Committee Programme; Budget Vote Process, Sector Analysis & Role Clarification: briefing by Committee Staff

Meeting report

Committee Programme

The Chairperson referred to the Committee Programme which was circulated to Members and requested that Members propose any amendments or alterations.

Members indicated that they were satisfied with the contents of the Programme.

The Committee Programme was then adopted without any amendments.

Presentation on Secretariat Support and Budget Cycle

Mr Lubabalo Nodada, Committee Secretary, presented to the Select Committee on the roles and activities of the Committee and of the Secretariat.

Mr Nodada identified the following brief roles of the Secretariat:

●Committee Powers and Mandate

●Committee Programmes

●Overview of Major Annual Activities

●Budget Process and Bills

 

Mr Nodada said the budget process and matters relating to Bills were enacted during a six week cycle. The following Bills were of importance:

·         The Division of Revenue (DoR) Bill

·         The Appropriation Bill

·         Medium Term Budget Policy Statement

·         Division of Revenue (DoR) Amendment Bill

·         Adjustment Appropriation Bill

·         Reports on Bills

Mr Nodada noted the following Committee Reports that the Select Committee was responsible for:

·         Conditional Grants to Provinces

·         Oversight Visits to Municipalities

·         Oversight Visits to Conditional Grants projects

·         Bills (Reports)

·         MTBPS (Proposed Conditional Grants for Provincial and Local Government spheres)

Mr Nodada explained that Financial and Fiscal Commission’s submission of its recommendations on the DoR Bill on an annual basis was required from the Committee.

Challenges

Mr Nodada said tight timeframes when processing MTBPS was a challenge. It was also explained that some provinces did not understand the six week cycle and the necessity for it to be adhered to which was problematic for the Committee.

Presentation on Research Support

Ms Yolanda Brown presented to the Select Committee on Research Support. Ms Brown briefly noted the following:

 

·         Role of the researcher

·         Orientation Paper discussing

·         The role of the Committee

·         Relevant Legislation

·         National Policies

·         Challenges

·         Key acronyms

Presentation on Sector Analysis

Mr Mongana Tau, Committee Content Advisor, presented to the Select Committee regarding the Sector Analysis.

He noted that “sector” referred to the three spheres of government. Mr Tau explained the internal environment of the Committee with emphasis on the NCOP with regard to the structural analysis of the Committee.

Mr Tau noted that the current Parliamentary Strategic Objectives needed to be considered by the Committee and noted the following salient features in his analysis:

Strengths

Medium Term Expenditure framework is three years. The budget of R1 trillion was divided nationally at 47.5%, provincially at 43.5% and locally at 9%.

Mr Tau noted that the revised local government share of revenue formula was established to ensure funded mandates and sufficient planning.

Mr Tau also indicated that a Conditional grant to various spheres allocates funding to the 9% budget allocation for municipalities. The sharing of resources promotes co-operative governance.

Weaknesses

-       Under-spending and roll overs which compromise service delivery.

-       Negative audit opinions – regressions in negative audit outcomes

-       Withholding of funds

-       Interventions: 2009-2013 there were 37 interventions creating unnecessary tensions

-       Municipalities with low revenue base and low revenue collections

-       Litigation between spheres which challenges interventions and functions’

-       Weak intergovernmental relations which result in poor participation in IDP processes

-       Capacity constraints: skills shortages, high staff turnover and high vacancy rate within municipalities

Structural challenges within local government which has resulted in various programmes and interventions, namely: Project Consolidate; Siyenza Manje; Local Government Turn Around Strategy; Operation Clean Audit 2014; and Presidential Intervention In SONA.

Mr Tau explained that spheres withheld funds when the provisions of the grant were not met and there was poor planning and execution of the grants. The budget provision for service delivery during the third quarter experienced gross underspending which affects South African citizens adversely. National Treasury needed to explain why the budget roll-over was approved but underspent.

With regard to the Audit Outcomes during 2012/2013, Mr Tau noted that the progress towards a clean audit opinion in 2014 was slow. He further stated that the lack of capacity affects the ability of stakeholders to account for resources.

Mr Tau indicated the following issues for consideration by the Committee:

·         Committee Mandate

·         Equitable distribution of resources

·         Service delivery

·         Legislative mandate

·         Oversight and public participation

·         Positive audit reports

Provincial Liaison Officer (PLO) Support

It was noted by the Gauteng PLO, Ms Jocelyn Moeti, that the introduction of Bills required each province to receive the relevant documentation including the ATC. The following process was described:

-       Introduction of Bill

-       Referral to NCOP

-       Briefing by National Department (Special Delegates)

-       Provincial Briefing (Permanent Delegate and National Department)

-       Public Hearings (National Department)

-       Negotiating Mandate

-       Minutes

-       Final Mandate

Ms Moeti explained that the PLO is responsible for providing all stakeholders with the details of each procedural activity and the necessary documentation and minutes.

The Free State PLO, Ms Marette Basson discussed the following challenges to PLOs:

Challenges

-       Select Committee programme changes

-       Public Participation is not effective

-       Calling of Sitting of the Provincial Legislature

-       Meetings on Wednesdays affects MEC availability

-       Unavailability of MECs and representatives – acceptable representatives need to be present

-       Inviting special delegates to budget lock-up without gallery tickets to the budget speech

Discussion

Mr E Von Brandis (DA, Western Cape) indicated that the timeframe of processes requires large expenditure and approvals. He noted that the public requires a response period and the content of Bills often requires travelling and this cannot be accommodated within the six-week cycle.

Mr C De Beer (ANC, Northern Cape) said PLOs are not the only link as provincial delegates are links. He noted that the chairpersons whom are asked to attend meetings can engage with Committees before the mandates from PLOs are received to fast-track the process to meet deadlines. De Beer noted that within the Northern Cape, groups of delegates split to accommodate various areas.

The Chairperson emphasised that creativity and focus were required to address the various challenges of the Committee.

The Chairperson urged Members of the Committee to recommend solutions to issues identified in the presentations. He noted that the Committee engages with factual information and therefore interpretation is a critical aspect in the process of proposing solutions to these concerns. He advocated a creative approach by Members to all issues raised.

Mr De Beer raised a concern regarding the municipalities and indicated that the Legacy report was discontinued. He noted that the Revenue Bill was critical as it concerns funding allocations to municipalities. He further indicated that the report to the auditor-general is crucial to future concerns regarding funding.

Mr De Beer noted that the processes regarding the establishment of new mental institutions will be delt with by the Committee.

The Chairperson indicated that the report from the auditor-general will be attained to evaluate project management and the current reform processes outlined in the State of the Nation Address. He emphasised the receipt of documents before meetings for healthy discussion.

The meeting was adjourned.