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2015-07-07

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Reply received June 2015

QUESTION NUMBER: 1911 [NW2132E]

DATE OF PUBLICATION: 22 MAY 2015

1911. Ms A Steyn (DA) to ask the Minister of Finance:

(a) Who are the current chief financial officers of (i) the National Treasury and (ii) the entities reporting to it and (b) what is the qualification of each chief financial officer?

NW2132E

REPLY:

NAME OF ENTITY	(a) (i) NAME OF CHIEF FINANCIAL OFFICER?	(b) QUALIFICATION OF CHIEF FINANCIAL OFFICER?
National Treasury	Mr Daluhlanga Majeke	Masters of Business Leadership Bachelor of Commerce Baccalaureus Artium
Accounting Standards Board	MS Erna Swart	CA(SA) M.Com (cum laude)
Co-operative Banks Development Agency	None	None
Development Bank of Southern Africa	Mrs. Kameshni Naidoo	Charted Accountant (SA) Advance Certificate in Auditing Certificate in the Theory of Accounting Science (CTA) BCom Hons (Accounting)
Financial Intelligence Centre	Veronica Marsh Smit	BCom (Hons) CA(SA) Treas.Dep
Financial Services Board	Roy Harichunder	B.Com. CA (SA)
Government Employees Pension Fund	None	None
Government Pensions Administrative Agency	Mr. Thomas Matjeni (Acting CFO) Seconded from National Treasury	BCom Accounting and BCom Honours Degree
Independent Regulatory Board for Auditors	Willemina de Jager	CA (SA) ACMA
Pension Funds Adjudicator	Richard Segers	Registered Charted Accountant of South Africa CA(SA)
Land Bank	Mr. Lebogang Serithi	BCom (Financial Accounting) BCom (Accounting Science). Honours / CTA Masters of Commerce (Financial Management) Chartered Accountant (SA)
Office of the Ombud for Financial Services Providers	Jean Goodey	CA(SA)
Public Investment Corporation	Ms Matshepo More	CA (SA) Certificate in Theory of Accounting Bachelor of Business Science (Finance)
South African Airways	Wolf Meyer	BPL, BCompt (Hons), CA(SA)
South African Revenue Services	Matsobane Peter Matlwa	Bachelor of Commerce Bachelor of Commerce (Hons) Master of Business Administration Master of Commerce; South African and International Income Tax Chartered Accountant (SA)
Sasria	Karen Pepler	Chartered Accountant (SA) B Com (Accounting) B Compt. (Honours) – Financial Accounting Certificate in the Theory of Accounting
Tax Ombud	None	None

Reply received June 2015

QUESTION 1808 FOR WRITTEN REPLY

DATE OF PUBLICATION: 22 MAY 2015

1808. Dr M J Figg (DA) to ask the Minister of Finance:

Whether, with reference to the National Treasury’s decision to implement an Integrated Financial Management System (IFMS), the implementation of the IFMS has commenced; if not, why not; if so, what (a) progress has been made and (b) is the current status of the IFMS?

NW2027E

REPLY:

The IFMS team, led by the Office of the Accountant-General, has worked intensively and achieved several successes, which include:

Several appointments have been made in the Chief Directorate: IFMS, with the most recent being the Chief Director: IFMS. These officials bring capacity and the necessary skills to accelerate implementation of the new solution;
A panel consisting of service providers was established within a few months of Cabinet’s endorsement (November 2013) and appointments for several work streams have been made;
A Programme Management Office (PMO) has been established for purposes of strengthening governance, implementing structures and controls as required by project governance frameworks;
Mapping of processes for the new solution utilising key existing products as a departure point are now advanced and change-management activities which are being executed and forward-planned;
Negotiations to terminate contracts with service providers, who were part of the previous project iteration, are at an advanced stage with majority having in-principle agreements;
A communications strategy is being put in place for broader communication on the progress of the project as well as to provide previews of upcoming events and milestones;
The team also continues to engage directly with a broad spectrum of stakeholders. The extent and frequency of engagements will further intensify as the project gains momentum over the next several months; and

The team is presently preparing to conduct readiness assessments at departments, to ensure that their IT infrastructure and platforms are synchronised with the IFMS rollout plan.

