSA
Nudity, Sex and Prejudice
DOE
Ensure that issues of safety
DOE, DOL, Safety
and security in schools are
and Security, SAPS,
dealt with at a
Sport, Presidency
policy/implementation
level
Recreational Services
Ensure appropriate
Sport, Arts and
recreational services are
Culture, DOL,
developed for Children
Safety and Security,
SAPS, Local
Government
(SALGA),
Presidency
23 AUGUST 2005
PAGE: 604 of 644
Interface with civil society
To be assigned
Early Childhood
Ensure that resources and
DOE, DOL, DOH,
Development (ECD)
policy development are
Social Development,
assigned to ECD
Presidency
Ensure that policy gaps are
DOE, DOH, DOL,
identified and policies are
Sport, Arts and
developed
Culture, Presidency
Ensure that a database is
STATS SA, DOE,
developed and updated for
DOH, Safety and
tracking and monitoring
Security, SAPS,
issues affecting Children
Presidency
Ensure that all legislation
All
Policy Gaps
Database Development
Legislation
affecting children is
monitored for compliance.
Ensure that public
participation processes are
complied with respect to
the processing of
legislation
Children’s Day
Ensure that Programmes
are included in all
Department’s plans with
regard to celebratory events
All
23 AUGUST 2005
PAGE: 605 of 644
such as Children’s’ Day
Follow up on Reports
Ensure follow up with the
Refer to Report for
relevant Departments on
target departments
the implementation of
recommendations
contained in the report of
the Task Group on the
Sexual Abuse of Children.
3.28
Disabled Persons
The principle of “Nothing About Us, Without Us” is the principle that needs to be reflected in all
aspects of Departments’ strategies and policies.
Strategic Focus Area Action for Committee
Target Departments
Budget Oversight
Interrogate Departmental
budgets with a view to
monitoring the allocation of
funds for issues relating to
disabled persons
All
Presidency
Ensure unnecessary delays in
Committee to address
policy implementation are
directly
addressed
Mainstreaming
Ensure that mainstreaming
Strategy
strategy is applied to target
All
Departments
Transport
Ensure meaningful accessibility
Transport
23 AUGUST 2005
PAGE: 606 of 644
to public transport and related
Public Works
facilities
DPSA
DOL
Health
Ensure the following Health
DOH
Care priorities are focused on:
DOE
Access to healthcare
Early childhood development
for children with disabilities
Disability detection and
assessment
Rehabilitation
Social Development

Ensure drafting of a
Social Development
definition and assessment of
disability

Ensure adequate provision of
social grants for poverty
alleviation
Trade & Industry
Labour
Ensure development of an
DTI
Economic Participation
DOL
Programme
DOE

Ensure Skills development is DOE
implemented

Ensure Employment Equity,
Basic Conditions of
Employment, Code of Good
23 AUGUST 2005
PAGE: 607 of 644
Practice are applied
Education
Housing
Ensure access to (inclusive)
DOE
education and school feeding
Social Development
Ensure access to construction
Housing
Ensure access to accessible
accommodation and
ownership
Communication


Ensure access to
Communication
broadcasting and
DOL
communication
ICASA
Ensure access to information
BCCSA
technology

Ensure skills development
and employment
opportunities in broadcasting
Public Service

Ensure implementation of
DPSA
the Presidential review with
regard to Batho Pele

Ensure implementation of
Community Development
Workers
Science &
Ensure promotion and
Science and
Technology
development of Braille as an
Technology
augmentative tool for readers
who require it
23 AUGUST 2005
Arts & Culture
PAGE: 608 of 644

Ensure development and
Arts and Culture
promotion of sign language

Ensure economic
development and skills
development through the
Arts
Public Works
Ensure accessibility to Public
DPSA
Buildings and services
Provincial and Local
Ensure access to service delivery Local Government
Government
and implementation of Indigent
(SALGA)
Policy
3.29
The following key issues were highlighted by all the groups:

Unnecessary delays in the development of programme policy in the Office of the Presidency;

An input has been made to the MTEF to assist with the needs of the OSDP. A suggestion was
made that tax should be directed to the OSDP and contribute to disabled persons in the
economy;

Inter-Departmental collaboration is weak;

Line Department responses with regard to Youth, Children and Disabled Persons are not
forthcoming. In 2001, only 3 Departments responded to Disability alignment;

Staff who advocate for Youth, Children and Disabled Persons issues are normally at a low level
in the organisation. This is not aligned to the national priority provided by the placement of
Youth, Children and Disabled Persons in the Presidency;
23 AUGUST 2005

PAGE: 609 of 644
The monitoring of Provincial Departments was raised as a problem as there is currently no link
with the Provinces;

A lack of an overall communication strategy was highlighted by all three groups;

The lack of a link between the work of the JMC QLS of Youth, Children and Disabled Persons
was raised with regard to how Committee work is taken to the Constituencies;

The need was raised for identifying national priorities; and

The National Plan of Action is being updated. The issue raised here related to the need for a
Provincial Plan of Action to enable holistic oversight of issues relating to Youth, Children and
Disabled Persons.
3.30
Operating Principles
It was suggested the following principles be adopted to ensure effective delivery on the mandate of the
Committee:

