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Hansard: NCOP: Consideration of Report of Select Committee on Finance - Agreement Between the Government of the Republic of South Africa and the Argentine Republic for the Exchange of Information Relating to Tax Matters with Explanatory Memorandum

House: National Council of Provinces

Date of Meeting: 01 Oct 2014

Summary

No summary available.

Minutes

WEDNESDAY, 1 OCTOBER 2014

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

[UNREVISED HANSARD]

Page: 1

 

 

 

 

TUESDAY, 1 OCTOBER 2014

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

___________

 

The Council met at 10:05.

 

The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.

NOTICES OF MOTION

 

START OF DAY

 

 

 

 

NOTICES OF MOTION

 

Mr W F FABER: Deputy Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

 

     That the Council–

 

(1)         notes the statement made by the ANC ad hoc committee on Nkandla that President Zuma will not have to pay back any money; and

 

(2)         further notes that this vindicates the opposition’s decision to withdraw from this committee, as this ad hoc committee became a sham as the ANC made it crystal clear that they would protect President Zuma at all costs.

Ms L C DLAMINI
Mr W F FABER

 

 

 

 

Ms L C DLAMINI: Hon Chair, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the ANC:

 

That the Council–

 

(1)         notes and debates mechanisms to ensure that municipalities and water entities are adequately geared up to supply constant water to communities;

 

(2)         further notes that several communities across South Africa have been experiencing water shortages and that the water supply in Gauteng has been restored due to the intervention of the Minister of Water and Sanitation, the hon Nomvula Mokonyane; and

 

(3)         takes this opportunity to commend Minister Mokonyane for her decisive leadership in addressing the water crisis in Gauteng.

Mr M J MOHAPI

 

Ms L C DLAMINI

 

 

 

 

Mr M J MOHAPI: Hon Chair, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the ANC:

 

That the Council—

 

(1)         debates the continuing vandalism and theft of service delivery infrastructure in South Africa; and

 

  1. further notes that communities across South Africa are left without electricity and water due to the theft of service delivery infrastructure, such as cables and copper pipes, which results in the disruption of services to communities;

 

  1. recognises that hundreds of commuters across South Africa experience the disruption in transport infrastructure, such as trains and traffic lights, due to cable theft and vandalism; and

 

(4)      takes this opportunity to call on the police and communities across South Africa to heighten the protection of public infrastructure and ensure that those who continue to steal public infrastructure are not only named and shamed but also brought to book to face the full consequences of their selfish deeds.

Mr E MAKUE

 

Mr M J MOHAPI

 

 

 

 

Mr E MAKUE: Deputy Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the ANC:

 

That the Council—

 

(1)      notes the tragic deaths of about 80 South Africans, and that scores of others sustained injuries after a building at the Synagogue, Church of All Nations in Nigeria collapsed on Friday, 12 September 2014;

 

(2)      further notes that it is estimated that over 300 South Africans were staying in the four-storey guesthouse on the grounds of the church when it collapsed while workers were adding two more storeys;

 

(3)      takes this opportunity to convey our heartfelt condolences to the families of the deceased and wishes those injured a speedy recovery; and

 

(4)      further takes this opportunity to express our utter dismay at the manner in which the church and authorities in Nigeria responded to this tragic incident.

The CHIEF WHIP OF THE COUNCIL

 

Mr W F FABER

 

 

 

 

EFF INTERDICT DISMISSED BY WESTERN CAPE HIGH COURT

(Draft Resolution)

 

The CHIEF WHIP OF THE COUNCIL: Deputy Chairperson, I hereby move without notice:

 

That the Council—

 

  1. notes that the Western Cape High Court has dismissed an urgent interdict by the EFF seeking to stop Parliament from holding an inquiry into the behaviour of 20 EFF Members of Parliament, who disrupted the question session to the President in the National Assembly on 21 August;

 

  1. further notes that the EFF approached the Western Cape High Court on Monday in an attempt to seek an interdict against a hearing of Parliament’s Powers, Privileges and Immunities Committee that will investigate the conduct of the 20 Members of Parliament; and

 

(3)      takes this opportunity to welcome the ruling as one of the first attempts to send a clear message to Members of Parliament that courts will not entertain attempts to abuse the judiciary to shield their ill discipline and utter disregard of the Rules and the decorum of Parliament.

 

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Is there any objection to the motion? There is. So, in light of the objection, the motion shall not be proceeded with and will be treated as a notice of a motion.