Reply received June 2015

QUESTION NUMBER 1780 [NW1999E]

DATE OF PUBLICATION: 15 May 2015

1780. Mr A R McLoughlin (DA) to ask the Minister of Finance:

(1) (a) Which persons are served by the VIP Unit of the SA Revenue Services (SARS), (b) how many of SARS’s personnel are deployed to this unit, (c) how many offices are operated by this unit and (d) where are these offices located;

(2) what was the total annual cost for the operation of this unit in the (a) 2011-12, (b) 2012-13, (c) 2013-14 and (d) 2014-15 financial years, including but not necessarily limited to (i) salary packages of staff members, (ii) rental of premises, (iii)(aa) purchase or (bb) hire of furniture and equipment, (iv) stationery costs, (v) telecommunication charges, (vi) cleaning services, (vii) transport and (viii) training provided to staff members? NW1999E

REPLY:

1(a) The unit referred to as the VIP Unit is called the Restricted Taxpayer Unit (RTU) and provides an end to end service (meaning all functions relating to tax compliance with SARS) to the following taxpayers:

Current and Ex-Presidents,
Current and Ex-Deputy Presidents,
Ministers and Deputy Ministers,
Members of the National Assembly,
Members of the National Council of Provinces,
Premiers of Provincial Government,
Members of Executive Council of Provincial Parliaments,
Members of Provincial Parliaments,
Directors General and Commissioners of National Bodies,
Directors General in the Premiers’ offices of Provincial Government,
Traditional Leaders,
Ambassadors and United Nations Officials paid in terms of Article VI 19(b) of the UN Convention,
Heads of Departments/Public Sector Institutions,
Judges of Constitutional Court, Supreme Court of Appeal and High Court,
Executive Mayors,
Mayors,
Councillors of Metropolitan Municipalities,
Leadership of registered trade unions, including the Presidents, General Secretaries, Deputy Secretaries, and Spokespersons,
SARS Employees of grade 5 and above,
Political parties represented in the national and provincial parliaments, and their associated entities, and
Other influential, high risk or high profile taxpayers

(b) There are currently 27 employees in the RTU.

(d) Offices are located in:

Cape Town, situated at 90 Plein Street in the Parliament Building, and
Pretoria, situated at Le Hae La SARS- Head Office, 299 Bronkhorst Street, Nieuw Muckleneuk.

2. The RTU Operational costs are:

	RTU Operational Cost
Financial Years	(a) 2011/2012	(b) 2012/2013	(c) 2013/2014	(d) 2014/2015
Personnel Expenditure	R 7, 096, 205	R 4, 962, 965	R 3, 383, 875	R 7, 788, 556
Rental of premises	R 0	R 0	R 0	R 0
(iii)(aa) Purchased furniture and Equipment	R 86, 861	R 65, 883	R 227, 991	R 167, 477
(iii)(bb) Hired furniture and Equipment	R 0	R 0	R 0	R 0
Stationery Costs	R 57, 705	R 25, 351	R 26, 379	R 52, 474
Telecommunication Cost	R 103, 684	R 70, 988	R 33, 320	R 61, 223
Cleaning Services	R 22, 980	R 37, 749	R 41, 644	R 81, 146
Transport/ Travel provided to Staff	R 424, 867	R 165, 673	R 223, 440	R 230, 454
(viii) Training provided to Staff	R 0	R 0	R 0	R 0
Other Expenditure	R 128, 757	R 175, 019	R 156, 610	R 162, 780
Total	R 7, 921, 059	R 5, 503, 628	R 4, 093, 259	R 8, 544, 110

It should be noted, relating to the above expenditure, that:

In 2011/12 the RTU expenditure was not managed on a separate Budget and thus the expenditure reflected above includes operational cost not limited to the unit. The split of operating cost and the re-organisation of the RTU commenced during the 2012/2013 financial year, and continued in the 2013/2014 financial year. The reason for the increase in expenditure in the 2014/15 financial year was the increase in the taxpayer base of the unit, thus resulting in an increase in staff numbers, which increased personnel and related costs.
No rental of premises expenditure was allocated to the RTU
Purchased Furniture and Equipment falls under Capital Expenditure
Telecommunication Cost includes (Telephone Cost, Cell phone Cost and Data Communication)
Transport/ Travel Cost includes (Air Travel, Subsistence Cost and Car Hire)
All training requirements were catered for internally through the SARS Academy

Reply received June 2015

QUESTION 1775 FOR WRITTEN REPLY

DATE OF PUBLICATION: 15 May 2015

1775. Dr M J Figg (DA) to ask the Minister of Finance:

With reference to his Budget speech in which he stated that non-strategic government assets will be disposed of, (a) what is the total value of the non-strategic government assets available for disposal and (b) what do they consist of?