Dedicated membership of the Committee

Scheduling of meetings to avoid clashes and provide adequate resources for the Committee
to do its work; and

3.31
Scheduling to facilitate Committee sub-group effectiveness
Support
The Committee requires a much more comprehensive and focused support system to fulfil its mandate.
Therefore, it must be very clear on its deliverables so that the appropriate support is provided to it. The
existing support structure is able to provide this support to a limited degree. However, this is set to
23 AUGUST 2005
PAGE: 610 of 644
change as an investigation is currently being commissioned to propose a robust support structure for
Committees in Parliament.
A proposal was forwarded for a Committee Support Coordinator to
oversee
Secretarial
support,
Research
support
and
Administrative
support.
In terms of systems and procedures, Members felt that current support provision is not adequate with
regard to document management, the production process, prioritisation, research, meeting and hearing
preparation, follow-through and staff management.
The proposals regarding more effective support for this Committee included:

A shared support structure in which legal, research and information services work as a
technical support team.
Integral to the success of this support team, the Committee has to:
3.32

Have regular briefings with the team

Assist with the scrutiny of issues

Track issues with the team

Assist in developing tools for use by the team

Identify emerging issues for the benefit of the Team and the Committee
Method of Work
23 AUGUST 2005
PAGE: 611 of 644
The Committee has to decide on a range of tools to use to manage its oversight function. Amongst
these are:

Tools used in plenary (questions, motions, statements, debates);

Tools used as part of the oversight function (public hearings, site visits); and

Tools used in ensuring the legislative process (tracking of legislative process, briefings).
The Committee needs to redefine its operating structure and systems to enable it to fulfil its mandate
with regard to its role of oversight and monitoring. According to a discussion document on the
Mandates and Functioning of Joint Monitoring Committees, it was found that the Committee’s
monitoring role is specifically related to “Government’s commitments”. Further, the Committee as a
Forum of Parliament would be expected to focus its role on the national sphere of government (in
accordance with the principles of co-operative and intergovernmental relations in the Constitution,
Chapter 3) 4
What this means for the Committee is that it has to monitor and track national policy, programmes and
budgets. The Committee’s mandate is specific and multi-sectoral covering all national Departments
and Organs of State.
However, practical issues relating to the quality of life and status of Youth, Children and Disabled
Persons are often experienced directly at community or provincial level. It has been suggested that the
provincial legislatures establish similar committees to monitor compliance on a provincial level. This
would allow for meaningful interaction with the Committee and would result in the Committee having
a comprehensive “window” on national and provincial competences concerning Youth, Children and
Disabled Persons.
23 AUGUST 2005
PAGE: 612 of 644
Bills that are brought before Parliament may respond to particular policy directives affecting Youth,
Children and Disabled Persons directly or indirectly. The Committee should therefore scan all Bills for
impact on the Quality of Life and Status of Youth, Children and Disabled Persons. The Committee
would have to engage with relevant Committees on any issues of concern in a Bill.
In monitoring progress it would also engage with specific Departments on the implementation of
relevant provisions (affecting Youth, Children and Disabled Persons) when Bills are enacted.
The Committee can on its own initiative also scan departmental reports and other papers that are
tabled.
As a basis for carrying out its role, the Committee should compile a register of international
commitments entered into by government.
In exercising its functions, the Committee has agreed, together with the Office of the Presidency, in
particular with the (ORC), (YC), and the (OSDP), to engage in a more constructive manner so that the
Committee might fulfill its mandate more effectively.
3.33
Meetings and Scheduling of Meetings
One of the difficulties experienced by the Committee was the effective scheduling of meetings and the
availability of Members for these meetings.
By virtue of being joint structures, the Committee has difficulty in scheduling meetings to
accommodate the activities and programming of both Houses. A schedule was developed by the
23 AUGUST 2005
PAGE: 613 of 644
previous Chairperson of Committees in the NA, in which it was agreed to set aside Fridays for Joint
Monitoring Committees. This was not successful as Committee members still experienced clashes with
NCOP meetings scheduled for Fridays and Members were also unavailable due to other commitments.
The current situation requires creative planning and scheduling to deal with this problem. It was
suggested that meetings be planned in advance and placed on the Order Paper and that Members
prioritise Committee meetings.
In addition, the Committee should make use of an integrated electronic scheduling system to facilitate
easy access and information sharing. The Committee could then schedule meetings at short notice to
scan Bills, for instance, as it would have an overall view of all meetings scheduled.
3.34
Committee Views
The Committee resolved that it should strengthen its ties with all relevant departments by working
closely with Director-Generals and all relevant Committees in Parliament, tracking all legislation that
has a direct bearing on the Committee. This will be done by deploying one or two representatives in
these meetings, ensuring that matters affecting children, youth and disabled persons are properly
addressed and attended to prior the finalization of such legislation.
The Committee acknowledged that unemployment is global problem and advised that youth can do
voluntary services e.g. in police or military service for them to learn. The Committee has to hold
briefings, hearing of evidence and write letters where necessary and to solicit research capacity form
the office of Dr Gabriel and in the office of legal advisors within Parliament. The Committee can also
write letters to SALGA and to Provinces to establish on how issues are mainstreamed. The Committee
23 AUGUST 2005
PAGE: 614 of 644
acknowledged that the NCOP would have a more dynamic interaction with Provinces. Furthermore in
future engagements, the Umsobomvu Youth Fund should appear before the Committee to brief it on its
functions and progress and problems if there are any. It should have a similar working relationship
with the other three sectors.
The Committee has to improve on communication, there is a need to take these matters beyond
Parliament and the society needs to be informed in a manner that would make them really understand
issues. The Committee needs to have a database e.g. on all the reports that come to it by liaising with
the Minister Pahad’s office, source out information on Budget Vote1 e.g. establish the role of the
Committee in the budget process. It is the view of the Committee that the creation of subcommittees
would curtail absenteeism in meetings, which is caused mainly by the clashes of meetings among other
reasons.
4.
RECOMMENDATIONS
The Committee made the following recommendations:

Subcommittees should be formulated and the Committee has to elect conveners and agree
on the functional areas of those committees, targeting priority areas that they have to cover.
These subcommittees have to find creative and effective ways of researching areas of
interest that are relevant to their theme by using the right tools e.g. strategic plans of
relevant departments, budget speeches and by referring to the State of the Nation Address
content.

The Committee can propose amendments through available channels to the Rules
Committee.
23 AUGUST 2005

PAGE: 615 of 644
The parent Committee should meet once a month or once a term to deliberate and finalise
the business of the subcommittees or to consider reports of the work of its subcommittees.

The subcommittees would meet at times convenient for all members of that particular
subcommittee. The convener will work with the Chairperson, the Deputy Chairperson and
the Committee Secretary to ensure the smooth running of the process. The subcommittee
meetings should be advertised in the order paper.

Both the Chairperson and the Deputy Chairperson should be present in all the
subcommittees whenever they convene.

There should be a standard format of reporting (a Dynamic Reporting Mechanism)

The Committee should get reports of the Employment Equity Act and Skills Development
Act among other relevant legislation to establish the extent to which the Department of
Labour managed to address matters affecting the development of Children, Youth and
Disabled Persons.

The Committee requires a Subject Specialist that will help the Committee to fulfil its
mandate

Reciprocal communication – inter-sectoral, inter-departmental and inter-governmental
collaboration has to be strengthened, the Committee should invite relevant departments,
relevant sectors to give an account of their respective budgets on disability, youth and
children. It can also invite or write letters to the communities or local government to check
on the level of support given for the projects and programmes aimed at the improvement of
quality of life and status of children, youth and disabled persons.

It is critical for the Committee to call Disability Units to account on their budget so that the
Committee can make a determination on whether the money allocated to them is enough or
not enough for these units to function optimally.
23 AUGUST 2005

PAGE: 616 of 644
The Committee has to look at the programme of the Medium Term Expenditure Framework
(MTEF), hold discussions with the MTEF, be aware of the its time frames and work
according to the cycle of the MTEF so that it can be better positioned to raise issues
affecting its work timeously.

5.
The Committee would report to both Houses on the work that it is doing
CONCLUSION
The Committee could not formulate its programme for 2005 to 2006 due to the work that members had
to cover within the two days of the strategic planning workshop. It was important for the Committee to
first wait for the report that would emanate form the workshop in order to come up with a
comprehensive programme. The Committee agreed to hold a follow up workshop for this purpose. The
Committee took a resolution that it would report to both Houses on its work and follow up on its
recommendations by checking the implementation thereof
6. APPENDAGES
WORKFLOW, OPERATING MODEL, STRUCTURE AND INTEGRATED
OVERSIGHT MODEL
The following diagrams present a workflow, an operating model, and a structure, and an integrated
oversight model for the Committee.
JMC ON IMPROVEMENT OF LIFE AND STATUS OF CHILDREN, YOUTH,
CHILDREN AND DISABLED PERSONS WORKFLOW
International conventions
Provincial
Monitoring and
23 AUGUST 2005
PAGE: 617 of 644
23 AUGUST 2005
PAGE: 618 of 644
Designed by Consultancy In Session
International Conventions inform the policy and strategy positions with regard to Youth, Children and
Disabled Persons. The Presidency houses Offices representing Youth, Children and Disabled Persons.
Oversight of the Executive is enabled through Departments, which are responsible for governance,
management and implementation. Amongst others, the Committee monitors and tracks Legislation,
Programmes and Budgets of Departments for compliance with the rights of Youth, Children and
Disabled Persons.
JMC ON IMPROVEMENT OF LIFE AND STATUS OF CHILDREN, YOUTH,
AND DISABLED PERSONS OPERATING MODEL
23 AUGUST 2005
PAGE: 619 of 644
Constitutional
Mandate
v
Strategy
Strategy
Mission
v
Strategic focus
and Priorities
Operating
Operating
model
model
Strategic planning
Strategic planning
•Key partners (Service agreements)
•Key partners (Service agreements)
•Key
•Keyfunction
function(Oversight
(Oversightfocus:
focus:Tracking,
Tracking,Monitoring)
Monitoring)
•Key focus areas for year:
•Key focus areas for year:
-Youth
-Youth
-Children
-Children
-Disabled
-Disabled
Structure
•Organisational design structure
-JMC + 3 sub committees
Systems
•Programme (strategic objectives + activities + timeframes)
•Reporting systems
Committee
Committee
Delivery
Delivery
-(Internal JMC + 3 sub committees)
-Partners in office of President
-National oversight
-Provincial interest
Support
Administration
Legal
Research and Information Services
23 AUGUST 2005
PAGE: 620 of 644
Designed by Consultancy In Session
The strategic planning process for the Committee is based on the Constitutional mandate of the
Committee. Its Vision and Mission are its strategic statements of intent.
The Operating Model, consisting of an appropriate organizational design structure, systems
(Committee Programme and reporting systems) and Committee support, will ensure successful service
delivery.
23 AUGUST 2005
PAGE: 621 of 644
JMC ON IMPROVEMENT OF QUALITY OF LIFE AND STATUS OF
CHILDREN, YOUTH AND DISABLED PERSONS STRUCTURE AND SUB
GROUPS
JMC
•Chair
•Deputy Chair
WorkingGroup
Group
Working
WorkingGroup
Group
Working
WorkingGroup
Group
Working
Chair/Dep Chair
Chair/Dep Chair
Members
Members
Chair/Dep Chair
Chair/Dep Chair
Members
Members
Chair/Dep Chair
Chair/Dep Chair
Members
Members
Partners
Partners
Partners
Partners
Partners
Partners
Ch 9 Institution
Ch 9 Institution
HRC
HRC
SADCC
SADCC
Civil society
CivilStats
society
SA
Stats SA
NYC
NYC Council
SA Youth
SA
Youth
Council
DTI portfolio
com
DTI portfolio com
DOL portfolio com
DOL portfolio
com
DYSA
DYSA
OSDP
OSDP
SAMDI
SAMDI
CSIR
CSIR
Telkom foundation
TelkomStats
foundation
SA
Stats SA
Focal
points
Focalpoints
Disabled:
Disabled:
Convenor
Convenor
Focal
points
Focalpoints
Youth:
Youth:
Convenor
Convenor
Focal
points
Focalpoints
Children:
Children:
Convenor
Convenor
23 AUGUST 2005
PAGE: 622 of 644
Designed by Consultancy In Session
The structure for the Committee is as follows:

