Question NW3348 to the Minister of Finance

INSTITUTION

REQUEST

APPROVED/NOT APPROVED

REASON

DATE OF REQUEST

DEPARTMENTS MOTIVATION

Brand-South Africa

Request to hold 3 additional credit cards to carry out operations in foreign countries.

NOT APPROVED

The entity was advised to use alternative payment methods as they could not provide evidence that payments in foreign countries could only be made using credit cards.

27 February 2015

Presidency

(Ex-post facto approval) To request approval for the upgrade of Group B hired vehicles to executive class vehicles for the National Orders Advisory Council Members.

NOT APPROVED

Vehicles in a category other than category B may be hired with prior written approval of the Accounting Officer, where a different class of vehicle is required for a particular terrain or to cater for special needs of an employee in terms of paragraph 4.18 of the Treasury Instruction. Therefore, the ex-post facto approval is not granted and non-compliance to this Treasury Instruction may be reported as such.

29 May 2014

To deviate from the Cost Containment measure for travel and subsistence - SCM officials to travel to Cape Town to perform asset verification

NOT APPROVED

National Treasury has concluded that no compelling reasons were found to grant approval for this deviation.

29 May 2014

Request to exceed the daily accommodation limit of R3000 for officials attending the – SONA/ officials accompanying President Zuma during the Treasury Budget Vote in Cape Town/ The special Advisor to the Deputy President accompanying the Principal/ Officials attending the National Orders Award Ceremony/ official GM as hotels were fully booked.

DEVIATION NOT NECESSARY

In terms of paragraph 4.16 of the Treasury Instruction, Accounting Officers is given an authority to approve accommodation costs that exceed R 1300 :

a)During Peak Holiday periods

b)When South Africa is hosting an event in the country or in a particular geographical area that results in an abnormal increase in the number of local and/or international guests in the country or in that particular geographical area.

29 May 2014

Legal and Executive Services invited to attend an urgent consultation in Cape Town to discuss the way forward on a Constitutional Court Judgment Matters.

NOT APPROVED

There were no compelling reasons found to grant approval for this deviation.

29 May 2014

Approval to procure business class ticket for an official to accompanying Deputy President to United Kingdom, University of Oxford due to medical reasons.

DEVIATION NOT NECESSARY

In terms of paragraph 4.9 of the Treasury Instruction, the Accounting Officer may approve the purchase of business class tickets for employees with disabilities or for those with special needs.

Therefore approval from National Treasury is not required where the Accounting Officer has granted such approval in terms of paragraph 4.9

29 May 2014

Request to arrange catering for the Cabinet and its Committee meetings

DEVIATION NOT NECESSARY

In terms of paragraph 4.23 of the Treasury Instruction, Departments may not incur catering expenses for internal meetings i.e. for meetings attended only by persons in its employ, unless approved by the Accounting Officer.

Therefore approval from National Treasury is not required where the meetings indicated in this deviation were internal meetings and approval was granted by the Accounting Officer in terms of paragraph 4.23 for catering expenses incurred.

29 May 2014

Request to retain commissioners appointed in May 2010 for a fixed period ending in April 2015.

APPROVED

The Treasury Instruction was issued after the Commissioners were appointed, The Presidency to retain all these Commissioners until the end of their contracts in April 2015.

29 May 2014

Request to fly business class for officials as they are required to fly for about 20 hours in the economy class and still be fresh to work on arrival.

NOT APPROVED

The National Treasury can only consider deviations from this Treasury Instruction on a case by case basis.

29 May 2014

Request to exceed prescribed threshold of R1300 as support staff of principals is often required to reside in close proximity to the hotels where the principals reside.

NOT APPROVED

The National Treasury can only consider deviations from this Treasury Instruction on a case by case basis.

29 May 2014

The Presidency would like to be exempted from the restrictions relating to the approvals for the use of 4X4 vans as we would not timeously know the conditions of the road and the state of the terrain at the projects sites.

