ATC200717: Report of the Portfolio Committee on Justice and Correctional Services on Vote No. 25 – Justice And Constitutional Development For 2020/21, as Contained in the Adjustments Appropriation Bill [B10-2020], Dated 17 July 2020

Justice and Correctional Services

REPORT OF THE PORTFOLIO COMMITTEE ON JUSTICE AND CORRECTIONAL SERVICES ON VOTE NO. 25 – JUSTICE AND CONSTITUTIONAL DEVELOPMENT FOR 2020/21, AS CONTAINED IN THE ADJUSTMENTS APPROPRIATION BILL [B10-2020], DATED 17 JULY 2020

 

1. INTRODUCTION

 

1. On 24 June 2020, the Minister of Finance tabled a special Adjustments Budget intended to report on the COVID-19 fiscal measures and the resulting proposed adjustments to the division of revenue and departmental allocations; and set out government’s commitment to stabilise/strengthen public finances and promote economic reform towards faster and more inclusive growth.

 

1. An adjustments budget provides for significant and unforeseeable economic and financial events, expenditure recommended by a Cabinet committee or expenditure in emergency situations. It also provides for the shifting of funds between and within votes. Within limits, virements provide accounting officers with a budget management tool so that reductions under one programme of a department’s budget can be used to offset excess spending in another programme in that department, subject to certain conditions, including that no virement can exceed 8% of the appropriated amount in a particular programme; amounts appropriated for capital expenditure cannot be used to supplement spending under current payments; and amounts that are specifically appropriated for a particular purpose (“ringfenced”) cannot be moved, unless approved either by legislation or by Treasury.

 

1. The Committee was briefed virtually on the adjustments to Vote No. 25 – Justice and Constitutional Development for 2020/21, as contained in the Adjustments Appropriation Bill [B10-2020], on 8 July 2020.

 

1. THE IMPLICATIONS OF THE COVID-19 PANDEMIC FOR THE DEPARTMENT

 

1. The COVID-19 pandemic continues to affect the delivery of justice services. Although the courts have remained open throughout the lockdown period, the categories of permitted services are restricted. At the start of the lockdown period, only services relating to the essential functioning of the courts were permitted and, as a result, most matters were postponed.From 4 May 2020, the Directions relating to the Courts adopted a phased return to full functionality as the restrictions ease.

 

1. Furthermore, services are interrupted whenever a case of Covid-19 is reported, as the affected courts and offices must be closed for decontamination. The Department, however, has adopted a Risk-Adjusted Plan so that interruptions are resolved within the shortest time possible, with minimum impact of service delivery and that the associated costs are reasonable.

 

1. Nonetheless, the restricted functioning of the courts has resulted in a significant increase in backlog cases, especially in District and Regional Magistrates Courts. The data shows also that the Western Cape, Eastern Cape, Gauteng and Kwa-Zulu Natal are most affected. The Department has taken the lead in initiating the development of a Criminal Case Backlog Plan with the participation of stakeholders. Most courts have developed priority rolls and other measures, such as the extension of the number of court hours, are being considered.

 

1. The National Prosecuting Authority (NPA) is an essential service and, therefore, has continued to operate, although scaled down, during the lockdown period. The NPA has observed an upward trend in the number of accused arrested, in particular, for:

• Contravening the COVID-19 Regulations: Apart from the failure to confine to residence, an increase was noted in the contravention of regulation 11B(1)(e), namely the failure to close a place or premise to all persons whilst the place/premise was not involved in the provision of essential goods (non-essential goods, such as alcohol, were mostly sold or consumed at these premises).
• Committing economic crimes, such as theft, robbery, fraud, housebreaking etc.
• Committing violent offences (robbery aggravating, murder, culpable homicide, public violence, illegal possession of explosives, assault GBH, contravention of protection order).

 

1. The increase in violent crime, in particular, explains the relatively high number of accused in custody. Other reasons for detaining accused relate to outstanding warrants on other pending cases, previous Schedule 1 convictions, etc.