A core committee consisting of 24 fulltime Members and 10 alternates;

A convenor for each of the 3 sub-groups namely, Youth, Children and Disabled;

A Working group consisting of selected Members. The Chair or Deputy Chair rove within
these groups;

Focal Points to streamline Committee delivery as mandated; and

Partnerships with relevant institutions to enhance strategic impact
of the Committee.
23 AUGUST 2005
PAGE: 623 of 644
JMC QUALITY OF LIFE AND STATUS OF YOUTH, CHILDREN AND
DISABLED PERSONS INTEGRATED OVERSIGHT MODEL
Gather info
Oversight
Process
Info
+
Presidency
Hearings
Departmental
ORC
OSDP
Product
Referral for
Solution
Ch 9
Institution
YC
Visits
•Gaps
•Challenges
•Solutions
•Register of
International
commitments
JMC
JMC
Initiatives
House
Referrals
Support
(internal + external)
Sub Group
Children
Sub Group
Youth
•House (NA,NCOP)
•Relevant committee
•Executive
Sub Group
Disabled
Support
(internal + external)
Support
(internal + external)
Support
(internal + external)
23 AUGUST 2005
PAGE: 624 of 644
There are various ways in which oversight takes place. Amongst these are:

Departmental Hearings;

Visits (National and International);