Ms E C VAN LINGEN

 

The CHIEF WHIP OF THE COUNCIL

 

 

 

 

NO NEW ADDITIONAL POSTS FOR INTRODUCTION OF AN AFRICAN LANGUAGE IN EASTERN CAPE SCHOOLS

(Draft Resolution)

 

Ms E C VAN LINGEN: Deputy Chairperson, I move without notice on behalf of the DA:

 

That the Council—

 

  1. notes that the Eastern Cape MEC for Education, Mandla Makupula, this week declared that the post provisioning for 2015 will remain the same as for 2014 with no new additional posts for the introduction of an African language;

 

  1. further notes that there will be 55 796 posts for educators and 7 080 posts for nonteaching staff;

 

  1. further notes that over 2 000 posts are currently still vacant and that schools must receive and verify their pre-final post provisioning;

 

  1. acknowledges that the department aims to issue final post establishments in the third week of October, which will leave very little time for the schools to plan their budgets for next year; and

 

  1. debates the position of the Eastern Cape department of education to manage its mandate and that it revisits the administration intervention options as there will not be a teacher in every classroom in 2015.

 

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Is there any objection to the motion? There is. In light of the objection, the motion shall not be proceeded with and will now be treated as a notice of a motion.

Mr G MICHALAKIS

 

Ms E C VAN LINGEN

 

 

 

 

WESTERN CAPE CONFIRMED AS BEST-RUN PROVINCE

(Draft Resolution)

 

Mr G MICHALAKIS: Hon Chairperson, I move without notice on behalf of the DA:

 

That the Council—

 

(1)      notes that Free State Premier Ace Magashule has proven that being a shrewd politician does not automatically translate into being a good premier;

 

(2)      further notes that the Free State provincial government, under his leadership, dropped five places in overall good governance and performance indicators in one year, according to the National Department of Performance Monitoring and Evaluation’s annual Management Performance Assessment Tool, Mpat, for the 2013-14 financial year;

(3)      observes that the province scored an overall 60% below the line for partial to total noncompliance with key indicators;

(4)      congratulates, on the other hand, Western Cape Premier Helen Zille on this DA-run province being confirmed the best-run province in the country for the second year running, by the same government report; and

(5)      finally notes that where the DA governs, it governs better and more effectively, a government that delivers because it cares about its people, in sharp contrast with its dreadful ANC counterparts.

 

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Is there any objection to the motion? Yes, there is. In light of the objection, the motion shall not be proceeded with and will now become a notice of a motion.

Ms T K MAMPURU

 

Mr G MICHALAKIS

 

 

 

 

FALSE REPORTS ABOUT CHIEF WHIP OF EFF

(Draft Resolution)

 

Ms T K MAMPURU: Deputy Chairperson, I hereby move without notice:

 

That the Council—

 

  1. notes with utter dismay reports that the Chief Whip of the EFF in the Limpopo provincial legislature, the hon Jossey Buthane, assaulted a fellow party member, Rudzani Ntwampe, at an EFF meeting in Mahwelereng township outside Mokopane in Limpopo;

 

  1. further notes that the Chief Whip of the EFF has undertaken to hand himself over to the police tomorrow after several attempts by the police to locate him; and

 

  1. takes this opportunity to condemn, in the harshest possible terms, the conduct and action of the EFF Chief Whip which is a manifestation of the culture of ill discipline by members of the EFF.

 

The DEPUTY CHAIRPERSON OF THE COUNCIL (Mr R J Tau): Any objection to the motion? There is. So, in light of the objection, the motion shall not be proceeded with and will become a notice of a motion.

Mr B G NTHEBE

 

Ms T K MAMPURU

 

 

 

 

CHURCH IGNORES ORDERS TO STOP CONSTRUCTION OF SECOND STOREY

(Draft Resolution)

 

Mr B G NTHEBE: Deputy Chairperson, I move without notice:

 

That the Council—

 

  1. notes reports that the Alleluia Ministries Church in Lyndhurst in Johannesburg has ignored two orders from the City of Johannesburg to stop the construction of a second floor on top of the existing buildings without building plans and with clear warnings that the property is not zoned as a place of worship;

 

  1. further notes that the church has also closed off a public street, Astra Road, claiming that it has permission from the Johannesburg Roads Agency;

 

  1. acknowledges that angry neighbours have been trying since 2009 to stop church activities which include loud noise over weekends, as well as traffic congestion at service times; and

 

  1. takes this opportunity to call on the City of Johannesburg to ensure that this matter is investigated with immediate effect, that every attempt is taken to ensure that innocent churchgoers are not exposed to danger and that the City’s bylaws are respected and upheld.

 

Motion agreed to in accordance with section 65 of the Constitution.

