ATC201203: Report of the Joint Standing Committee on the Financial Management of Parliament on the Parliament of the Republic of South Africa’s 2020/21 Mid-Year Performance, dated 2 December 2020

Joint Standing Committee on Financial Management of Parliament

Report of the Joint Standing Committee on the Financial Management of Parliament on the Parliament of the Republic of South Africa’s 2020/21 Mid-Year Performance, dated 2 December 2020

 

The Joint Standing Committee on the Financial Management of Parliament having considered the Parliament of the Republic of South Africa’s 2020/21 mid-year performance, reports as follows:

 

1.         Introduction

1.1        Section 4 of the Financial Management of Parliament and Provincial Legislatures Act, No 10 of 2009 (the FMPPLA) provides for the establishment of an oversight mechanism to maintain oversight of the financial management of Parliament. The Joint Standing Committee on the Financial Management of Parliament (the Committee) was established in terms of the Joint Rules of Parliament. The Committee has the powers afforded to parliamentary committees under sections 56 and 69 of the Constitution.

1.2        Section 52 of the FMPPLA requires that the accounting officer must, within 30 days of the end of each quarter, report to the Executive Authority on Parliament’s quarterly performance in respect of the implementation of the Annual Performance Plan (APP). The Executive Authority in turn, and in terms of section 54 of the FMPPLA, must table each quarterly report five working days of receiving it for the consideration of the oversight mechanism i.e. the JSC Financial Management of Parliament. The 2020/21 Quarter 2 report was duly tabled, and on 28 August 2020.

1.3        Parliament’s 2020/21 mid-year performance report was tabled on4 November 2020for consideration in terms of section 54(2) of the FMPPLA. The acting Secretary to Parliament—the accounting officer—and her senior management team appeared before the Committee in a meeting held on 20 November 2020 where the institution’s performance in the period under review was interrogated.

1.4        This report should be read along with Parliament’s 2019-2024 Strategic Plan, the 2020/21 Annual Performance Plan and budget, and the Committee’s report in respect thereof.

1.5        The report comprises four parts: Part A,containing the background to the mid-year performance report; Part B summary of the institution’s financial and performance information for the period under review; Part C,containing the Committee’s observations; and Part D, containing the Committee’s recommendations.

 

Part A

 

2.         Background

 

2.1        Mandate

2.1.1     Parliament derives its mandate from:

-           Chapter 4 of the Constitution of the Republic of South Africa, No. 108 of 1996, which sets out its composition, powers and functions;

-           the FMPPLA which regulates the institution’s financial management;

-           the Money Bills Amendment Procedure and Related Matters Act, 2009 No 9 of 2009 which provides procedures to amend money bills; and

-           the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act No 4 of 2004 which defines and declares the national and provincial legislatures’ powers, privileges and immunities.

 

2.1.2     Section 53 of the FMPPLA provides for Parliament’s mid-year expenditure and performance to be assessed. Section 53(1) requires that the Secretary to Parliament must submit a report assessing the administration’s performance during the first half of the financial year to the Executive Authority by 31 October each year. The report must take into account: the monthly financial statements for the first half of the financial year, the past year’s annual report and progress made in addressing challenges identified in that year, and progress made in the implementation of the current year’s annual performance plan. The Secretary to Parliament should also recommend whether an adjustments budget may be necessary; and whether to revise projections for revenue and expenditure to the extent that this may be necessary.

 

2.1.3     Section 54 of the FMPPLA requires that the Executive Authority must table the above-mentioned mid-year reports within five days of receiving the reports from the Secretary to Parliament, and that the reports must be referred promptly to the oversight mechanism. The 2020/21 mid-year report was tabled and referred to the Committee on 4 November 2020.

 

2.2        Mission and vision

2.2.1     Parliament has as its vision to be an activist and responsive people’s Parliament that improves the quality of life of South Africans and ensures enduring equality in our society. Its mission is to represent the people and to ensure government by the people in fulfilling its constitutional functions of passing laws and overseeing executive action. To this end, the institution conducts its business in line with the following values: openness, responsiveness, accountability, teamwork, professionalism, and integrity.

 

2.3        Strategic Priorities

2.3.1     Parliament has identified only two strategic priorities for the Sixth Parliament, i.e. to strengthen oversight, and to enhance public involvement in Parliament’s activities.

