ATC171121: Report of the Standing Committee on Finance on the Special Report of the Public Protector on the implementation of remedial action contained in Public Protector Report No. 18 of 2011-12, on Maladministration during the privatization of the Venda Pension Fund: Report No. 15 of 2016-17, dated 21 November 2017

Finance Standing Committee

Report of the Standing Committee on Finance on the Special Report of the Public Protector on the implementation of remedial action contained in Public Protector Report No. 18 of 2011-12, on Maladministration during the privatization of the Venda Pension Fund: Report No. 15 of 2016-17, dated 21 November 2017
 

  1. The Special Report of the Public Protector on the implementation of remedial action contained in Public Protector Report No. 18 of 2011-12, on Maladministration during the privatization of the Venda Pension Fund: Report No. 15 of 2016-17 (Special Report)[1] in the National Assembly was referred to the Standing Committee on Finance for consideration and report on 23 January 2017.

 

  1. The Special Report confirms the findings in the Public Protector Report No 18 of 2011/12, issued in 2011 and seeks intervention by the National Assembly in expediting the remedial action as contained in the 2011/12 Report. The Public Protector found in the 2011/12 Report that:
  1. Government mishandled the privatisation of the Vhembe Pension Fund in a manner that constituted maladministration; and
  2. the complainants were prejudiced by the maladministration.

 

  1. Concerns about the narrative and implementation of the 2011/12 Report led to the establishment of a Task Team consisting of officials from the Office of the Public Protector, Department of Public Service and Administration, National Treasury and Government Pension Administration Agency (GPAA).

 

  1. The Task Team is addressing the issues referred to above, in terms of the Special Report; namely –
  1. Paucity of records;
  2. Verifying information relating to posts;
  3. Departments where the complainants were employed;
  4. Employment dates;
  5. Remuneration; and
  6. Closed list of complainants to prevent a floodgate of claims.

 

  1. The Special Report highlights the reasons for the Government to address the injustice set out in the 2011/12 Report and recommends a process based on a closed list of complainants and official records to establish a reliable database of beneficiaries of the remedial action of the Public Protector. The Special Report further recommends the commitment of funds by National Treasury to facilitate the recalculation of pension benefits and that Parliament oversees the implementation of the remedial action in terms of section 182(1)(c), read with sections 43(2) and 55(2) of the Constitution.

 

  1. To facilitate monitoring of the implementation of the recommendations in the Special Report, the Public Protector directed the Director General: Finance to submit an action plan on the remedial action contained in the 2011/12 Report within six weeks of the date of the Special Report to the Public Protector and the Speaker of the National Assembly.[2]

 

  1. The Public Protector directed the Speaker of the National Assembly to report to the Public Protector on the steps taken to constitute an appropriate mechanism to oversee the implementation of the 2011/12 Report, within 14 days from the date of receipt of the action plan.

 

  1. On Friday, 1 September 2017, the reply from the Minister of Finance to the recommendations in the Special Report was tabled and referred to the Standing Committee on Finance for consideration, and to the Portfolio Committee on Justice and Correctional Services. The letter, dated 26 August 2017, sets out a time bound action plan starting from 1 June 2017 until November 2017. 

 

  1. On 4 October 2017 the Standing Committee on Finance received a preliminary briefing on the Special Report and the letter from the Minister. The Committee agreed to consider a statement on the matter during its next meeting, 10 October 2017.

 

  1. On 10 October 2017 the Committee received a briefing from the Budget Office in National Treasury.

 

  1. The Standing Committee on Finance shares the views and concerns of the Public Protector expressed in the Special Report of the Public Protector on the implementation of remedial action contained in Public Protector Report No. 18 of 2011-12, on Maladministration during the privatization of the Venda Pension Fund: Report No. 15 of 2016-17. It is unacceptable that the claimants in this matter had to wait almost 20 years without a resolution of their plight and further delays will not be tolerated. The recommendations in the reports of the Public Protector on this matter must be given effect to as a matter of urgency. The Committee will exercise oversight of the implementation of the recommendations and ensure that necessary relief to restore the dignity and ensure the fulfilment of the right to social security of the Concerned Vhembe Pension Fund Group. The implementation plan submitted by the Minister of Finance sets clear timeframes for the implementation of the recommendations of the Public Protector and the Committee will hold the Minister and the Department to account in this regard.

 

  1. The Standing Committee on Finance recommends that the Minister of Finance reports to the National Assembly on the outcomes of the action plan by 15 December 2017.

 

Report to be considered

 

 

 

 


[1] Submitted in terms of section 182(1)(b) of the Constitution of the Republic of South Africa, 1996 and section 8(2)(b)(iii) of the Public Protector Act, 1994 (See ATC, 23 January 2017).

[2] Before 23 January 2017.

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