Committee initiatives; and

Referrals of reports from the House(s).
The information gathered during this process is evaluated, monitored and tracked by the Committee in
partnership with the YC, ORC and OSDP, as well as other related role-players. The oversight function
23 AUGUST 2005
PAGE: 625 of 644
is active when challenges and gaps are identified and solutions are defined and channelled to the
appropriate source.
The workshop resolved that:
The breakaway sessions were useful in mapping the Committee’s direction with regard to
children, youth and disabled persons, but more work will be required to develop a
comprehensive work plan for the Committee;
The Committee will have a follow-up meeting (possibly in the form of a workshop) to develop
its programme, based on information assembled during this workshop; and
The interaction between the Committee and the 3 Programmes in the Presidency must be
significantly enhanced.
2.
Report of the Ad Hoc Joint Committee on Amendment Regulations to Public Funding of
Represented Political Parties Act, dated 12 August 2005:
The Ad Hoc Joint Committee on Amendment Regulations to Public Funding of Represented
Political Parties Act, having considered draft amendment regulations tabled by the Minister for
Justice and Constitutional Development on 22 July 2005, referred to it, recommends to the
President, in terms of section 10(1) of the Public Funding of Represented Political Parties Act,
1997 (Act No. 103 of 1997), that the said regulations be amended to read as follows:
23 AUGUST 2005
PAGE: 626 of 644
SCHEDULE
Definitions
1.
In this Schedule "the Regulations" means the regulations published under
Government Notice No. R 117 of 20 November 1998.
Amendment of Regulation 5 of the Regulations
2. Regulation 5 of the Regulations is hereby amended—
(a)
by the substitution for subregulation (1) of the following subregulation:
"(1) Subject to subregulation (3), all allocations to which a political party is entitled
as determined in terms of regulations 3 and 4, must be paid to the political party in
question in four equal instalments, each within three months of the previous payment.
The first instalment must be paid within four weeks of the beginning of the financial
year in question."; and
(b)
by the addition of the following subregulation:
"(3) (a) The Commission must, within ten days after the date on which the Speaker of
a legislature has published the notice contemplated in item 5(3) of Schedule 6A to the
Constitution, re-allocate in accordance with the provisions of regulations 3 and 4, as the
case may be, fifty (50) per cent of the total amount of funding determined in terms of
regulation 2(1) for the financial year in question to the political parties that, at the
expiry of the period referred to in item 5(3) of Schedule 6A to the Constitution, qualify
for the allocation of moneys from the Fund in terms of section 5 of the Act.
23 AUGUST 2005
PAGE: 627 of 644
(b) All allocations to which a political party is entitled in terms of paragraph (a), must
be paid to the political party in question in two equal instalments. The first instalment
must be paid within the first fifteen days of October and the second instalment must be
paid within the first fifteen days of January of the financial year in question.".
Amendment of Regulation 8 of the Regulations
3.
Regulation 8 of the Regulations is hereby amended by the substitution for
subregulation (2) of the following subregulation:
"(2) The information required for the purposes of subregulation (1) must be
furnished to the Commission—
(a)
by the accounting officer referred to in section 6(1) of the Act within three months
after the end of the financial year in question; or
(b) in the case of a political party contemplated in section 6A(3) of the Act, by the
person who last held the office of accounting officer referred to in section 6(1) of
the Act of that party or, if he or she is not available, the leader of that party within
two months after the date on which a party is required to close its books and records
of account in terms of section 6A(4) of the Act.".
National Assembly
1.
Report of the Ad Hoc Committee on Appointment of Deputy Public Protector, dated 10
August 2005:
23 AUGUST 2005
PAGE: 628 of 644
The Ad Hoc Committee on Appointment of Deputy Public Protector, having been appointed
by the House on 17 May 2005 to make a nomination to the House in order to enable it to
recommend to the President in terms of section 2A(1) of the Public Protector Act (Act No 23
of 1994) a person for appointment as Deputy Public Protector, reports as follows:
The Committee invited the public to submit nominations to it. Nominations were received in
respect of 10 candidates, 9 males and 1 female.
The Committee met on 2 August 2005 to consider the nominations. On 10 August 2005,
however, the Committee felt that there was not sufficient gender representation, and
therefore resolved to readvertise for further nominations.
The Committee therefore requests the House to extend the deadline of 18 August 2005 by
which it was required to report, to 20 October 2005.
Report to be considered.
2.
Report of the Portfolio Committee on Justice and Constitutional Development on the
Constitutional Matters Amendment Bill [B 22 - 2005] (National Assembly - sec 75), dated 19
August 2005:
The Portfolio Committee on Justice and Constitutional Development, having considered the
subject of the Constitutional Matters Amendment Bill [B 22 - 2005] (National Assembly - sec
75), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, endorses
the classification of the Bill and reports the Bill with amendments [B 22A - 2005].
23 AUGUST 2005
PAGE: 629 of 644
The Committee wishes to report further, as follows:
1.
During its deliberations on the Bill, the Committee noted that the Public Funding of
Represented Political Parties Act, 1997 (Act 103 of 1997) (the Funding Act), already
provides for two scenarios where a political party has to repay to the Electoral
Commission the unspent balances of all moneys that have been allocated to it in terms
of section 5 of the Funding Act, namely—
(a)
where a political party ceases to qualify for the allocation of moneys from the
Represented Political Parties’ Fund (the Fund) (existing section 5(4)); and
(b)
if Parliament and every provincial legislature are dissolved in terms of the
Constitution or if Parliament or any provincial legislature is so dissolved in any
other circumstances (existing section 9(3) and (4)).
2.
The provisions of the new section 6A that are to be inserted in the Funding Act create a
third scenario where a political party has to repay to the Electoral Commission the
unspent balances of all moneys that have been allocated to it in terms of section 5 of the
Funding Act, namely where a political party, after a window for "floor crossing", ceases