NW1993E

REPLY:

and (b) During October 2014, the National Treasury held a market sounding where financial institutions and primarily banks were invited to present their ideas around strategies for funding the allocation to Eskom through the sale of non-strategic government assets. A wide range of assets were identified which included the sale of listed shareholdings held directly by government, the sale of listed stakes held indirectly by government mainly through Development Finance Institutions (DFIs), the sale of government’s unlisted shareholdings in state owned companies (SOCs) or their subsidiaries, the ring-fencing and sale of assets held by SOCs and the sale of other assets, such as property owned by the state. The total value of assets identified exceeded R250 billion. The National Treasury reviewed all the proposals to determine the most viable option for disposing of R23 billion of non-strategic assets to fund the allocation to Eskom.

Reply received: June 2015

QUESTION NO. 1752

DATE OF PUBLICATION: Friday, 15 May 2015

INTERNAL QUESTION PAPER 14 OF 2015

1752. Mr. M H Hoosen (DA) to ask the Minister of Home Affairs:

(1) What company is contracted to provide security services to the department’s offices and branches in each province;

(2) How much money did the department spend in contracts for security services in the (a) 2013-14 and (b) 2014-15 financial years;

(3) What is the (a) scope and (b) nature of employment that security guards contracted to provide services to the department’s offices and branches in each of the country’s provinces, particularly relating to individuals visiting these premises?

NW1970E

REPLY:

(1) There are currently three companies appointed to provide physical security guarding duties in all offices of the department across the country and they are as follows:

Company	Province	Appointment date	Duration
Eastern Guard security	Kwazulu-Natal and Western Cape	01 May 2014	36 months
Tlhomphanang Security	Mpumalanga and Eastern Cape	01 November 2014	30 months
Khuselani Risk management	Gauteng, Free State, Limpopo, Northern Cape and North West	01 November 2014	30 months

(2) The total budget spend for the two financial years of 2013/14 and 2014/15 is as follows:

2013/14: R 81 602 629.28

(b) 2014/15: R89 930 763.15

(3)(a) The scope of this assignment is limited to the provision of physical security services at different offices.

(3)(b) All security guards employed in this regard are required to provide only physical security related tasks such as access control, perimeter patrols, searches and monitoring any other matter that borders on possible security breach. They are not expected to perform any departmental function or provide any information on departmental queries as this is out of scope in terms of their contractual obligations.

Reply received June 2015

QUESTION FOR WRITTEN REPLY

QUESTION NO. 1751

DATE OF PUBLICATION: Friday, 15 May 2015

INTERNAL QUESTION PAPER 14 OF 2015

1751. Ms S P Kopane (DA) to ask the Minister of Home Affairs:

(1) How many complaints about staff conduct have been received at his department’s office in Edenvale, Gauteng, since 1 January 2015;

(2) what is the progress of the complaint lodged by a certain person (name and details furnished) at his department’s office in Edenvale, Gauteng;

(3) are the actions of the security guards contracted to provide security services to this particular branch also named in the investigation of the specified complaint;

(4) what disciplinary measures are in place to deal with incidents where department employees and officials do not act in a professional and courteous manner towards individuals coming into their offices? NW1969E

REPLY:

(1) No formal complaints about the conduct or attitude of officials were brought to the attention of management except the alleged case of assault on one of the clients on 2 May 2015.

(2) The incident was brought to the attention of the Management on 4 May 2015 and the client was requested to lodge a formal complaint to allow the department to investigate. The client refused and indicated that she will lay formal charges with South African Police Services (SAPS). A criminal case (CAS79/5/2015) was opened by the client and the investigation is underway.

Despite the unavailability of a formal complaint from the client, an internal investigation was conducted to confirm and verify allegations made by the client. From the information gathered there is no proof that the client was manhandled or assaulted by the official. The office has however dealt with the lessons learnt from the incident and discussed on how best to handle and manage such a situation to avoid forceful intrusion of clients and also to continue building positive client relations and improving client satisfaction.

(3) The office is not in possession of the client statement implicating the security guards. However, the security guard was requested to submit his statement pertaining to what transpired on the day.

(4) Offices display names and contact details of Office Managers and District Managers: Operations to enable clients to report matters of misconduct. Officials of Home Affairs are wearing nametags at all times to enable clients to identify officials when reporting.