Ms L C DLAMINI

 

Mr B G NTHEBE

 

 

 

 

KIDNAPPING OF NONZWAKAZI LUTHLI IN PROTEA GLEN, SOWETO

(Draft Resolution)

 

Ms L C DLAMINI: Deputy Chairperson, I move without notice on behalf of the ANC:

 

That the Council—

 

  1. notes the kidnapping of Ms Nonzwakazi Luthuli in Protea Glen in Soweto on 2 September 2014, while on her way to work at Chris Hani Baragwanath Academic Hospital;

 

  1. further notes that the kidnappers of Ms Luthuli have given her family two months to raise a ransom of R50 000;

 

  1. takes this opportunity to condemn in the harshest possible terms the kidnapping of Ms Luthuli; and

 

  1. calls on the police to mobilise all available resources to ensure that her kidnappers are found and brought to face the full might of the law.

 

Motion agreed to in accordance with section 65 of the Constitution.

Mr D L XIMBI

 

Ms L C DLAMINI

 

 

 

 

VIOLENT PROTEST IN HANGBERG, WESTERN CAPE

(Draft Resolution)

 

Mr D L XIMBI: Deputy Chairperson, I move without notice on behalf of the ANC:

 

That the Council—

 

  1. notes the eruption of violent protests in Hangberg in Hout Bay in the Western Cape province, where cars were set alight and buildings damaged early yesterday morning after a community member was arrested;

 

(2)           takes this opportunity to condemn in the harshest possible terms the destruction of private and public property, while acknowledging the constitutional rights of communities to protest and voice their discontent; and

 

 

 

(3)           calls on the people of Hangberg and the City of Cape Town to find an amicable, peaceful solution to this impasse.

 

Motion agreed to in accordance with section 65 of the Constitution.

Mr M RAYI

 

Mr D L XIMBI

 

 

 

 

PRESIDENTIAL IMBIZO VISITS PEOPLE OF PIETERMARITZBURG AND SURROUNDING AREAS

(Draft Resolution)

 

Mr M RAYI: Deputy Chairperson, I move without notice on behalf of the ANC:

 

That the Council—

 

  1. notes that President Jacob Zuma, accompanied by various Cabinet Ministers, the Premier of KwaZulu-Natal Senzo Mchunu, Deputy Ministers, provincial MECs, mayors and councillors, visited the people of Pietermaritzburg, and surrounding areas, as part of the Presidential Imbizo programme on 30 September 2014;

 

  1. further notes that the Presidential Imbizo took place at the Durban University of Technology’s campus in Imbali Township, where various departments did a service delivery expo to showcase services and provide on-site assistance to the public;

 

  1. takes this opportunity to welcome the commitment made by President Jacob Zuma to ensure that he rallies all spheres of government to move with speed to address service delivery and infrastructure challenges facing the community of uMgungundlovu District Municipality and surrounding areas; and

 

  1. expresses its profound appreciation to the people of Imbali Township and surrounding areas for coming in their numbers to meet the President.

 

Motion agreed to in accordance with section 65 of the Constitution.

Mr M J MOHAPI

 

Mr M RAYI

 

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - NOTICE OF INTERVENTION IN TERMS OF SECTION 139(1)(c) OF THE CONSTITUTION, 1996 TO INKWANCA LOCAL MUNICIPALITY, EASTERN CAPE

 

Mr M J MOHAPI: Deputy Chair, allow me to take this opportunity to say upfront that the report I will be presenting has been unanimously agreed upon by the select committee. It is a report with a background that has to do with an intervention in terms of section139(1)(c) of the Constitution at Inkwanca Local Municipality. This is intended to bring about co-operative governance with the government to bring about the desired normality of good governance, accountability and compliance in the area.

 

The chronic collapse of the municipality’s political and administrative apparatus has prompted the government to overhaul the municipal state of performance so as to enhance service delivery implementation. Given the conduct of the council and the fact that all attempts to reason with the local political leadership have degenerated to an eventual crossroads, it has been conclusively evident that the best course of action is to remove the existing municipal council from the institution of government. This is a measure to speed up the resumption of service delivery and resuscitation of the dwindling, local economy.

 

The MEC responsible for co-operative governance and traditional affairs in the Eastern Cape has, in compliance with the resolution of the provincial executive council, PEC, submitted a comprehensive motivation citing, in very clear detail, sufficient reasons that have led the PEC to embark on this particular measure as the only option left to rescue the municipality from any further collapse.

 

The current spate of municipal governance, accountability and compliance challenges affecting the functionality of this municipality are so exceptional that it has proven beyond any doubt that the decision to invoke the provision of section 139(1)(c) of the Constitution is justifiable. All attempts at bringing about normality in this municipality have yielded negative results, while service delivery is being compromised.