to qualify for the allocation of moneys from the Fund in terms of section 5 of the
Funding Act.
The Committee, during its deliberations on the Bill, deemed it
appropriate to regulate the repayment of unspent balances of moneys in terms of the
new section 6A in more detail than the repayment of unspent balances of moneys is
presently regulated in the existing sections 5(4) and 9(3) and (4) of the Funding Act.
3.
The new section 6A(8) empowers the Electoral Commission to appoint a public
accountant and auditor registered and practising as such in terms of the Public
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Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991), to, amongst others, audit
the books and records of account kept in terms of section 6 of the Funding Act by a
political party that—
(a)
ceases to qualify for the allocation of moneys from the Fund in terms of section
5 of the Funding Act after a window for "floor crossing"; and
(b)
consequently, has to repay to the Electoral Commission the unspent balances of
the moneys allocated to it.
The question has been raised whether this power should not be extended to instances─
(i)
where the accounting officer of a political party, after the end of a financial year,
fails to have the books and records of account of the party audited by a public
accountant and auditor and, subsequently, to submit an auditor’s report and
audited statement to the Electoral Commission as required by section 6 of the
Funding Act; or
(ii)
where the Electoral Commission is dissatisfied with an auditor’s report and
audited statement so submitted.
4.
The Committee also deemed it desirable to insert a new section 9A in the Funding Act
providing for certain offences that could be committed by the accounting officer or
leader of a political party that has to repay, in terms of the new section 6A, the unspent
balances of all moneys that have been allocated to it in terms of section 5 of the
Funding Act. Those offences could, however, not be made applicable to the accounting
officers of political parties that have to repay their unspent balances of moneys in terms
of sections 5(4) and 9(3)(b) and (4)(b)(ii) of the Funding Act, as no provision is made in
those sections as to who will be responsible for repaying the unspent balances to the
Commission.
23 AUGUST 2005
5.
PAGE: 631 of 644
Due to the urgency of having the Bill passed by Parliament and implemented before the
next window for "floor crossing" that starts on 1 September 2005, the Committee was
not in a position to—
(a)
investigate the desirability of—
(i)
bringing the provisions of the existing sections 5(4) and 9(3) and (4) of
the Funding Act into line with the new section 6A and to consider the
consequences, if any, of such alignment;
(ii)
empowering the Electoral Commission to appoint a public accountant
and auditor in instances where the accounting officer of a political party,
after the end of a financial year, fails to have the books and records of
account of the party audited by a public accountant and auditor as
required by section 6 of the Funding Act or where the Electoral
Commission is dissatisfied with an auditor’s report and audited
statement so submitted to it in terms of that section;
(iii)
making the offences created in the new section 9A applicable to the
accounting officers of political parties that have to repay their unspent
balances of moneys in terms of sections 5(4) and 9(3)(b) and (4)(b)(ii) of
the Funding Act; and
(iv)
contemplating appropriate sanctions for political parties which or
accounting officers of political parties who contravene or fail to comply
with the provisions of section 6 of the Funding Act; and
(b)
6.
obtain the formal views of the Electoral Commission on the above matters.
In the light of the above, the Committee recommends that the Minister for Justice and
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Constitutional Development be requested to direct her Department to investigate the
matters referred to in paragraph 5 above with a view of submitting amending
legislation, if necessary, to Parliament at the earliest opportunity.
Report to be considered.
TUESDAY, 23 AUGUST 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Classification of Bill by Joint Tagging Mechanism:
The Joint Tagging Mechanism (JTM) on 22 August 2005 in terms of Joint Rule 160(4), classified
the Repeal of Black Administration Act and Amendment of Certain Laws Bill [B 25 –
2005], introduced in the National Assembly, as a section 76 Bill and as a Bill falling within the
ambit of section 18(1)(a) of the Traditional Leadership and Governance Framework Act, 2003
(Act No. 41 of 2003).
National Assembly
The Speaker
23 AUGUST 2005
1.
PAGE: 633 of 644
Membership of Assembly
(a)
The following member vacated his seat in the National Assembly with effect from 16
August 2005:
Henderson, R K.
(b)
The vacancy which occurred owing to the resignation of his seat in the National Assembly
by Mr R K Henderson with effect from 16 August 2005 had been filled with effect from 17
August 2005 by the nomination of Ms S J Loe.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Report and Financial Statements of the South African Reserve Bank for 2004-2005,
including the Report of the Independent Auditors on the Financial Statements for 20042005.
(b)
Report and Financial Statements of the Development Bank of Southern Africa for 20042005, including the Report of the Independent Auditors on the Financial Statements for
2004-2005.
23 AUGUST 2005
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(c)
Activities Report of the Development Bank of Southern Africa for 2004-2005.
(d)
Development Bank of Southern Africa – Footprints of Development 2001-2005.
(e)
Report and Financial Statements of the Financial Services Board for 2004-2005, including
the Report of the Auditor-General on the Financial Statements for 2004-2005 [RP 512005].
(f)
Government Notice No 1114 published in Government Gazette No 27773 dated 15 July
2005: Amendment of the list of public entities as contained in schedule 2 and 3 of the
Public Finance Management Act, 1999.
2.
The Minister of Communications
(a)
Report and Financial Statements of the South African Broadcasting Corporation (SABC)
for 2004-2005, including the Report of the Independent Auditors on the Financial
Statements for 2004-2005.
3.
The Minister for Justice and Constitutional Development
(a)
Report on the provisional suspension from office with remuneration: Mr K Sulliman, an
additional magistrate at the Durban Magistrate Court.
(b)
Report on the provisional suspension from office with remuneration: Mr M S E Khumalo,
magistrate and Head of office at the Amsterdam Magistrate Court.
23 AUGUST 2005
(c)
PAGE: 635 of 644
Report on the provisional suspension from office with remuneration: Mr M F Mathe, an
additional magistrate at the Pine Town Magistrate Court.
COMMITTEE REPORTS