The department has a code of conduct that talks to the acceptable behavior and conduct of officials. There is an Employee Engagement Chief Directorate that is responsible to manage discipline in the department and to charge deviant employees with misconduct. The management of conduct and discipline is governed in terms of the disciplinary code and procedures for the Public Service as provided for in PSCBC Resolution 1 of 2003.

The Executive Authority delegated the function of managing appeals on disciplinary matters to the Deputy Director-General: Human Resources (DDG:HR) in the Department. The DDG:HR adjudicates appeals of officials found guilty of misconduct. Dispute resolution processes are applied to deal with cases referred to PSCBC for conciliation and arbitration in terms of schedule 8 of Labour Relations Act No 66 of 1995. The Legal Services Chief Directorate (in collaboration with the office of the State Attorney) deals with cases of misconduct referred to the Labour Court.

Reply received: May 2015

QUESTION NUMBER: 1733 [N1951E]

DATE OF PUBLICATION: 15 MAY 2015

1733. Mr B M Bhanga (DA) to ask the Minister of Finance:

(1) What is the National Treasury’s total budget allocated for assisting metropolitan municipalities that experience financial distress in the (a) 2014-15 and (b) 2015-16 financial years;

(2) what is the National Treasury’s contingency plan to assist Gauteng municipalities and metros in financial distress?

NW1951E

REPLY:

The National Treasury does not provide financial assistance to metropolitan municipalities experiencing financial distress; therefore there is no budget allocation. However, the National Treasury provides technical assistance on financial management related matters to enable metros to improve their financial position. The assistance includes amongst others, reviewing the adopted budget to ensure that it is realistic, credible and funded. Furthermore, the municipalities are assisted with the development of a financial recovery plan to improve the cash flow of the municipality. In addition, the National Treasury through the City Support Programme assists linking cities to the broader intergovernmental system with the aim of improving the way cities function in order to create more inclusive, productive and sustainable cities.

The National Treasury provides technical assistance on financial management related matters to Gauteng municipalities and metros in financial distress. The assistance includes proper financial management through ensuring that adopted budgets are realistic, credible and funded. Furthermore, municipalities are assisted with cash flow management to ensure that they are able to prioritise their obligations. The process for delegated municipalities includes establishment of a task team between the National Treasury, Gauteng Provincial Treasury and Gauteng CoGTA which will assist in developing a financial recovery plan. The plan is closely monitored by the Gauteng Provincial Treasury to ensure proper implementation.

QUESTION 1715 FOR WRITTEN REPLY

DATE OF PUBLICATION: 15 May 2015

Mr M G P Lekota (Cope) to ask the Minister of Finance:

With reference to the former Minister of Finance’s reply to question 90 on 18 March 2014, and in light of excessive expenditure by public representatives of taxpayers money (details furnished), what action does the Government intend taking with regard to such excessive expenditure on (a) cars, (b) travel, (c) catering, (d) entertainment and (e) upgrades to offices and houses in all spheres of government? NW1933E

REPLY:

The annual Appropriation Act allocates financial resources to national departments. In terms of section 36(2)(a) of the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999), the head of department (Director-General) is the accounting officer and, in terms of 38(1)(b) of the Act, he or she is required to ensure the effective, efficient, economical and transparent use of his or her department’s resources. Sections 6(2)(b) and 6(2)(c) of the PFMA empowers the National Treasury to enforce this Act in national departments and also requires the National Treasury to monitor and assess implementation of the Act in departments, constitutional institutions and public entities.

Government acknowledges that the current economic situation in the country requires public sector institutions to spend prudently. To this end, the National Treasury issued a Treasury Instruction on Cost Containment Measures in December 2013 which was aimed at achieving greater efficiency in expenditure, reduced waste and improved spending in the areas of, amongst others, travel and subsistence, catering and entertainment. This Treasury Instruction took effect from 1 January 2014 and introduced the following restrictions:

Cars

Employees of PFMA compliant institutions, when travelling on official engagements, may only hire vehicles which are classified as a Group B or an equivalent class. A higher group of vehicle may only be hired with the approval of the accounting officer of a department or constitutional institution or the accounting authority of a public entity. Such approval may be granted if the employee is travelling on a particular terrain that requires a certain type of vehicle or to cater for the special needs of employees.