2.3.2     In order to achieve the above outcome, the Sixth Parliament will:

-           improve committee oversight work in relation to the budget cycle in particular, through allowing more time in the parliamentary programme for oversight activities and encouraging committees to undertake joint oversight activities; and

-           improve the effectiveness of public hearings through greater public participation by expanding public education, better dissemination of information, effective use of broadcasting, technology and social media, the use of more official languages, and encouraging committees to undertake joint public hearings.

2.3.3     To aid the above activities, the institution will:

-           enhance research and legal support in respect of oversight activities;

-           improve members’ capacity through capacity-building programmes that will empower parliamentarians to be effective and efficient in executing their oversight responsibilities;

-           improve oversight and accountability through better monitoring, tracking and evaluation in respect of Parliament’s own work, as well as the work of the Executive;

-           ensure openness and accessibility through the use of modern technology in respect of social media, tools-of-trade, workflows and automation; and

-           cut costs to allow for operational sustainability.

 

Part B

 

The mid-year performance report is based on the revised APP of 2020/21 that was tabled in mid-July 2020. As previously reported, in 2020/21 the institution’s programmes remain structured in the same way as in the Fifth Parliament. The new structure will be implemented as of 2021/22.

 

3.         Performance at the end of the first half of 2020/21

 

3.1        Overview

3.1.1     The revised 2020/21 APP tracks 14 indicators, some aligned to the previous APP and others, new. Of the 14 indicators outlined in the APP, 7 have quarterly targets, and 7, annual targets that were not tracked in the period under review.

 

3.1.2     By the end of the period under review, 5 of the 7 targets had been met i.e. 71.43 per cent. Table 1 below, illustrates the performance across the 5 programmes.

Programme	Total number of indicators	Annual targets	Targets achieved	Targets not achieved
Strategic Leadership and Governance	2	0	1	1
Administration	2	0	2	0
Core Business	3	3	2	1
Support Services	4	4	0	0
Associated Services	None	n/a	n/a	n/a
Total	13	7	5	2

            Table 1: Performance across programmes

 

3.2        Programme-by-programme summary of performance information

Paragraphs 3.2.1 to 3.2.21below provide a summary of Parliament’s performance across programmes.

 

Programme 1:    Strategic Leadership and Governance

3.2.1     This programme provides for political and strategic leadership, governance and institutional policy, executive communication and co-ordination, and oversight of the development and implementation of Parliament’s strategic plan, annual performance plan and budget. Programme 1 comprises the Office of the Speaker of the National Assembly, the Office of the Chairperson of the National Council of Provinces (NCOP), the Parliamentary Budget Office (PBO), the still-to-be-established Treasury Advice Office and the Office on Institutions Supporting Democracy (OISD).

 

3.2.2     The strategic objectives under this programme are to:

-           improve independent, objective and professional analysis and advice related to the budget and other money bills tabled in Parliament by increasing advisory and analytical reports from 8 to 19 by 2019;

-           improve the provision of objective strategic, procedural and legal advice, research and content support to Parliament on institutions supporting democracy-related matters to strengthen constitutional democracy; and

-           improve stakeholder liaison and coordination by facilitating implementation of Parliament’s resolutions on institutions supporting democracy-related matters.

 

3.2.3     One of the two targets set in relation to this programme was met. The target to deliver 100 per cent of analytical reports to support Parliament on ISDs related matters within agreed to timeframes was met.

3.2.4     The administration aimed to deliver 90 per cent of all procedural and legal to support Parliament on ISD-related matters within 7 days, but only achieved 76,92 per cent (or 30 of 39 reports). The under-performance was due to the significant increase – from 8 reports in quarter 1 to 31 in quarter 2 - in work volume arising from committee activity.

 

Programme 2:    Administration

3.2.5     The main strategic objectives under this programme are to:

-           improve institutional capacity by providing specialised development programmes for parliamentarians; and

-           improve coordination, cooperation and intergovernmental relations between Parliament and provincial legislatures by implementing Speakers’ Forum and SALSA resolutions.

 

3.2.6     The administration planned to deliver two reports on the implementation of the sector strategy, and deliver 2 capacity-building programmes for parliamentarians.All targets in respect of this programme were achieved.