National Assembly:
1.
Report of the Portfolio Committee on Transport on the Budget
Hearings, dated 22 June 2005:
1. Introduction
1.1
The Portfolio Committee on Transport conducted a series of
budget hearings in Parliament between the 9th March and 18th May
2005. The hearings covered the Department of Transport, as well
as all of the public entities that fall under the national
transport budget: the South African Rail Commuter Corporation,
the South African National Roads Agency Limited, the Road
Accident Fund, the Cross-Border Road Transport Agency, the
South African Maritime Safety Authority, the South African
Civil Aviation Authority, the Road Traffic Management
Corporation, the Railway Safety Regulator, the Air Traffic and
Navigation Services Company, and the Airports Company of South
Africa. The Urban Transport Fund will now be incorporated into
the Department’s budget and will no longer be a separate
reporting entity.
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1.2
PAGE: 636 of 644
In the hearings, the Committee focused on assessing whether the
transport budget made adequate provision for the strategic
plans of the Department and of the public entities. The
hearings were also used as an opportunity to discuss the
appropriateness of the major objectives of these various
strategic plans.
1.3
In regard to this general approach, the Committee notes that,
while the Department complied with the requirement that
departmental strategic plans be tabled seven days before the
relevant budget vote in the National Assembly, one week is
entirely inadequate for an effective public hearings process.
The Department did, indeed, provide the committee with an
advance draft version of the strategic plan, and we commend
them for this. Our concern is not with the Department, but with
the need to improve the general approach of Parliament to the
budget hearings and votes.
1.4
In the course of our hearings many matters of detail emerged,
some indicating important progress, others indicating areas
that require attention. The Committee will follow up on all of
these matters in detail. In this report we highlight some of
the major features of the Transport Budget, and we note some
significant areas of concern.
2.
The National Department of Transport
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2.1
PAGE: 637 of 644
The department’s budget for 2005/6 is aligned to and generally
supports an important organisational restructuring underway
within the department. In the previous year, the Portfolio
Committee expressed some concern about the department’s
organisational design. It was not always clear why some
functions belonged to one programme rather than another. The
Committee believes that the strategic objectives of the
department and the alignment of departmental programmes are now
significantly improved. In particular, the organisational
changes, and the budget allocations to support these changes,
provide greater focus to the critical area of transport
regulation. Key areas of transport, which have tended to be
somewhat neglected, the rail, aviation and maritime sectors,
now also receive better attention in the new organisational
design.
2.2
This year’s transport budget also more adequately reflects
government’s overall strategic objective of leading a major and
expanded infrastructural programme to lower the costs of doing
business in South Africa, to address our developmental
challenges, and to provide jobs. Additional allocations for
passenger rail infrastructure, for instance, have been made –
R500 million for the 2005 budget, with a further R100 million
and R250 million envisaged for the following budgets. In
partnership with provinces, the Department has been active in
revitalising a number of strategic branch lines that are
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critical to the economic and social sustainability and
development of rural areas and towns. Work is nearing
completion on the Kei Rail line in the Eastern Cape, and
preliminary work has started on improving the Nkwaleni line in
KZN and the Belmont-Douglas line in the Northern Cape.
2.3
The Committee is also tracking the infrastructural spending on
road construction, upgrading and maintenance. R1, 5bn (up from
R1, 1bn in 2001/2) is earmarked in this budget for this
purpose, and is almost entirely transferred through to the
South African National Roads Agency Ltd. The Committee believes
that closer monitoring and coordination is required of other
road infrastructure funding, including funding allocated to
expanded public works programmes, poverty relief and job
creation.
2.4
The area of road traffic enforcement remains a major concern.
This year’s budget sees a significantly increased allocation to
the Road Traffic Management Corporation (R10, 7 million), but
the RTMC has failed to function thus far. The Committee notes
that the founding legislation was passed in 2000, and there has
been a chief executive officer at the corporation for some two
years already. Progress is now a matter of urgency and will
need to be monitored closely in the coming period. The
important Administrative Adjudication of Road Traffic Offences
legislation has also still to be implemented by the Department.
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2.5
PAGE: 639 of 644
Another area of significant challenge lies in meeting the
Department’s objective of providing safe, affordable and
efficient public transport. The Committee played an active role
in helping to re-define the taxi recapitalisation programme,
scaling it down from its original well intentioned but
unworkable approach. We welcome the new scaled-down policy, and
we welcome the Department’s assurance that it will continuously
engage the SA National Taxi Council and all other relevant
stakeholders as the process unfolds.
2.6
We also welcome the important budgetary increases provided for
bus and rail subsidies – they are expected to grow (along with
rail infrastructure spending) by 7,6 percent per year between
2004/5 and 2007/8. However, we note that the institutional
channels through which public transport subsidies are
administered still tend to militate against achieving modally
integrated public transport services. The rail subsidy is
administered by a national agency, the South African Rail
Commuter Corporation. Bus subsidies are transferred from the
National Department to provinces. Minibuses, the major mode of
public transport in our country, are not operationally
subsidised, although the nationally administered
recapitalisation programme will be a major capital subsidy.
However, these different subsidy streams tend in practice to
discourage rather than foster inter-modal integration of all
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forms of public transport at the local level. There is also an
institutional disjuncture between urban spatial planning