 

The inherent dysfunctions have triggered a series of violent service delivery protests. The communities of both Molteno and Sterkstroom are questioning the calibre of the political leadership at the helm of the municipality. They also argue that local businesses are closing down in preference for towns and areas where there is a stable local government environment. A lot of damage and harm has culminated in an upsurge of apathy by the local community against their municipality - rising up against an institution that, as a result of the conduct of the council, is nowhere near fully addressing the community’s basic service delivery needs.

 

The Eastern Cape administration, through the provincial department of co-operative governance, has done everything it can to help and to provide them with the necessary hands-on support, guidance, mentoring and capacity building to improve the state of governance and compliance in this municipality.

 

A forensic investigation was commissioned in terms of the provision of section 106 of the Local Government: Municipal Systems Act, to investigate all issues of noncompliance and maladministration in this municipality. Instead of embracing measures to ensure accountability, good governance and compliant administration, the council rejected the findings and recommendations of the investigating report. The provincial administration resorted to the High Court for an order compelling the council to comply with the requirements of the law with regard to the implementation of the recommendations. Instead, the Inkwanca Municipal Council challenged the High Court action using municipal funds.

 

The activities of the council have proved to be so disruptive and detrimental to the community they purport to be serving, they have, unilaterally, decided to change the seat of the Inkwanca Local Municipal administration from Molteno to Sterkstroom. As part of this unilateral decision, the council removed the municipal IT server from Molteno to Sterkstroom, causing a further disruption of their municipal operational activities, which led to poor revenue collection and the inability to implement its billing system.

 

Regarding key issues that have necessitated this particular intervention, the MEC for co-operative governance and traditional affairs in the Eastern Cape province has accordingly submitted comprehensive reasons that have triggered this particular intervention in term of section 139(1)(c) of the Constitution. This decision may, at face value, appear very harsh and drastic, yet it is the very option that the province is left with after having done everything possible in its intervention to reposition the municipality.

 

There has been no will on the part of the local municipal political leadership to decisively perform oversight of municipal performance - to an extent that tolerance of wrongdoing has become the norm in that municipality. Many opportunistic tendencies creeping in add further to the sinking situation.

 

While this report is not about detailing all the endemic malpractices in the municipality, key amongst these is that the committee has noted some of the tabulated hearings as warranting decisive provincial intervention at the level of the MEC and the PEC in the Eastern Cape. Therefore, some of the reasons that warranted the intervention include the following: As a result of the conduct of the council, the municipality has for some time being plagued by continuous labour unrests and community protests. These have impinged upon the functionality of the municipality in the area of service delivery, provision of basic services and sheer absence of oversight.

 

Secondly, abuse of power by council which led to an illegal suspension of municipal employees, especially those viewed to be in favour of the forensic report, recommendations and findings.

 

Thirdly, orchestrated pro-mayor, pro-municipal manager and antiforensic report public protests in Sterkstroom. This was a clear sign of collusion behaviour and conduct between the council and administrative head of the municipality who, as an accounting officer, is, by law, supposed to raise issues of noncompliance with the council.

 

Use of municipal funds to forge ahead and contest the outcome of the forensic investigation, bringing on board a team of two advocates, a senior counsel and a junior, at a high cost to the municipality. Indeed, wasteful expenditure.

 

A disregard of the court order which required the development, adoption and implementation of the detailed remedial plan to address the adverse findings contained in the forensic investigation report. This includes the reversal of irregular appointments; recovery of irregular and wasteful expenditure and also disciplinary action against all transgressors; deliberate failure and refusal to fulfil or exercise executive obligations in terms of the Constitution, the Local Government: Municipal Systems Act and the Municipal Finance Management Act; contravention of Regulation 5 of the Local Government: Disciplinary Regulations for Senior Managers by failing and refusing to initiate necessary disciplinary processes against the municipal manager despite, evidence in the forensic investigations report.

 

Contravention of sections 4{2) and 4(3) of the Local Government: Municipal Systems Act by not respecting the rights of our citizens and those of other persons protected by the Bill of Rights in the exercise of its executive and legislative authority; abrupt disconnection of electricity supply to Molteno-based entities, and threats of disconnection of public hospitals and schools. There is also a very huge service delivery backlog, high consumer debts, poor revenue and expenditure management collection and billing system.

 

In terms of section 139 (1)(c) the Constitution states:

 

When a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure fulfilment of that obligation including –

 

(c)        dissolving a Municipal Council and appointing an administrator until a newly elected Municipal Council has been declared elected ...