Travel

Accounting officers of departments and constitutional institutions and accounting authorities of public entities may only purchase economy class tickets for its employees where the flying time is for five (5) hours or less. The purchase of business class tickets for flights that are less than five (5) hours may be purchased for persons holding the ranks/positions of Directors-General or an equivalent rank (in departments), persons appointed on grounds of policy considerations in terms of section 12A of the Public Service Act, 1994 (i.e. advisors to executive authorities), accounting authorities of public entities and chief executive officers of constitutional institutions.

For flights exceeding five (5) hours, business class tickets may also be purchased for persons holding the ranks/positions of Director-General, Deputy Directors-General or equivalent ranks
(in departments), advisors to executive authorities, accounting officers of constitutional institutions, accounting authorities of public entities and employees at the level of management that report directly to the accounting officer of a constitutional institution or accounting authority of a public entity. The Treasury Instruction does, however, make provision for the accounting officer or accounting authority to purchase business class tickets for employees with disabilities or for those with special needs.

Accounting officers and accounting authorities are prohibited from purchasing air tickets for first class travel.

Catering

PFMA compliant institutions are only permitted to incur catering expenses for external meetings, i.e. where the meeting is attended by delegates from outside institution. The Treasury Instruction specifically prohibits catering expenses being incurred for internal meetings.

Entertainment

PFMA compliant institutions are precluded from granting entertainment allowances for qualifying employees that exceed two thousand rand (R2000) per person, per financial year.

Upgrades to offices and houses in all spheres of government

Although no specific clause exists regarding cost containment in the areas of upgrades to offices and houses, the Treasury Instruction on Cost Containment requires accounting officers and accounting authorities to ensure that appropriate expenditure control measures are instituted to provide reasonable assurance to ensure that all expenditure in their respective institutions are, amongst others, necessary and appropriate.

Reply received June 2015

QUESTION FOR WRITTEN REPLY

QUESTION NO. 1709

DATE OF PUBLICATION: Friday, 15 May 2015

INTERNAL QUESTION PAPER 14 OF 2015

1709. Ms C N Majeke (UDM) to ask the Minister of Home Affairs:

(1) Whether, with regard to the issuing of death certificates which has been refused by his department (details furnished), in particular in the Mhlontlo Local Municipality which is an administrative area in the OR Tambo District Municipality, Eastern Cape, his department has put regulations in place to direct the generation and issuing of death certificates in particular in rural areas;

(2) Whether the role of burial undertakers with regard to the issuing of death certificates is a regulated arrangement; if so,

(3) Whether such arrangement has been made known to all the offices of his department across the country; if not, why not; if so, what are the relevant details?

REPLY:

A Death Report (Form DHA -1680) is completed for deaths occurring in rural areas issued by the Chief or Induna of the area and the death is registered at the nearest Home Affairs office. The Department does not refuse any death registrations that are in compliance with the Act and Regulations.

(2) Yes. Only designated funeral undertakers are permitted to register the death with written consent from the family and upon registration of the death, a death certificate is issued by the Department of Home Affairs.

(3) Yes. Designation of funeral undertakers are appointed by the Department of Home Affairs Office within the jurisdiction of that area across the country.

QUESTION 1664 FOR WRITTEN REPLY

DATE OF PUBLICATION: 8 MAY 2015

1664. Mr H C C Krüger (DA) to ask the Minister of Finance:

(1) What is the total investment made by the Jobs Fund to date in the Riversands Incubation Hub near Diepsloot in Johannesburg, which is a partnership between the Jobs Fund and Century Property Investments;

(2) what additional funding has the Jobs Fund budgeted for the project;

(3) what is the anticipated cost for each job created;

(4) how does the cost for jobs created compare with other projects funded by the Jobs Fund?

NW1881E

REPLY :

The total investment made by the Jobs Fund to date in the Riversands Incubation Hub near Diepsloot amounts to R383.47 million. The total amount approved for allocation to the project by the Jobs Fund is R405.97 million, and the matching contribution from Century Property Development amounts to R520.32 million. The total cost of the Riversands Hub project amounts to R926.29 million, comprising a hub facility investment of R855 million (92.3% of the total project budget), and R71.29 million in training, operations and management expenditure. The Hub is located within a commercial park of approximately 3 million m2, with an overall development cost of R12 billion.
The balance of funding still available from the Jobs Fund for the Riversands Incubation Hub project is R22.5 million.
The Riversands Incubation Hub is expected to create 1372 new permanent jobs over the period 2013 to 2018, at a Jobs Fund cost per job of R295 000. This excludes temporary employment opportunities during construction and indirect job creation impacts. The location of the facility in a commercial park is intended to provide market linkage for SMMEs through partnerships with established enterprises and benefits associated with the growth in trade and business activity. The Incubation Hub will remain a centre of support for existing and newly-created SMMEs and informal enterprises beyond the time-frame of the Jobs Fund, and so its longer term employment impact is larger than this estimate.