DEVIATION NOT NECESSARY

Where a different class of vehicle is required to cater for a particular terrain or special needs of an employee, such vehicles may only be hired with the prior written approval of the Accounting Officer.

29 May 2014

Request to exceed the number of employee travelling to Parliament on official duty/ travelling by air to other centres to attend an official engagement on the same matter.

DEVIATION NOT NECESSARY

Accounting Officer is allowed to pre-approve a higher number of officials

29 May 2014

Request to exceed the R2 000 entertainment allowance per person per financial year.

DEVIATION NOT NECESSARY

The Accounting Officer has the authority to approve allowance that is higher than R2000 if satisfied that there are sufficient and sound reasons to do so.

29 May 2014

Independent Electoral Commission(IEC)

The entity requested permission to serve alcohol at two functions namely, a gala dinner held immediately after election results are announced

DEVIATION NOT NECESSARY

Information submitted to NT indicated that the international guests attending the dinner will include Foreign Ministers who are delegates in the AU and Members of Parliament of various SADC countries who are in the SADC Parliamentary Forum delegation. Therefore on the basis that these international guests are considered to be Foreign Dignitaries, exception c) of paragraph 4.25 would be applicable and no exemption was therefore required.

25 February 2014

Independent Electoral Commission(IEC)

Secondly alcohol was to be served at a dinner to be held for sponsors. Therefore request for exemption from of Paragraph 4.25 of the Treasury Instruction 01 of 2013/2014 was requested.

NOT APPROVED

Upon review of the entity’s submission in relation to the dinner for sponsors, National Treasury found that there are no compelling grounds on which to grant the deviation.

25 February 2014

Department of Defence (DOD)

Engagement with consultants:

The use of casual workers and laboratory services will be classified as outsourced services whilst the technicians for repairs of equipment will be classified as contractors for all minor and major assets

NOT APPROVED

In the DOD, consultants exclude for example casual workers, technicians for equipment repairs and the use of laboratory services that are classified as outsourced.

16 April 2014

All contracts relating to consultancy services procured by the DOD will be subject to the provisions contained in the National Treasury Instruction 01 of 2013/2014 paragraphs 4.1 to 4.5.

Team Building and Social Events:

Most of the social and year end functions are used to honour and recognise identified employees that have gone out of their way to ensure service delivery and perform well in their areas of work. It is good management practice that top management recognise high performers with a view to motivate others to do likewise.

NOT APPROVED

Treasury does not grant blanket approval for these kind of events

16 April 2014

Uniqueness of the DOD:

Officials of the Defence Intelligence and Special Forces Operation are officials employed within the establishment of the DOD and any expenditure related and incurred by the DOD on travel, accommodation, subsistence, catering and events of such officials shall be subject to the provisions of the Treasury Instruction.

NOT APPROVED

The Cabinet resolved in its discussion on 23 October 2013, that all PFMA compliant institutions must implement cost containment measures in their institutions to contain operational costs and to eliminate non-essential expenditure

16 April 2014

Air Travel:

The two (2) staff members of the Secretary for Defence and the CSANDF to travel business class for efficiency and security reasons.

NOT APPROVED

After careful consideration pertaining to the requests made for deviation, the National Treasury cannot grant blanket approvals for deviations of:

Services and Divisional Chiefs to travel business class for flights less than five (5) hours.

16 April 2014

Accommodation costs

Exceed R1300

NOT APPROVED

The accounting officer of the DOD is allowed to approve amounts in excess of R1 300 in line with paragraph 4.16 of the Treasury Instruction

16 April 2014

Vehicle hire:

Application for foreign dignitaries on the class of vehicle that may be utilised for their official visits to South Africa.

APPROVED

To reiterate, the Treasury Instruction does not apply to foreign dignitaries hence there is no limitation on the class of vehicle that may be utilised for their official visits to South Africa, but it is expected that fiscal prudence is observed.