 

The NCOP then referred the notice of intervention in the Inkwanca Local Municipality to their Select Committee on Co-operative Governance and Traditional Affairs, which sat on 29 September 2014 for consideration, as required in terms of Rule 101. In terms of the Constitution, a dissolution would only take effect 14 days from the date of receipt of notice by the NCOP, unless it is set aside by the Cabinet Minister responsible for local government or the NCOP before the expiry of such 14 days.

 

The select committee, noting the substantive evidence presented by the MEC of Co-operative Governance and Traditional Affairs in the Eastern Cape; the abuse of authority by council of this municipality; the unanimity of stakeholders with regard to the conduct of the council; the need for a lasting solution; and the need to restore stability, service delivery and other corrective measures, in a meeting held on 29 September 2014 unanimously resolved to endorse the intervention of Inkwanca Local Municipality in terms of section 139(1)(c) of the Constitution of the Republic.

 

The committee thereupon, in its recommendation, has taken full account of all relevant factors, including the inherent challenges reflected by the PEC letter of request for the approval of the intervention by the NCOP. This includes having regard to the inherent success of the issues ...[Time expired.]

 

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Hon member, can you summarise?

 

Mr M J MOHAPI: On the basis of the report before us, as the select committee, we wish to recommend the following: Firstly, that the NCOP approves the intervention of Inkwanca Local Municipality in the Eastern Cape in terms of section 139(1)(c).

 

Secondly, that before the newly elected municipal council is declared elected, the administrator, duly appointed, should identify institutional capacity and skills inherent in the municipality in relation to the executive obligation to that municipality where that municipality has failed to fulfil. If the municipality lacks the necessary capacity and skills for fulfilment of this obligation, it should assist the municipality in acquisition of such needs.

 

Lastly, the Eastern Cape MEC for co-operative governance and traditional affairs should provide and table periodic progress reports to the NCOP and the Eastern Cape Provincial Legislature on the status of progress with regard to the work of the administrator and the challenges that continue to exert pressure on the ability of both such an administrator and the province to realise a desired outcome. I thank you. [Time expired.]

 

Question put: That the Report be adopted.

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

Report accordingly adopted in accordance with section 65 of the Constitution.

Mr M J MOHAPI

 

The DEPUTY CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES

 

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - AFRICAN CHARTER ON THE VALUES AND PRINCIPLES OF THE PUBLIC SERVICE AND ADMINISTRATION WITH EXPLANATORY MEMORANDUM.

 

The DEPUTY CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: Hon members, I am aware that you have been recalled for this special sitting during a constituency period, but you are cold! Alright, hon Mohapi.

 

Mr M J MOHAPI: Chairperson, allow me to present before the House the statement on the African Charter on the Values and Principles of Public Service and Administration. Over the past few years, African Ministers responsible for the Public Service and Administration have embarked on an initiative to sustain African collective efforts and support for the national public administration of African countries, by spearheading an agenda for the reform and transformation of the Public Service in Africa. South Africa, as an integral part of the African continent and community, actively took part in this noble initiative for the complete transformation of the African Public Service.

 

This innovative Public Administration initiative in African Public Administration system and reforms led to the establishment of an African Charter on the Values and Principles of Public Service and Administration. This was a product of a Pan-African Conference of Ministers for the Public Service. The charter, which has come into being, symbolises the African collective effort based on African collective experience of the African Public Service. It is a response to the challenges of the need for the transformation of Public Service delivery - a Public Service delivery ethos that puts people first as a fundamental reality of any Public Service, globally.

 

As a product of the Pan-African Public Service Ministers, the charter, on these basic principles, is a framework and a tool that serves as the country’s guide for the Public Service practices, codes and standards for Public Service and Administration in Africa. Ministers of member states have accordingly committed to work collectively and co-operatively to enhance governance, accountability and Public Service effectiveness across the African continent.

 

The Pan-African Conference held in Morocco in December 1998, ushered in this historical landmark for African Public Administration, setting out the context and foundation for the establishment of an African Charter for the Public Service in Africa. This charter was accordingly formerly adopted at the 3rd Pan-African Conference of Ministers for Public Service held in Windhoek in February 2011.

 

Given the enormity of this task, it is most appropriate to reflect on what the role of the South African government has been, and where we are now, as a country, in ratifying and adopting the charter for the country’s use. As we all know, we have traversed the past in the transformation of the Public Service for the effective and efficient delivery of services in a manner that recognises the heritage and diversity of our society.