related to IDPs (a local government competence) and public
transport subsidies that tend to be driven nationally or
provincially. The Committee believes that in the coming years
we must move towards a much more integrated approach to the
subsidisation, planning and regulation of public transport.
2.7
In the previous Parliament, the Transport Portfolio Committee
initiated the proposal that the South African Police Services
should establish a dedicated transport unit. Although this
falls under the Safety and Security budget, we are pleased to
note that the SAPS has indeed trained and launched a pilot
railway police unit for the Metro rail system in the Western
Cape. We warmly welcome this development, and trust that it
will be replicated elsewhere in the country. Working together
with our counterparts in the Safety and Security Portfolio
Committee, we will continue to monitor progress in this
respect.
2.8
The Committee is satisfied that the Department and other
relevant public entities in the transport field are beginning
to gear-up for the 2010 World Soccer Cup Finals in South
Africa. The event will present many public transport
challenges. These challenges are, however, also an opportunity
to undertake public transport initiatives that need to be
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addressed in any case. While we are satisfied that the relevant
preparations are being undertaken, finalisation and much of the
rolling-out of transport infrastructure will only be possible
when firm decisions are taken in regard to venues. The
Committee will continue to track developments on this front.
3.
Transport-related public entities
3.1
In its budget hearings the Committee also engaged with all the
public entities reporting to the Minister of Transport (as
listed in 1.1 above). Many of these entities are functioning
effectively in their respective areas – in particular, we note
the work of the Air Traffic Navigation Services Agency, the
South African National Roads Agency Limited and the Airports
Company of South Africa. The Committee also noted an important
improvement in the reporting to Parliament of the Cross-Border
Road Transport Agency. However, some of the other public
entities are facing complicated challenges and/or are failing
to perform adequately.
3.2
The Committee has been monitoring the Public Finance Management
Act compliance of the public entities falling under our budget.
In this regard, the Department reported to the Committee that
several public entities failed to meet the 30th September 2004
deadline for the submission of their audited reports. These
entities were the SARCC, RAF, SAMSA, SACAA, CBRTA, RTMC and
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RSR. In the case of the CBRTA, this was the third time running
that it has missed the annual deadline. The Committee also
notes that the Auditor General gave qualified reports to the
RAF, SARCC and SAMSA, and disclaimers to his reports on SANRAL
and CBRTA.
3.3
The Road Accident Fund continues to be a major concern. There
has been a significant increase in revenue for the fund from
the fuel levy. Revenue grew from R2, 6 billion in 2001/2 to R4,
5 billion in 2004/5. Despite this growth, the Fund’s
expenditure has consistently outstripped revenue since 2001/2,
exhausting its reserves. Total claims paid rose from R3.1bn in
2003 to R3, 99bn in 2004. There is a significant backlog of
claims and the discounted actuarial liability of the Fund is of
great concern. It is clear that the present situation is not
sustainable. The underlying reasons for this situation are
several and include poor management, significant levels of
apparent corruption, and excessive payments to legal and
medical professionals to the detriment of actual road accident
claimants – itself the consequence of the often excessively
litigious, fault-based system the RAF is mandated to operate.
While important progress has been made in revamping management
structures and in rooting out corruption, many of the problems
of the Fund are of a more systemic kind. Government has
accepted, in principle, the recommendations of the Road
Accident Fund Commission, although affordability concerns
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remain. It is the view of the Committee that decisive and farreaching decisions will have to be made about the Fund in the
coming years. Piece-meal reforms, including the present RAF
Amendment Bill with which the Committee is busy, may be helpful
but will not get to the root of the challenges.
3.4
The Department is overseeing a process of integration of the
South African Rail Commuter Corporation and Metro rail. The
Committee supports this process, while appreciating that
institutional integration is often a complex process. One such
complexity is that the SARCC’s assets have been incorrectly
valued. Generally Accepted Accounting Practice (GAAP)
depreciates rail rolling stock over a 33-year period. When the
SARCC was devolved out of the old SA Transport Services in
1990, for some reason the used rolling stock assets it then
acquired were treated as if they, too, were new and the 33-year
depreciation count started all over again. The assets of the
SARCC have, therefore, been significantly over-valued, and it
is for this reason that its recent audited reports have been
qualified. A second major challenge facing the integration of
SARCC and Metro rail lies in the funding flow.
The SARCC has been operating as a public utility with a public
service mandate, transferring the rail subsidy from the
national budget through to the operator, Metro rail. However,
Metro rail functions as a public enterprise and its estimated
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R950 million annual fare income is not passed back to SARCC,
but on to its current parent company, Transnet. Achieving an
effective integration of two public entities with somewhat
different institutional mandates and cultures will need to be
accomplished with the strategic priority being placed on
expanded, safe and affordable rail transport as part of a wider
public transport system.
3.5
The Railway Safety Regulator is a new public entity established
in terms of legislation passed in 2002. The total transfers to
the RSR from the Department of Transport are expected to
increase by 14,1% per year over the MTEF period, from R15
million in 2004/5 to R22, 3 million in 2007/8. The Committee
appreciates that the RSR is still in a formative stage, but we
are concerned that the present Board does not appear to have
any significant railway experience, nor are there any relevant
trade union representatives. In our budgetary hearings we were
also concerned that the RSR representatives did not appear to
have a clear strategic plan. Progress at the RSR will need to
be closely monitored over the coming period.
Report to be considered.