 

1. Despite the COVID-19 pandemic, the Department reports that its priorities remain:

• Ensuring business continuity. Courts, Master’s offices, and the offices of the State Attorney must remain open.
• Improving governance and accountability. In this regard, the filling of 49 critical Senior Management positions and the review of the Departmental structure are to continue as planned.
• Combatting corruption: Investigations of corruption must continue, as must the State Capture Commission and the Special Tribunal.
• Accelerating ICT modernization and digitization: Although these were a priority before Covid-19, the pandemic has provided impetus to ICT modernization and the digitisation of justice services. Notably, funds for the Integrated Criminal Justice Strategy and Integrated Justice System budgets have not been cut, which will assist the Department to proceed with its plans.

 

1. OVERVIEW OF REVISED BUDGET ALLOCATION FOR 2020 MTEF

 

1. The Main Appropriation for 2020/21 allocates R22.4 billion to the Justice and Constitutional Development Vote (Vote 25). This includes a Direct Charge for Magistrates’ salaries. The Adjustments Appropriation Bill [B10-2020], however, proposes that the allocation be revised downwards by -R416 million, from R22.4 billion to R21.9 billion, as follows:

 

 

 

Table 1: Proposed adjustments 2020/21

*Note There are no funds reallocated to the Vote

** C-19 refers to virements for COVID-19 purposes

R’000     Programme	2020/21 Main budget	Downward revisions			Reallocations		2020/21
		Suspens-ion of funds	Vire-ments from (C-19)	Vire-ments from (Other)	Vire-ments to (C-19)	Vire-ments to (Other)	Total net change	Total allocation
Administration	2 356 456	-	-61 917	-	107 895	150 000	195 978	2552 434
Court Services	7 180 283	-198 000	-196 170	-150 000	196 170	-	-348 000	6832 283
State Legal Services	1 431 927	-35 000	-15 528	-	-	-	-50 528	1381 399
NPA	4 583 924	-150 000	-30 450	-	-	-	-180 450	4403 474
Auxiliary and Associated Services	4 308 031	-33 000	-30 000	-	30 000	-	-33 000	4 275 031
Direct Charge	2 550 227	-	-	-	-	-	-	2550 227
Total	22 410 848	-416 000	-334 065	-150 000	334 065	150 000	-416 000	4275 031
Economic classification
Current payments	18 096 476	-261 000	-	-17 000	264 065	149 000	-98 560	17997 916
Compensation of employees	12 937 295	-261 000	-	-17 000	-	17 000	-261 000	12676 295
Goods and Services	5 159 181	-	-233 625		264 065	132 000	162 440	5321 621
Transfers and subsidies	3 250 214	-33 000	-	--	-	-	-33 000	3217 214
Provinces and municipalities	825	-	-	-	-	-	-	825
Departments  accounts and agencies	3 107 177	-33 00	--	--	--	-	-33 000	3074 177
Foreign governments and international organisations	18 859	-	-	-	-	-	-	18 859
Households	123 353	-	-	-	-	-	-	123 353
Payments for capital assets	1 064 158	-122 000	-100 440	-133 000	70 000	1 000	-284 440	779 718
Building and other fixed assets	874 435	-122 000	-100 440	-133 000	-	-	-355 440	518 995
Machinery and equipment	189 723	-	-	-	70 000	1 000	71 000	260 723
Payments for financial assets		-	-	-	-	-	-
Total	22 410 848	-416 000	-334 065	-150 000	– 334 065	150 000	-416 000	21994 848

 

 

 

 

 

 

Table2: Explanations of budget adjustments

R’000	Downward revisions	Reallocations	2020/21 Total net change
Compensation of employees: Appointment of additional personnel suspended	-278 000	17 000	-261 000
Legal Aid South Africa, Special Investigating Unit and Justice Modernisation: Suspended capacitation and procurement of audio-visual system	-33 000	-	-33 000
Goods and services: Funds reprioritised mainly to procure personal protective equipment and temperature-scanning devices, as well as deep-clean courts and other justice service points	-233 625	396 065	162 440
Capital Works Programme: Suspended commencement and completion of courts infrastructural projects	355 440	71 000	-284 440
Total	-900 065	484 065	-416 000