16 April 2014

State Security Agency

Team Building and Social Events

The SSA was urged to ensure that paragraph 4.26 of the Treasury Instruction is implemented accordingly within the department in order to ensure compliance.

Furthermore, it should be noted that wellness programmes do not form part of cost containment measures and should not be confused with the items listed above.

NOT APPROVED

SSA’s environment is necessary due to the nature of the business. Part of this is employee wellness and essential for the efficient functioning of teams performing and supporting intelligence and counterintelligence operations.

State Security Agency

Foreign Intelligence Services (FIS):

Foreign Intelligence Services (FIS) are Intelligence Operatives from other countries that SSA liaise Intelligence Information with, e.g. the CIA.

DEVIATION NOT REQUIRED

These are considered foreign dignitaries and the Treasury Instruction on cost containment measures does not apply.

6 October 2014

Accommodation Cost

It is noted in your correspondence that the SSA has special operative work which requires officials of the SSA to stay in accommodations booked in line with their respective operative field of work.

APPROVED

The National Treasury after consideration of your request hereby grants the SSA to deviate from paragraph 4.15 of the Treasury Instruction provided that the domestic accommodation is approved by the accounting officer prior to the expenditure being incurred

6 October 2014

Air Travel

Request to not comply with cost containment measures

NOT APPROVED

After careful consideration of the SSA’s request to deviate from paragraph 4.17 of the treasury instruction the National Treasury found that there were no compelling reasons to grant a blanket approval as deviations can only be considered for approval on case by case basis.

6 October 2014

Vehicle Hire

Request to not comply with cost containment measures

NOT APPROVED

After careful consideration of the SSA’s request to deviate from paragraph 4.17 of the treasury instruction the National Treasury found that there were no compelling reasons to grant a blanket approval as deviations can only be considered for approval on case by case basis.

6 October 2014

Department of Defence

Team building (sponsored events)

NOT APPROVED

There are no compelling reasons.

20 October 2014

The aim for the request was to obtain National Treasury’s approval to utilise sponsorships in kind for the Inter Departmental Potjiekos event.

Department of Justice & Constitutional Development

Deviations From Cost Containment Measures Related To Judges

APPROVED

Given the constitutional independence of the courts, separate from the legislative and executive arms of the state, and specific laws regulating the appointment and conditions of service of judges and magistrates, it is clear that the members of the judiciary are not employees of the DoJ&CD. Therefore paragraphs 4.6 and 4.22 of the NT Instruction do not apply to the members of the judiciary and there is no need for a deviation.

30 January 2014

Department of Military Veterans (DMV)

Accommodation Cost

NOT APPROVED

After careful consideration and taking into account paragraph 4.16 of the National Treasury Instruction 01 of 2013/2014, the National Treasury has found that there were no compelling grounds on which to grant an exemption. The accounting officer of DMV is further advised to ensure that appropriate expenditure control measures are in place and the spirit of containing costs is prioritised within the department at all times.

4 February 2014

The DMV is experiencing problems with finding domestic hotel accommodation for a maximum amount of one thousand three hundred per night per person especially in the main cities such as Cape Town, Durban, Polokwane, Nelspruit etc. This is having a negative impact on service delivery in the DMV.

Mpumalanga Gambling Board

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures (Domestic Hotel Accommodation; Hiring of Vehicles and Entertainment allowances & Social functions)

NOT APPROVED

National Treasury reviewed and assessed the Department’s requests and found that there were no compelling grounds on which to grant any exemption.

18 February 2014.

Hotels around Mpumalanga at or below the rate of R1300 including dinner are generally not conducive for our board members because of safety issues, and other practical factors which have been raised by board members and board committee members

Group ‘B’ cars are considered not adequately safe for trips to certain areas, and for long distance travel, the resultant health and safety risks created by use of substandard vehicles are unacceptable to the board.

The nature of the MGB is such that the Executives are expected to host other stakeholders from time to time and in the normal course of business, therefore the R2000 limit is viewed as insufficient in certain instances.

