International Relations and Cooperation Budget: Committee Report

Meeting report

Committee Report on International Relations and Cooperation Budget

The Committee Content Adviser quickly read through the draft report, highlighting the main issues in each section. In terms of South Africa’s foreign policy, no major changes were made. The global environment in which the Department is working is volatile and unpredictable, leading to currency fluctuations which negatively impact the already spread thin budget.

South Africa has taken charge of many organizations including SADC, Indian Ocean Rim Association (IORA), and BRICS. South Africa will be hosting multiple summits during this next fiscal year, including the BRICS summit scheduled for July, which will be funded from the Department’s budget with no additional assistance from National Treasury.

The Department currently reported a vacancy rate of 9.9%, hindering its ability to have full effect on the ground. The Department’s budget allocation for fiscal year 2018/19 is R6.5 billion which is considered an increase over last year’s allocation of R6.4 billion; however, with exchange rate fluctuations and other factors, the Department has begun terminating locally recruited personnel (LRP) to stretch the short allowance.

The African Renaissance and International Cooperation Fund (ARF) has received an allocation of R3.85 million, however, National Treasury has recalled R1.6 billion from the ARF surplus. If this money is rescinded, it will directly impact ARF’s ability to fund projects including the elections set to take place in Zimbabwe, Madagascar, and the DRC. However, ARF has begun focusing on the issuing of loans with the first loan being granted to Cuba. Cuba has already begun to repay the loan ahead of schedule.

Finally, the report highlighted the observations and concerns that the Committee expressed during the briefing held a week earlier. The Committee requested that regular political engagement and discussion on various topics take place between the Committee and the Minister of International Relations. Additionally, it was proposed that there be a rationalization of South Africa’s international missions. The increase in the budget will not be enough due to the Department’s mandatory allocations; therefore the Committee supported the reduction of LRP’s. The Committee questioned the role of ARF in terms of loan distribution although the repayment by Cuba was commended.

The report briefly included the responses of the Department in which it reassured the Committee that all objectives will be achieved despite budgetary restrictions. The reduction of LRP’s will account for the cost of the upcoming summits which are unavoidable expenses. Political discourse between the Minister and the Committee is fully welcomed and highly anticipated as the new Minister takes to the role. A detailed report on South Africans membership to international organizations, as well as the expected contribution to each, will be provided to the Committee as requested.

Discussion

The Chairperson corrected a grammatical error on page seven, line number two.

The Chairperson made a phrase change to paragraph 10.4, line three of the report to use the words “public representative”.

The Chairperson asked for clarification on paragraph 10.5, that the only countries going for election are Madagascar, Zimbabwe, and the DRC.

The Content Adviser responded that those are the only countries going for election in SADC.

The Chairperson enquired if paragraph 10.8 should show the percentile or intracontinental African Trade.

The Chairperson referred to paragraph 10.15 and indicated that DIRCO needs to plan to work together with trade and industry.

The Content Adviser responded that the role of the Department is to participate in the process of attracting and identifying these partnerships, it should not overreach the mandate of trade and industry.

Mr S Mokgalapa (DA) suggested that this participation be highlighted. Mr Mokgalapa also commented on paragraph 10.14 to ask that the request for the report on the CFO be put into writing.

Ms S Kalyan (DA) referred to paragraph 11.7, asking specifically what South Africa’s position was in regard to the campaigning for the seat on the UNSC.  The answer that was given was very weak and the Department was not up to date with their information. Ms Kalyan stated that morning of the meeting, she was aware that Mr Aziz Pahad had been appointed special envoy to go to the UN and lobby for South Africa which the Department did not mention. She found it problematic that the Department does not have all the information. Although it is in the President’s authority to make these appointments, DIRCO should be aware and maintain a role in the process. Does the Foreign Service Bill cater to the people in the envoys?

The Chairperson asked for clarity about Mr Aziz Pahad being appointed envoy to the UN.

Mr M Maila (ANC) stated he is very disappointed with the answer from the Department on the issue of special envoys. In the Committee recommendations, the Department should be told to ensure it is proactive and not to wait for problems.

Mr Mokgalapa responded that the mandate of the envoy is unknown, whether if it is to push for consensus or if it is to push South Africa’s position. He agreed with Mr Maila that this be put in as a recommendation because DIRCO needs to be aware of what is happening otherwise is it unacceptable.

Ms D Raphuti (ANC) stated that the Committee must not put words in the Departments mouth. The intervention was a surprise but it was welcome by the President. It is unfair to make these assumptions.

The Chairperson clarified that with matters such as appointments to an envoy, the President’s office does consult with the Minister. It can be assumed the Minister knew about the envoy but perhaps the Director-General did not know on the day of the meeting. However, there are areas the Department needs to give the Committee information.

The Content Adviser asked if the Committee would like to include this as a recommendation or simply allow the minutes to reflect the discussion.

The Chairperson responded that this should be part of the recommendation.

The Chairperson made a grammatical correction on the last paragraph of page 28.

The Chairperson opened discussion on the adoption of the report.

Mr Mokgalpa stated that on behalf of the Democratic Alliance, the report is appreciated and well crafted. However, since Parliament works on the political party system, as the DA, they reserve their right to vote otherwise.

Ms Raphuti proudly commended the work of the Content Adviser for the crafting of the report. Ms Raphuti moved for the adoption of the report with some changes.

Mr Maila seconded the adoption of the report.

The Chairperson announced that aside from the objections from Mr Mokgalapa and Ms Kalyan, the report passed with no further objections from the Committee members present.

 The meeting was adjourned.