 

1. Suspension of funds for Covid 19 purposes

 

1. The proposed suspension of –R416 million from the Vote for COVID-19 purposes affects all programmes, with the exception of Administration, as follows:

• A total of –R198 million is to be suspended from Court Services.
• A total of -R35 million is to be suspended from State Legal Services.
• A total of -R150 million is to be suspended from theNational Prosecuting Authority.
• A total of –R33 million is to be suspended from Auxiliary and Associated Services as follows: Legal Aid South Africa (-R23 million) and the Special Investigating Unit (-R10 million).

 

1. In terms of economic classification, the proposed suspension of funds for COVID-19 purposes is as follows:

• -R231 million from Compensation of Employees.
• -R33 million from Transfers and Subsidies: Department Accounts and Agencies.This affects Legal Aid South Africa (R23 million) and the Special Investigating Unit (R10 million).
• -R122 million from Payments for Capital Assets: Buildings and Other Fixed Assets under the Court Services programme.

 

1. Reallocations/Virements

 

1. A total of R484.1 million is to be re-allocated within the Vote, either within the same programme or to another programme, for COVID-19 or other purposes:

• R195.9 million is reallocated to Administration.
• Under Court Services, virements amount to R346.2 million: R196.1 million is reallocated within the programme for COVID-19 purposes, while a further R150 million is reallocated forother purposes (the Commission of Inquiry into State Capture or “Zondo Commission”).
• Under State Legal Services, a total of -R15.5 million is reallocated to Administration for Covid-19 purposes.
• Under the NPA, virements from the programme amount to R30.5 million, reallocated to Administration for COVID-19 purposes.
• Under the Auxiliary and Associated Services, a total of R30 million is reallocated within the programme for COVID-19 purposes.

 

1. In terms of economic classification, the following virements are made:

• R17 million is reallocated within Compensation of Employeesfor other purposes (the Zondo Commission).
• R233.6 million is reallocated from Goods and Services. However, R264.7 million is reallocated to Goods and Services for COVID-19 purposes and a further R132 million for other purposes (the Zondo Commission). Therefore, the net change proposed is R162.4 million.
• R100.4 million is reallocated for COVID-19 purposes and R133 million for other purposes (State Capture Commission) from Payments for Capital Assets: Building and Other Fixed Assets. Of the R100.4 million reallocated, R70 million is reallocated to Payments for Capital Assets: Machinery and Equipment for COVID-19 purposes.

 

1. PROGRAMMES

 

1. Administration

 

1. The purpose of this programme is to provide strategic leadership, management and support services to the Department.

 

1. The Adjustments Budget proposes to increase the allocation to Administrationby R195 978, from R2.35 billion to R2.55 billion, in the form of virements to Goods and Services of R45.9 million and for the Zondo Commission of R150 million, as follows:

 

Table 3: Administration – Suspensions and reallocations per economic classification

R’000	Allocated Budget	Proposed suspensions	Reallocations forCOVID-19 funding	Reallocations for the Zondo Commission	Total allocation proposed
Compensation of Employees	630 057	0	0	17 000	647 057
Good and Services	1 695 520	0	45 978	0	1 741 498
Transfers and Subsidies	18 637	0	0	0	18 637
Payments for Capital Assets	12 242	0	0	133 000	145 242
Total	2 356 456	0	45 978	150 000	2 552 434

 

1. Court Services

 

1. The Court Services programme facilitates the resolution of criminal and civil cases, and family law disputes, by providing accessible, efficient and quality administrative support to the courts and to manage court facilities.