The MGB conducts wellness functions and sports days twice a year at least as a form of teambuilding initiatives. It has been a tradition and included as part of staff retention policies of this organization that annual yearend functions are observed.

Eastern Cape DoLGTA

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures(Domestic Hotel accommodation

NOT APPROVED

National Treasury reviewed and assessed the Department’s request and found that there were no compelling grounds on which to grant an exemption

02 October 2014

The MEC had appointed an external investigation team to internally investigate issues raised by a labour union in the department and the department was responsible for the accommodation thereof, the preferred place of accommodation was the East London Garden Court of which the cost was exceeding R1 300 limit.

Eastern Cape Social Development

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures(Domestic Hotel Accommodation

NOT APPROVED

National Treasury reviewed and assessed the Department’s request and found that there were no compelling grounds on which to grant an exemption

05 November 2014

Few challenges encountered by the department with regards to accommodation when trying to implement the NT instruction.

EC Provincial Treasury

Request for condonation of irregular expenditure incurred due to non-compliance with the national treasury instruction 01 of 2013/2014: cost containment measures – Accommodation(irregular expenditure amounting to R161 860.91)

NOT APPROVED

No other compelling reasons to condone the Irregular Expenditure

05 June 2015

There was value for money derived from the transaction.

EC Provincial Treasury

Request for condonation of irregular expenditure incurred due to non-compliance with the national treasury instruction 01 of 2013/2014: cost containment measures – Accommodation(irregular expenditure amounting to R279 896.30)

APPROVED

The entity was only aware of the instruction only after the orders were placed

05 June 2015

The entity was only aware of the instruction only after the orders were placed

EC Cooperatives Department and Traditional Affairs

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures - Hotel Accommodation and Hiring of Vehicles

NOT APPROVED

National Treasury reviewed and assessed the Department’s request and found that there were no compelling grounds on which to grant an exemption

11 August 2015

Rooms currently sourced at the limit rate of R1300 are not suitable for employees at level 15 and above.

Group B rental cars not comfortable and affects effective participation by level 15 and above officials in crucial meetings.

Public Investment Corporation

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures - International and Specialised Consulting Services and Hiring of Vehicles

Approved in terms of section 79 of the PFMA

National Treasury granted the entity a departure from paragraph 4.2 of Treasury Instruction 1 of 2013/2014 as it relates to the remuneration of specialised and international consultants.

Group C vehicles may only be hired when 3 or more persons are going to travel in the vehicle.

11 April 2014

Expenditure relates to the remuneration of specialised and international consultants.

The Travel Policy of the PIC limits car hire to Group B for all employees and only provides for employees to hire Group C in instances where more than one person is going to travel in the vehicle. Group C vehicles may only be hired when 3 or more persons are going to travel in the vehicle.

Public Investment Corporation

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures - Hotel Accommodation; Travel and Subsistence and Expenses related to entertainment allowances and events.

NOT APPROVED

There were no compelling reasons on which to grant an exemption

11 April 2014

The entity has its only policy limiting the costs of accommodation to R2 000 per night.

The entity claimed that business class provides flexibility and it is reliable and employees are able to work on arrival to their destinations.

The entity claimed that the set allowance for entertainment is not sufficient for entertaining potential key or foreign clients and high level delegations.

South African Revenue Services (SARS)

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures–Accommodation, travel and related costs; Consultants’ and Employee’s travel and subsistence costs; Expenses related to catering and events; Team Building

NOT APPROVED

National Treasury could not grant a blanket departure

04 April 2014

SARS was of the view that the accommodation clause only apply to Time-Based Contracts and not Lump Sum(Firm Fixed Price) Contracts and no suitable accommodation for SARS officials;

SARS wanted to accommodate disabled officials in selection of suitable cars to be used to travel for officials purposes;

SARS was hoping NT can re-consider the impact of the removal of social functions, team building exercises and year-end functions on employee satisfaction.