 

The Minister responsible for the Public Service and Administration has, on behalf of our country, actively participated in this initiative. It will be remembered that, by the time of his tenure in the country’s history of Public Service transformation, South Africa was already being recognised as a leader when it comes to issues of transformational challenges. By then, as a country, we had already published many policy documents accompanied by a series of comprehensive Public Service regulations and value-adding amendments to the Public Service Act, as we know. The White Paper on the transformation of Public Service delivery was already being implemented across the provinces.

 

In order to align the African Charter with the policy prescript of the Republic, a deliberate effort was made to infuse South African Batho Pele principles into the African Charter. As such, the content of the African Charter on Values and Principles of Public Service and Administration is a replica of South Africa’s policy framework on the transformation of the Public Service. It uses Batho Pele principles for the transformation of Public Service delivery as a baseline instrument and tool.

 

The ratified charter, as it stands, is thus an exhibit of a value-adding role that South Africa has played in the African public administration transformation initiative. It is appropriately positioned therefore to fully serve as a basic grid plan, an instrument for the transformation of the African Public Service, while the leadership role of South Africa is cherished. It has to be acknowledged that the charter, as it currently stands, is a product of a broad, collective and a consultative process. South Africa led the way through project facilitation by convening the Southern African Development Community seminar on the charter.

 

The components and elements of the charter are broadly based on the following. Firstly, definitions, objectives, principles, duties of the Public Service and Administration, Code of Conduct for the Public Service agents, rights of Public Service agents, management and development of human resources, and final clauses.

 

The 16th Ordinary Session of the Assembly of the African Union has ratified the African Charter - this being the most fitting methodology for the eventual adoption of the charter. There are, reportedly, 19 countries that have signed the charter, to date. Although other member states have not yet signed the charter, it is nevertheless most appropriate to say that when all have done so, the Charter will herald another chapter in the African Public Service ethos.

 

Several African leaders have already declared this phase a period and a decade of shared values amongst African countries. As a consequence, most African countries regard the African Charter on Values and Principles of Public Service and Administration as a framework to guide the transformation of African Public Service, meant for efficient and effective service delivery to the diverse African population. It is an instrument for the improvement and transformation of Public Service delivery.

 

Secondly, combating and eradication of fraud and corruption; thirdly, protection of the rights of citizens as users of the Public Service; and lastly, promotion of good governance, accountability, integrity and sustainable development.

 

The select committee has, on behalf of the NCOP, considered the charter, as presented to it by the hon Minister for the Public Service and Administration, having regard to its relevance to South Africans as an active participant in most African initiatives for the transformation of the African landscape. This includes the Public Service, internally, in our country, and across the African continent. The committee endorsed and recommends the approval and ratification of the African Charter by the government. Based on the legal processes, as duly followed by the state law advisers and the National Assembly, South Africa will now be one of the signatories to the African Charter.

 

In conclusion, the constituent elements of the African Charter are, contextually, what the country has already implemented, going forward. Part of the new initiatives in the improvement of the entire Public Service are through the new Public Administration Amendment Bill. This  is exactly part of the essential elements of the charter which have to be implemented.

 

The Public Service Act has thus undergone a series of key amendments to cater for these new challenges for the complete transformation of the entire Public Service. South Africa will continue to remain a leader of and initiator for change on the continent, as all countries across the globe look at South Africa to lead on our African continent. I thank you. [Applause.]

 

Question put: That the Report be adopted.

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

Report accordingly adopted in accordance with section 65 of the Constitution.

Ms T MOTARA

 

Mr M J MOHAPI

 

 

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE – SOUTHERN AFRICAN DEVELOPMENT COMMUNITY AGREEMENT ON ASSISTANCE IN TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE – ANNEXURE E TO THE  SACU, AGREEMENT ON MUTUAL ADMINISTRATIVE ASSISTANCE WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE – AFRICAN TAX ADMINISTRATION FORUM AGREEMENT ON MUTUAL ASSISTANCE IN TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

Ms T MOTARA: Deputy Chair, for the past decades, Africa has been in the process of promoting unity, enhancing economic growth and strengthening the economic independence of the African continent. Numerous initiatives have been put in place to achieve the self-sufficiency of African countries. Amongst them is the promotion of intra-African trade. The National Development Plan, NDP, also aims at strengthening intraregional trade in Southern Africa, from 7% of trade to 25% of trade, by 2030. Necessary instruments to facilitate trade and investment are important in the region to enhance co-operation.