 

1. A total of R7.18 billion is allocated to Court Services in the main appropriation. The Adjustments Budget proposes that the allocation to Court Services be reduced by suspensions and virements totalling –R348 million, from R7.18 billion to R6.83 billion, as follows:

 

Table 4: Court Services – Suspensions and reallocations per economic classification

R’000	Allocated Budget	Proposed suspensions	Reallocations for COVID-19 funding	Reallocations for the Zondo Commission	Total allocation proposed
Compensation of Employees	4 622 215	-76 000	0	-17 000	4 529 215
Good and Services	1 564 550	0	60 440	0	1 624 990
Transfers and Subsidies	31 016	0	0	0	31 016
Payments for Capital Assets	962 502	-122 000	-60 440	133 000	647 062
Total	7 180 283	-198 000	0	-150 000	6 832 283

 

1. The proposed suspension of -R76 million from the programme’s Compensation of Employees’ budget is made from ‘savings’ as a result of delayed/suspended recruitment. A further –R17 million under Compensation of Employeesis reallocated to Administration for theZondo Commission.

 

1. Under Payments for Capital Assets, -R122 million is suspended for COVID-19 purposes.

 

1. Also under Payments for Capital Assets, -R60.4 million and -R133 million are virements to Administration for COVID-19 purposes and for the Zondo Commission, respectively.

 

1. State Legal Services

 

1. The programme provides legal and legislative services to government; supervises the administration of deceased and insolvent estates an estates undergoing liquidation; manages the Guardian’s Fund; facilitates constitutional development; and undertakes research.

 

1. A total of R1.43 billion is allocated to State Legal Services in the main Appropriation. The Adjustments Appropriation Bill proposes that -R35 million be suspended from the Compensation of Employees budget.

 

1. A further –R15 528 from Goods and Services is proposed for reallocation to Administration for Covid-19 purposes.

 

Table 5: State Legal Services – Suspensions and reallocations per economic classification

R’000	Allocated Budget	Proposed suspensions	Reallocations for COVID-19 funding	Reallocations for the Zondo Commission	Total allocation proposed
Compensation of Employees	1 238 726	(35 000)	0	0	1 203 726
Good and Services	149 549	0	(15 528)	0	134 021
Transfers and Subsidies	24 255	0	0	0	24 255
Payments for Capital Assets	19 397	0	0	0	19 397
Total	1 431 927	-35 000	15 528	0	1 381 399

 

1. National Prosecuting Authority

 

1. The National Prosecuting Authority provides a co-ordinated prosecuting service that ensures that justice is delivered to the victims of crime through general and specialized prosecutions; removes the profit from crime; and protects certain witnesses. The NPA also forms part of the Anti-Corruption Task Team (ACTT).

 

1. The NPA’s Annual Performance Plan for 2020/21 is unaffected by the pandemic although the number of cases finalized are reduced as a result of fewer cases being heard.

 

1. The NPA is allocated R4.58 billion for 2020/21 (in comparison to R4.03 billion in 2019/20). Notably, the NPA receives an additional R1.2 billion over the medium term through reprioritised funding for: AFU and SCCU capacity, the Investigative Directorate, National Prosecuting Service capacity (critical posts), Aspirant Prosecutor Programme, Witness Protection and Support Services (safety and security).

 

1. The Adjustments Budget proposes that the allocation to the NPA for 2020/21 be reduced by suspensions and virements amounting to –R180.5 million, from R4.58 billion to R4.40 billion, as follows:

 

Table 6: NPA – Suspensions and reallocations per economic classification

R’000	Allocated Budget	Proposed suspensions	Reallocations for COVID-19 funding	Reallocations for the Zondo Commission	Total allocation proposed
Compensation of Employees	3 974 211	-150 000	0	0	3 824 211
Good and Services	553 758	0	-30 450	0	523 308
Transfers and Subsidies	19 963	0	0	0	19 963
Payments for Capital Assets	35 992	0	0	0	35 992
Total	4 583 924	-150 000	-30 450	0	4 403 474

 

1. An amount of –R150 million is to be suspended from Compensation of Employees, as a result of delayed/deferred recruitment. The NPA reports that, for now, it will only fill 200 of 400 positions for Aspirant Prosecutors, although it hopes to increase this number, funds permitting.

 

1. An amount of R30.45 million is reallocated from Goods and Services to Administration for COVID-19 purposes.

 

1. Auxiliary and Associated Services

 

1. The programme provides a variety of auxiliary services associated with the Department’s aims and also funds transfer payments to the South Africa Human Rights Commission, the Public Protector South Africa, Legal Aid South Africa, the Special Investigation Unit and the President’s Fund.