South African Revenue Services (SARS)

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures - Fees/rates and related costs

APPROVED

The National Treasury noted that SARS operates in a highly specialised and competitive industry which is unregulated and also strives at all times to procure services of consultants through appropriate processes. After careful consideration, the National Treasury granted SARS a departure

04 April 2014

SARS operates in a highly specialised and competitive industry which is unregulated and also strives at all times to procure services of consultants through appropriate processes. SARS find it not always possible to find appropriate experts within the parameters of the Public Service remuneration scales.

Transnet

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures - Travel and Subsistence

NOT APPROVED

Blanket departures are not provided especially where there are financial implications. Such departures are only considered on a case by case basis after considering the motivations provided by the applicants.

16 May 2014

Transnet claimed that effectively the Business Class flight option as per their current Transnet travel policy would be the most cost effective for them.

Financial Intelligence Centre

Request for deviation, expenditure in excess of the maximum threshold for domestic hotel accomodation

NOT APPROVED

National Treasury did not find any compelling reasons to condone the irregular expenditure relating to expenditure in excess of the maximum threshold for domestic hotel accommodation of R1300

24 June 2015

Limited accommodation option

Financial Intelligence Centre

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures – accommodation

NOT APPROVED

National Treasury did not find any compelling reasons to condone the irregular expenditure relating to expenditure in excess of the maximum threshold for domestic hotel accommodation of R1300

16 April 2015

The cheapest accommodation was more than R1300

Financial Services Board

Request for deviation from the national treasury instruction 01 of 2013/2014: cost containment measures – accommodation

APPROVED

22 April 2015

It was impractical to book FSB delegates out of Sun City as delegates were required to arrive early at the conference and leave late and the roads outside Sun City can be dangerous.

Department of Science and Technology

National Department

Request to deviate from paragraph 4.15 Domestic accommodation of R1300 per night.

NOT APPROVED

No compelling grounds on which to grant an exemption as R1300 is reasonable amount to pay for domestic accommodation.

12 March 2014

Inkomati Catchment Management Agency (ICMA)

Schedule 3A entity

Request to deviate from paragraph 4.26 to arrange a team-building event.

NOT APPROVED

No compelling grounds on which to grant an exemption, advised to ensure appropriate expenditure management control measures are in place.

25 March 2014

National Research Foundation (NRF)

Schedule 3A entity

Request for exemption from Treasury Regulation 31.2.5 in order to use multiple credit cards and travel lodge card per geographic location.

NOT APPROVED

No compelling grounds on which to grant an exemption as usage of alternative methods for payment will allow the entity to still meet its operational requirements.

28 November 2013

Operational requirements

National Urban Reconstruction and Housing Agency (NURCHA)

Schedule 3A entity

Request to deviate from paragraph 4.26 to arrange a team-building event.

NOT APPROVED

No compelling grounds on which to grant an exemption, advised to ensure appropriate expenditure management control measures are in place.

18 November 2014

Free State Provincial Treasury

Request to deviate from paragraph 4.7 and 4.8 regarding air travel.

NOT APPROVED

No compelling grounds on which to grant an exemption.

03 August 2015

Free State Provincial Treasury

Request to deviate from paragraph 4.15 and 4.16 for Executive member VIP Protectors to exceed limit of R1300 domestic accommodation per night.

APPROVED

Executive Member VIP Protectors need to be in close proximity to their assigned Executive Member and to fulfil their duties cannot be in different accommodation to the Executive member

10 December 2014

Department of Trade and Industry

Delegation of any deviation from paragraph 4.6 of the Treasury Instruction No 1 of 2013/2014 to the Director-General of the Department of Mineral Resources (to approve business class travel)

NOT APPROVED

The National Treasury does not grant blanket approvals for institutions to deviate from cost containment measures as this process has to be done on a case by case basis. It is also worthy to note that approvals for deviations in terms of section 79 of the PFMA cannot be sub-delegated to any other functionary unless directed otherwise by the Minister in terms of section 10 of the PFMA.

