Public Investment Corporation Amendment Draft Bill [PMB - 2017]

Call for comments opened 02 November 2017 Share this page:

Submissions are now closed (since 30 November 2017)

Rules of the National Assembly

In accordance with section 73(2) of the Constitution of the Republic of South Africa, 1996 (“the Constitution”), notice is given that Mr David Maynier MP intends to introduce the Public Investment Corporation Amendment Bill, 2017 in Parliament during the fourth quarter of 2017/2018.

An explanatory summary of the Bill is hereby published in accordance with Rule 276(1)(c) of the Rules of the National Assembly (9th Edition).

Bill seeks to deal with:
- For the chairperson of the PIC board to be appointed by the Minister on the recommendation of the National Assembly, following consideration of a shortlist of nominated candidates and with due regard for experience and qualifications;
- For the remainder of the PIC board to be comprised of 12 members, which must include representatives from the PIC’s sole client, being the Department, and major depositors;
- For all directives issued by the Minister to be tabled in the National Assembly and published on the PIC website to ensure greater transparency regarding the operations of the PIC;
- For the PIC to disclose all investments on an annual basis, by way of a report to be tabled in the National Assembly and on the PIC website. Although particulars of “unlisted investments” were disclosed, for the first time, in 2016/17 there is no existing legislative requirement to do so. This requirement would contribute to transparency and investor confidence;
- For the PIC to include in its annual report a list of all requests to the Minister for that year, in respect of significant transactions requiring Ministerial approval. These transactions will most likely be in terms of the Public Finance Management Act, 1999 (Act No. 1 of 1999), and will include transactions such as acquisition or disposal of major assets or the entering into of major agreements with private sub-contractors for investments;
- For the Minister to table all regulations in the National Assembly prior to publication of the final regulation, and requiring the National Assembly to provide the Minister with inputs, having considered the draft regulation. This allows for greater oversight over regulations and increases transparency;
- For transitional arrangements in respect of the board composition, particularly to ensure that the prescribed composition is complied with progressively rather than immediately upon promulgation. This is to protect the contractual rights of existing board members; and
- For transitional arrangements in respect of the appointment of the chairperson, to ensure that the parliamentary process commences within six months of the Bill’s promulgation.

Interested parties and institutions are invited to submit written representations on the draft bill.

Comments can be emailed to Ms B Mbete at bmbete@parliament.gov.za and copied to Mr Alex Tarr at alect@da.org.za by no later than Tuesday, 30 November 2017

Enquiries can be directed to Mr Alex Tarr on tel (021) 403 8641