 

1. The spending focus of this programme is for the modernisation of the justice system (Justice Modernisation subprogramme) and transfers to public entities and constitutional institutions.

 

1. The Adjustments Budget proposes to suspend –R33 million from the allocations to the following public entities: Legal Aid SA and the Special Investigating Unit (SIU) under Transfers and Subsidies.

 

Table 7: Auxiliary and Associated Services – Suspensions and reallocations per economic classification

R’000	Allocated Budget	Proposed suspensions	Reallocations for Covid-19 funding	Reallocations for the State Capture Commission	Total allocation proposed
Compensation of Employees	-	-	-	-	-
Good and Services	1 195 804	0	-30 000	0	1 165 804
Transfers and Subsidies	3 078202	-33 000	0	0	3 045 202
Payments for Capital Assets	34 025	0	30 000	0	64 025
Total	4 308 031	-33 000	0	0	4 275 031

 

 

1. OBSERVATIONS

 

1. The Committee notes the Department’s stance that the proposed budget suspensions are far less severe than was initially expected. The reductions are largely to be funded by the suspension of recruitment and the commencement and finalization of capital works projects. Furthermore, a total of R334 million was able to be reprioritized within the Vote for PPE, sanitation and cleaning of courts and justice service points, funded from savings in items such as travel and subsistence, fleet and agency services and capital expenditure, as result of COVID-19. In addition, ring-fenced funding allocated to the Integrated Criminal Justice Strategy/Integrated Justice System under the Justice Modernisation subprogramme is not affected by the suspensions, which will allow the Department to accelerate ICT projects aimed at fast-tracking court modernization and digitization. While acknowledging the unprecedented situation that has necessitated the proposed budget suspensions and the need to reallocate resources within Vote, the Committee wishes to highlight the importance of a stable, well-functioning justice system in which rights can be swiftly enforced for the country’s economic growth. The Committee is extremely concerned about the impact of COVID-19 on our courts, which are only able to hear criminal and civil matters on a restricted basis. At some stage, additional resources will be needed to address the fast increasing backlogs in order to prevent a collapse in our legal system. The Committee, therefore, does not support any further/future cuts to the Vote, as it believes that this would be counterproductive to the maintenance of the rule of law.

 

1. The Committee welcomes that neither the Public Protector South Africa and the South African Human Rights Commission will be affected by the proposed budget suspensions. The Committee wishes to highlight its view that any decision to cut the allocation to the Chapter 9 institutions should carefully consider their unique contribution towards strengthening our constitutional democracy, as well as the duty placed on other state institutions to assist these institutions.

 

1. The Committee notes that Parliament is required to approve certain virements: Under Court Services, an amount of R193.4 million is reallocated from Payments for Capital Assets to Administration for Covid 19 purposes and to fund the Zondo Commission. The These virements are reprioritized ‘savings’ as a result of suspending the commencement and finalization of capital works projects. However, the Committee repeats its concern about the slow pace of delivery of capital works projects: typically, the building of courts takes far longer to finish than projected and, consequently, costs escalate hugely. There are also challenges relating to the quality of the work that is done. The Committee has previously committed to scheduling a dedicated briefing involving all roleplayers on all aspects of the infrastructure programme, including planned maintenance, and will do so as soon as the programme permits.

 

1. The Committee welcomes the Department’s intention to continue with its recruitment of 49 senior management positions as part of efforts to improve the Department’s governance and performance, despite the cut toits salaries’ budget.