04 September 2014

Department of Transport

(ACSA and ATNS)

Deviation from the rates that were prescribed in paragraph 4.2 of the National Treasury Instruction 01 of 2013/2014.

NOT APPROVED

DoT requires the services of an accounting firm. DoT should consider another organ of state like the Council for Scientific and Industrial Research (CSIR) to provide the required service?, If no other organ of state can provide the required service, then DoT can proceed to acquire the services of an appropriate service provider in line with relevant supply chain management prescripts and taking into account the paragraph 4.2 of the National Treasury Instruction 1 of 2013/2014.

10 March 2014

Department of Trade and Industry

Deviation from the amount of R1300 per night for domestic accommodation in paragraph 4.15 of the National Treasury Instruction 01 of 2013/2014.

NOT APPROVED

The contents of Treasury Instruction No.1 of 2013/2014 on Cost Containment Measures was consulted extensively with Cabinet, the Minister’s Committee on the Budget and with the Director-General of The Presidency, all who agreed that R1300 was a reasonable amount to pay for domestic accommodation.

12 February 2014

Department of Energy

Approval to deviate from the following paragraphs:

Paragraph 4.6 and 4.7 as there are persons with special needs in the department.

NO DEVIATION REQUIRED

Paragraph 4.9 of the Treasury Instruction provides for the accounting officer to approve the purchase of business class tickets for employees with disabilities or for those with special needs. Deviation is therefore not required in this instance.

6 March 2014

Paragraph 4.8 as there are circumstances when the Minister/Deputy Minister or the DG needs to be accompanied by officials who do not qualify as per this paragraph.

APPROVED

Business class tickets may be purchased for the Minister, Deputy Minister, the Director-General and any advisor to the Minister appointed in terms of section 12A of the Public Service Act, 1994.

Paragraph 4.15 as the department finds it extremely difficult to obtain accommodation at the rate of R1 300 per night per person (including dinner, breakfast and parking).

NOT APPROVED

The contents of Treasury Instruction No.1 of 2013/2014 on Cost Containment Measures was consulted extensively with Cabinet, the Minister’s Committee on the Budget and with the Director-General of The Presidency, all who agreed that R1300 was a reasonable amount to pay for domestic accommodation.

Independent Communications Authority of South Africa (ICASA)

Constitutional Institution

Request to deviate from paragraph 4.26 to arrange a team-building event.

NOT APPROVED

No compelling grounds on which to grant an exemption, advised to ensure appropriate expenditure management control measures are in place.

11 December 2014

Operational requirements

North West Provincial Treasury

Accommodation cost: The accounting officer to approve amounts in excess of R 1300 in line with paragraph 3(a) and 3(b) of Treasury Instruction.

To allow delegates to sleep at the same venue where the organised event is hosted.

NOT APPROVED

The National Treasury found no compelling reasons to grant a blanket approval of a higher limit of R 1800 for urban businesses that are not registered in the rural Supply Chain Management data base.

The cost containment does not prohibit the use of accommodation in the same venue where there is a conference or other non-specifies event provided that the department has complied with the supply chain management and cost containment measures.

09 December 2014

NW wanted to have two different accommodation limits for rural as opposed to city hotels. They wanted a higher rate of R1800 for city hotels.

To support the organised central venue for accommodation ad also be allowed to meet the expected cost charged by the supplier

North West Provincial Treasury

Approval for the Head of Department to reside in the same hotel as Executive Authority as a Private Member of stuff in terms of chapter 8, paragraph 1.1.1 & 1.1.2 of the Ministerial handbook.

NOT APPROVED

The National Treasury found no compelling reason to grant a blanket approval for the Head of Department to reside in the same hotel as the Executive authority and it is worthy to mention that the Head of Department does not fall within the category of private stuff member for the Executive authority.

09 December 2014

They wanted accomplice staff to the Executive authority including the Head of Departments not to be restricted by the Cost containment measures in this regard.