 

Section 231(2) of the Constitution of South Africa stipulates that an international agreement binds the Republic only after it has been approved in both Houses, the National Assembly and the National Council of Provinces. Therefore, every year, the Select Committee on Finance considers agreements referred to it by the House. This is done through engagements with the SA Revenue Service, Sars and the National Treasury. This statement aims to provide feedback to the House and communicate its recommendations.

 

The purpose of the African Tax Administration Forum, Ataf, is to allow for the effective exchange of information and assistance between the tax authorities of the member states which are parties to the agreement; and to increase co-operation amongst tax authorities to combat tax avoidance and evasion. The co-operation includes the exchange of information, simultaneous tax examinations and tax examinations abroad, recovery of tax claims, mutual agreement procedure and facilitation of joint audits.

 

On the Southern African Development Community, SADC Agreement on Assistance in Tax Matters, the SADC Protocol on Finance and Investment requires SADC members to have an effective and efficient process to share and exchange information relating to tax matters. This aims to assist in collecting taxes and in the implementation of mutual agreement procedures. The agreement allows SADC members to share information on all tax levied on income, capital, goods and services within the region. This will allow SADC countries to increase their national income and thus benefit their fiscal positions. The SADC Ministers of Finance and Justice have agreed to the SADC agreement.

 

The ratification of the Southern African Customs Union, Sacu, Agreement is aligned to South Africa’s commitment to international customs co-operation, regional integration and enabling a regional legal framework for the customs union. In terms of the Sacu Agreement, member states shall afford each other mutual administrative assistance to enforce customs laws and combat customs offences.

 

The Select Committee on Finance, having considered the Sacu, SADC and Ataf agreements, recommends that the House approve them in terms of section 231(2) of the Constitution.

 

Question put: That the Reports be adopted.

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West and Western Cape.

 

Report of the Select Committee on Finance – Southern African Development Community Agreement on Assistance in Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report of the Select Committee on Finance – Annexure E to the Sacu Agreement on Mutual Administrative Assistance with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report of the Select Committee on Finance – African Tax Administration Forum Agreement on Mutual Assistance in Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

Mr S J MOHAI

 

Ms T MOTARA

 

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA TO IMPROVE INTERNATIONAL TAX COMPLIANCE AND TO IMPLEMENT FOREIGN ACCOUNT TAX COMPLIANCE ACT, THE ANNEXURES THERETO AND THE MEMORANDUM OF UNDERSTANDING AND EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE COOK ISLANDS FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF BELIZE FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF BARBADOS FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE ARGENTINE REPUBLIC FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

Mr S J MOHAI: Hon Deputy Chair, the introduction of section 231(2), as read out by the hon Motara, remains relevant, so I won’t go through it. By way of background information, the House referred the tax information exchange agreements between the governments of the Republic of South Africa and certain countries to the Select Committee on Finance for consideration and ratification. This statement aims to provide feedback to the House and to communicate its recommendations.

 

The main aim of the tax information exchange agreements is to encourage the exchange of information and clarify procedures and processes that are in place. This will allow the efficient exchange of tax-related information between South Africa and these countries. The agreements deal with the objectives, scope, jurisdiction and tax covered.

 

The countries are expected to provide assistance to each other by exchanging information with regard to the taxes covered in the agreement. These taxes can be identical or similar taxes charged in both countries. It should be done in a transparent, confidential and efficient manner. Furthermore, any information given should be relevant and accessible. Therefore, countries party to the agreement should be able to assess, enforce and collect tax from implicated parties.

 

The agreement between the governments of South Africa and the United States of America aims to improve tax compliance through mutual assistance in tax matters between the two countries. The exchange of information will be done automatically, as authorised by the convention between these countries, particularly as it relates to the avoidance of double taxation and the presentation of fiscal evasion on taxable income and capital gains.

 

This agreement stretches the scope on tax information exchanged through the Foreign Account Tax Compliance Act. The Act also allows these countries to obtain information on accounts held by South African taxpayers in the USA, and vice versa. These accounts can be those of an individual or an entity. The House will realise that these matters are emphasised, particularly in the post-2009 recession. The countries’ focus is on revenue collection in a manner that steps up their economic strength.

 

The Select Committee on Finance, having considered the request for ratification or approval by Parliament of these agreements, recommends that the House, in terms of section 231(2) of the Constitution adopted in 1996, approve these agreements. Thank you.

 

Question put: That the Reports be adopted.