 

1. The Committee notes the Department’s intention to accelerate ICT projects aimed at fast tracking court modernization and digitization. The Committee is informed that the Minister intends to take a revised Integrated Justice System (IJS) project plan, which takes into account the priorities arising from COVID-19, to Cabinet soon. The revised IJS project includes the accelerated roll-out of the Audio-Visual Remand (AVR) link systems to additional courts and correctional centres; the development of secure Audio-Visual facilities at the seats of regional courts districts courts in major centres to enable virtual trials (and development of legislation for this purpose); digitisation of documents shared across the criminal justice system value chain.Although, the Committee has expressed some uncertaintygiven the slow pace of efforts to integrate and modernize the justice system despite the allocation of considerable resources for this purpose, it hopes that it is proved wrong. Certainly, the pandemic has highlighted the urgent need to modernize court processes and, perhaps, this is the impetus that is needed. The Committee has previously identified the need to engage with the Department and stakeholders on this item and once more commits to arranging a meeting as soon as its programme permits.

 

1. The Committee appreciates the work that the Department and NPA do to combat gender-based violence. In this regard, the Committee is pleased that the rollout of further dedicated sexual offences courts and Thuthuzela Care Centres are not affected by budget cuts. In addition, the Department is to introduce three amendment Bills aimed at curbing gender-based violence very soon. Nonetheless, the Committee agrees that theseare reactive measures thatcannot supplant broader preventative measures. The Committee is aware that questions keep being raised about the allocation of resources to combat gender-based violence. Understandably, given our current financial challenges, there seems to be the fear that the necessary resources will not fully materialize or, if allocated, will not be used well. In this regard, the Committee is of the view that,going forward, departments could do more to clearly identifyin their budgets funds allocated for spending on vulnerable groups and the related purposes. Not only will thispromote greater accountability in budget processes from a gender perspective, it will ensure that policy and budget decisions take gender perspectives into account and that policies on gender equality are matched with adequate resource allocations. The Committee urges the Department to consider taking the initiative in this regard. In the meantime, the Committee requests the Department to provide a breakdown of spending on vulnerable groups, as well as the related purpose of the allocation by 31 August 2020.

 

1. TheCommittee notes that the NPA does not believe that its plans for 2020/21 will be affected although the courts are not operating at full capacity and, therefore, fewer cases will be finalised. The Committee was briefed recently on the Department’s Risk Adjusted Plan to ensure that interruptions to sanitize affected courts are resolved within the shortest time possible, with minimum impact of service delivery, as well as the Criminal Case Backlog project. The Committee welcomes the NPA’s participation in identifying measures to reduce the impact of COVID-19 on caseload and to find innovative ways to ensure that the outcomes and outputs committed to will be effected. However, despite these efforts, the Committee finds it is hard to believe that certain targets won’t be affectedbut will monitor performance as part of the quarterly reporting process.

 

1. The Committee has, in the past, expressed itself very clearly on the need for additional resources to address the NPA’s capacity challenges which constrain, even threaten, its ability to successfully pursue prosecutions. The Committee has supported the NPA’s efforts for added funding for further capacity and was, therefore, very pleased that the Budget for the 2020 MTEF, among others, allocates funds for the recruitment of additional prosecutorial capacity, as well as for the Aspirant Prosecutors’ programme. It is, therefore, very disappointing that the NPA has not been able to pursue recruitment at the speed expected although its plans over the medium term remain intact. The Committee is informed that the suspension of funding from the NPA’s salaries budget is possible because of the reduced recruitment of aspirant prosecutors for 2020/21; and slower than anticipated recruitment of external capacity as a result of delays in obtaining SAQA accreditation because of Covid-19. The NPA has also focused on internal promotions, which has not had much effect on the uptake of allocated funds, but is necessary for retention of staff.The Committee will continue to monitor appointments, as part of the quarterly reporting process.

 

1. The Committee supports the NPA’s in its ‘corruption busting’ role and, therefore, notes the NDPP’s comments that the Asset Forfeiture Unit has been undermined by a lack of capacity and resources. The Committee, therefore, intends to pay closer attention in future to the work of the Asset Forfeiture Unit (given its key role in freezing assets and the recovery of misappropriated assets to the State) and Special Commercial Crime Unit, as well as the Special Investigating Unit.

 

1. RECOMMENDATION

 

1. The Committee recommends that the National Assembly approve the proposed adjustments provided for in Vote No. 25 – Justice and Constitutional Development for 2020/21, as contained in the Adjustments Appropriation Bill [B10-2020].

 

Report to be considered.