The average Jobs Fund grant cost per permanent job commitment to date is R52 000. However, the cost per job in infrastructure projects such as the Riverside incubation Hub is typically considerably higher than this, partly because these projects have extended impacts on employment creation beyond the contracted employment commitments during the time-frame of the Fund.

Reply received June 2015

QUESTION 1652 FOR WRITTEN REPLY

DATE OF PUBLICATION: 8 MAY 2015

1652. Mr C D Matsepe (DA) to ask the Minister of Finance:

What is his position with reference to the Minister of Social Development’s reply to question 112 on 28 February 2015 that the awarding of the contract to Nexia SAB&T was in line with procurement processes in light of the provisions of the Public Finance Management Act, Act 1 of 1999 and the National Treasury regulations?

NW1869E

REPLY:

The responsibility to approve deviation from competitive bidding resides with the Accounting officer / authority in terms of Treasury Regulations16A6.4. Should it be impractical to invite competitive bids for specific procurement, e.g. in urgent or emergency cases or in case of a sole supplier, the accounting officer / authority may procure the required goods or services by other means, such as price quotations or negotiations in accordance with Treasury Regulation 16A6.4. The reasons for deviating from inviting competitive bids should be recorded and approved by the accounting officer / authority or his / her delegate. Accounting officers / authorities are required to report within ten (10) working days to the relevant treasury and the Auditor-General all cases where goods and services above the value of R1 million (VAT inclusive) were procured in terms of Treasury Regulation 16A6.4. The report must include the description of the goods or services, the name/s of the supplier/s, the amount/s involved and the reasons for dispensing with the prescribed competitive bidding process

The deviation referred above was reported to the National Treasury. The auditing of such deviations is done by the Auditor-General. The outcome of such auditing is reflected in the management letter of the relevant institution and the annual financial statements if the expenditure is regarded as irregular or fruitless and wasteful.

Reply received June 2015

QUESTION 1651 FOR WRITTEN REPLY

DATE OF PUBLICATION: 8 MAY 2015

1651. Mr C D Matsepe (DA) to ask the Minister of Finance:

What is his position with reference to the provisions of the Public Finance Management Act, Act 1 of 1999 and the National Treasury regulations in respect of the Minister of Social Development’s reply to question 290 on 28 April 2015 with regard to an additional payment that was made to Cash Paymaster Services which does not require reporting to the National Treasury? NW1868E

REPLY:

The National Treasury Instruction Note in respect of enhancing compliance monitoring and improving transparency and accountability in Supply Chain Management issued on 31 May 2011, determines in par 3.9.3 that contracts may be expanded or varied by not more than 20% or R20 million (including all applicable taxes) for construction related goods, works and/or services and 15% or R15 million (including all applicable taxes) for all other goods and/or services of the original value of the contract, whichever is the lower amount. Par 3.9.5 determines that the contents of paragraph 3.9.3 are not applicable to transversal term contracts facilitated by the relevant treasuries and specific term contracts as in such contracts, orders are placed as and when commodities are required and that at the time of awarding the contract, required quantities are not known. In such instances, the accounting authority need not obtain approval from the relevant treasury.

The SA Social Security Agency (SASSA) was unable to accurately determine the exact number of beneficiaries to be re-registered at the time of the award of the contract. Due to the additional beneficiaries involved in the re-registration process, SASSA incurred a further amount of R316 447 361.41 (including VAT). If the cost of the re-registration of additional beneficiaries was charged at the tariff stipulated at the award of the contract, the additional quantities will not be regarded as a deviation. Should the tariff for the re-registration of additional beneficiaries have increased, the transaction would represent a deviation and require to be reported to National Treasury. SASSA’s accounting authority did not regard the additional cost as a deviation and did not report the matter to National Treasury. National Treasury has not reviewed the transaction.

The Auditor-General will in terms of the Public Audit Act perform an annual regularity audit on the accounts of SASSA. During the audit, verification of the transaction will be performed and reported on if applicable.

2015-07-07

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