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

Report on Agreement between the Government of the Republic of South Africa and the Government of the United States of America to Improve International Tax Compliance and to Implement Foreign Account Tax Compliance Act, the Annexures thereto and the Memorandum of Understanding and explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report on Agreement between the Government of the Republic Of South Africa and the Government of the Cook Islands for the Exchange of Information Relating to Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report on the Agreement between the Government of the Republic of South Africa and the Government of Belize for the Exchange of Information Relating to Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report on the Agreement between the Government of the Republic of South Africa and the Government of Barbados for the Exchange of Information Relating to Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report on the Agreement between the Government of the Republic of South Africa and the Argentine Republic for the Exchange of Information Relating to Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

MS T MOTARA

 

Mr S J MOHAI

 

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - PROTOCOL AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE REPUBLIC OF TURKEY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE KINGDOM OF SWAZILAND ON MUTUAL ASSISTANCE AND CO-OPERATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO VALUE-ADDED TAX WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE PRINCIPALITY OF MONACO FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE PRINCIPALITY OF LIECHTENSTEIN FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE KINGDOM OF LESOTHO ON MUTUAL ASSISTANCE AND CO-OPERATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO VALUE-ADDED TAX WITH EXPLANATORY MEMORANDUM

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - PROTOCOL AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME WITH EXPLANATORY MEMORANDUM

Ms T MOTARA: Hon Deputy Chair, section 231(2) of the Constitution of South Africa stipulates that an international agreement binds the Republic only after it has been approved by both Houses. With reference to this, herewith the statement on the Protocol Amending the Convention between the Republic of South Africa and India, as well as the Republic of South Africa and Turkey for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.

 

The House referred the Protocol Amending the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income between the Republic of South Africa and the following countries to the Select Committee on Finance for consideration and ratification: the agreement with India, signed at New Delhi on 4 December 1996; and the agreement with Turkey signed at Pretoria on 3 March 2005. This statement aims to provide feedback to the House and communicate its recommendations.

 

The core mandate of the Agreement on Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income is to ensure that contracting states exchange information concerning tax matters in order to prevent double taxation and tax avoidance. Therefore, the amendments done in this agreement ensures that bank secrecy or the absence or weaknesses of a domestic tax law are no longer obstacles to obtaining information. This amendment therefore allows full exchange of information, which was not the case previously.

 

The House also referred to the Select Committee on Finance the Value-Added Tax Agreements between the government of the Republic of South Africa and the following countries for ratification: firstly, the agreement with Lesotho; and secondly, the agreement with Swaziland.

 

The main aim of the agreement on Value-Added Tax Agreements is to ensure that contracting countries establish a refund system to administer the refund and assessment of tax. This refund system will reduce the administrative burden on tax; deter imports not being declared fully; and promote the harmonisation of a common customs procedure. Therefore, to achieve greater effectiveness of the agreement, contracting countries will have to exchange information and sign a memorandum of understanding, MOU. This MOU outlines the processes in administrating the value-added tax refund system between the SA Revenue Service, Sars, and the above countries’ revenue-collecting authorities.

 

The Select Committee on Finance, having considered the request for ratification or approval by Parliament of these agreements, recommends that the House, in terms of section 231(2) of the Constitution of the Republic of South Africa, 1996, approve these conventions and agreements. I thank you. [Applause.]

 

The DEPUTY CHAIRPERSON OF THE NCOP: Hon members, before we proceed, I wish to recognise the presence in the House, in the gallery, the Speaker of the Legislature of the state of Andhra Pradesh, Dr Kodela Siva Prasad Rao. [Applause.] He is accompanied by the Consul-General of India, Mr Puneet Kundal. [Applause.] You are most heartily welcomed to this House.

 

Question put: That the Reports be adopted.

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

Report on Protocol amending the Agreement between the Government of the Republic of South Africa and the Republic of Turkey for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income with explanatory memorandum  accordingly adopted in accordance with section 65 of the Constitution.

 

Report on Agreement between the Government of the Republic of South Africa and the Government of the Kingdom of Swaziland on Mutual Assistance and Co-operation and the Prevention of Fiscal Evasion with Respect to Value-Added Tax with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report on Agreement between the Government of the Republic of South Africa and the Government of the Principality of Monaco for the Exchange of Information Relating to Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report on Agreement between the Government of the Republic of South Africa and the Government of the Principality of Liechtenstein for the Exchange of Information Relating to Tax Matters with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

Report on Agreement between the Kingdom of Lesotho on Mutual Assistance and Co-operation and the Prevention of Fiscal Evasion with Respect to Value-Added Tax with explanatory memorandum is accordingly adopted in accordance with section 65 of the Constitution.

 

Report on Protocol amending the Agreement between the Government of the Republic of South Africa and the Government of the Republic of India for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income with explanatory memorandum accordingly adopted in accordance with section 65 of the Constitution.

 

The Council adjourned at 11:11.

 

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