Special Report of the Auditor General on the Delays in Tabling of Annual Reports for Financial Year 2001/2

Meeting report

PUBLIC ACCOUNTS STANDING COMMITTEE
13 October 2002
SPECIAL REPORT OF THE AUDITOR GENERAL ON THE DELAYS IN TABLING OF ANNUAL REPORTS FOR FINANCIAL YEAR 2001/2

Chairperson: Mr F Beukman (NNP)

Documents handed out:
Special Report of the Auditor General on the Delays in Tabling of Annual Reports for the Financial Year 2001/2 (link to www.agsa.co.za)

SUMMARY
The Committee deliberated on the Special Report of the Auditor General on the delays in tabling annual reports for the financial year 2001-2002. The Auditor General asked for assistance from the Committee to obtain explanations from Departments on the delays in the tabling of their annual reports. But the Committee could not agree on whether to write to the Speaker or directly to the Departments and Institutions concerned.

MINUTES
Briefing on the Special Report by the Auditor General
Mr Shauket Fakie: Auditor General, informed the Committee that he has decided to report to Parliament in terms of the discretion granted to the office by section 65(2)(b) on the compliance of the executive authority with the PFMA. In terms of the PFMA the executive authority responsible for a department of public entity is required to table the annual report and audited financial statements within one month after the accounting officer or authority received it. Normally, tabling occurs five months after the end of the financial year. If the executive authority fails to submit the report within six months, a written explanation must be submitted to Parliament setting out the reasons for the failure. The Auditor General regards this requirement as a crucial part of good governance. It is his concern that Departments or institutions that have failed to comply with such stipulations after the 31 October 2002 deadline have to be reminded. Although such a reminder was issued on 17 October 2002, to date very few have responded to the reminder. The Auditor General was therefore requesting the Committee to write to the Speaker to raise such concerns.

Mr P Gerber (ANC) said it was good that a copy of the Auditor General's letter went to the various Ministries; he was supportive of the move to write to the Speaker.

Ms NL Hlangwana (ANC) asked what the PFMA says about late tabling.

Mr Fakie said the PFMA is not prescriptive to the Executive and Parliament on when to table but this was no excuse for not tabling when required. The Committee needed to write to the Speaker and ask her to intervene. He noted that his report was based on information from the tabling records of Parliament. There may be some explanations as to why tabling occurs after the cut-off date.

Mr DM Gumede (ANC) said there may be some marginal improvements in some areas but not complying with the Act is a breach of the law. In the communications it should be stated that some people have complied.

Ms Hlangwana said she noted that the reason for the delay should be submitted to Parliament and she was not sure whether it was within their scope to follow up with the Departments. In their resolution they should raise their concern about not tabling.

Mr VG Smith (ANC) said he agreed that that they should write to the Speaker and she should also go ahead and ask the Departments why an explanation for the delay was not submitted, as required. He said it was also their duty as the Committee to write to the Departments as well.

Dr GW Koornhof (UDM) agreed that they should consider writing a resolution on the report of the AG and the Committee needed to support him on the action he has taken.

Mr B Kannemeyer (ANC) asked Mr Fakie which different parties he has sent the report to.

Mr Fakie said the report was tabled that morning and they were dealing with it proactively.

Mr Kannemeyer said was not sure whether they could interact with the report because it has not referred to them. He noted that the Minister needed to make a written explanation on the main vote only.

Mr R Mofokeng (ANC) said procedures need to be followed and his understanding was that they should ask the Accounting Officer to account to the Committee. The Leader of Government Business should be the last resort.

Mr M Lowe (DP) said now that they have seen the report they should take action.

Mr Kannemeyer said their responsibility was to hold the Executive accountable in matters related to the laws of the country. He shared the sense of urgency about the situation. They were on the same side as the Speaker; he therefore urged Members to let the Speaker follow up with the Departments and the Committee should formulate the resolution.

Mr Lowe said he was not in agreement that they should write to the Departments.

The Chairperson proposed that they deal with some of the issues and the resolutions in January. They should write to the Speaker and the Departments that have delayed the tabling of reports.

Mr Mofokeng suggested that they write to the Departments concerned and after receiving the replies then they should write to the Speaker.

Ms Hlangwana suggested that Members take into consideration the concerns raised by Mr Kannemeyer and the letter should be written after the report has appeared in the ATC.

Mr Fakie said he understood that the report would appear in the ATC the following day.

Mr Kannemeyer said technically they should not even have had the discussion but they have compromised. The Committee should therefore write to the Speaker and ask for advice on whether they should write to the Departments.

The Chairperson emphasised that they should work in terms of the Rules of Parliament.

Dr Koornhof said their duty was to support the Auditor General and guide governance. Therefore the Committee should write directly to the institutions concerned.

The Chairperson said they should wait for a referral and take it from there.

Hearings on Departments
Mr Lowe said his cluster has scheduled hearings for the Department of Home Affairs in 2003.

Mr Kannemeyer said he was supportive of the sentiment but during the hearings the Committee should ask the relevant people to represent the Department.

The Chair said it was important that they invite the relevant people.

Mr Gumede said because of the nature of these Departments, historically, they have generated much public interest, especially Defence.

Mr Kannemeyer said he was supporting the hearings on Defence.

Mr Smith said they should also have a hearing on SARS.

The Chairperson said they would make the formal resolutions on the 21 January 2003.

Mr Kannemeyer said he was in agreement with the framework of the Committee Programme for 2003.

The programme was adopted with amendments.

The meeting was adjourned.