 

Programme 3:    Core Business

3.2.7     Thestrategic objectives under this programme are to:

-           improve the availability of advisory and information services, in support of plenary and committee proceedings, from 91 to 95 per cent by 2021; and

-           increase access and participation in the processes of Parliament through enhanced programmes to ensure participatory democracy.

3.2.8     The administration only met 67 per cent of the targets set in respect of this programme. Two programmes each were adopted by the National Assembly and the National Council for Provinces, as planned.

3.2.9     In respect of advisory, research and information services the administration failed to ensure that 93 per cent of information was available within service charter levels. Only 83,34 per cent of information was available. The under-performance was ascribed to “limitation of technology” in the implementation of remote Hansard support to parliamentarians.

3.2.10   Annual targets in respect of this programme are measured through independent surveys administered by IPSOS. The surveys will measure the percentage of the population that has access to participate in parliamentary processes, and the percentage increase in participation in the NA and NCOP and their committees. In the first quarter specifications and terms of reference were drafted. The terms of reference for the 2020/21 survey have been finalised for sign-off, and IPSOS has been appointed as the service provider. The survey questionnaire has been finalised and submitted to the relevant stakeholders for approval.

 

Programme 4:    Support Services

3.2.11   This programme is aimed at providing institutional communication services, human resource management, information communication technology, institutional support services and Members’ support services.

3.2.12   The strategic objectives under this programme are to:

-           improve overall members’ satisfaction with service rendered from 61 to 64 per cent by 2021;

-           increase awareness of the business of Parliament from 27 to 29 per cent by 2021 through improving communication;

-           leverage current, new and innovative technologies to meet the information and communication needs of parliamentarians and staff by increasing universal access of integrated information services from 80 to 85 per cent by 2021;

-           optimise facilities’ usage and provide adequate and appropriate functional space from 67 to 70 per cent by creating a conducive working environment to achieve an increased level of satisfaction; and

-           increase availability of strategic competencies, talent and skills by increasing performance on the talent management index by 3 per cent by 2021.

3.2.13   All of the targets set in relation to this programme are measured annually. In respect of Communication Services, IPSOS has been appointed to conduct both the public perception and stakeholder surveys. IPSOS declared that Covid-19 had impacted negatively on the execution of their 2020 wave-one research project which will have a knock-on effect on the launch ofthe wave-two fieldwork.

3.2.14   In respect of Digital Services ICT, the percentage of universal access is a cumulative annual target which is tracked quarterly. At the time of reporting access stood at 93,47 per cent. The annual target of 94 per cent is likely to be met or exceeded.

3.2.15   With regard to Facility Management Services, the Institutional Support Services Division (ISSD) and the Parliamentary Communication Services unit are in the process of acquiring a service provider to undertake the customer satisfaction survey.

3.2.16   As far as talent retention, there had been three resignations by the time of reporting, and the staff turnover stood at 0,23 per cent well below the targeted 5 per cent.

 

Programme 5:    Associated Services

3.2.17   The purpose of this programme is to provide travel, communication and other facilities for Members of Parliament to fulfil their duties as elected public representatives; and to provide financial support to political parties represented in Parliament, their leaders and constituency offices.

3.2.18   Thestrategic objectives in respect of this programme are to:

-           reduce the average turnaround time for the processing and payment of reimbursements to parliamentarians from 2,5 to 2,4 working days by 2021; and

-           ensure effective payment and compliance of transfer payments.

3.2.19   By the end of the period under review the turnaround time for the processing of claims and service provider payments stood at 1,46 days.

3.2.20   In respect of the facilities provided:

• the bereavement payments due to the families of the five parliamentarians who had died in the period under review, were made on receipt of the required documentation; and
• new parliamentarians received their facilities (equipment,etc.) within 7 days of being sworn in.

3.2.21   In respect of bursaries and capacity-building, the following was reported:

• the average turnaround time for the payment of bursaries stood at 19 days by the end of the period under review;
• 26 bursaries were processed in the second quarter;
• 49 parliamentarians registered for Governance and Leadership programme at the University of the Witwatersrand; and
• Parliamentarians serving on the Portfolio Committee on Communications registered for an online short-term course.

 

4.         Financial Performance in the period under review

4.1        Overview

4.1.1     Table 2 below illustrates that by the end of the period under review, Parliament had spent R1,093 billion or 40 per cent of the annual budget of R2,706 billion. Spending for the first and second quarter stood at 20 and 24 percent respectively. Indications are that the institution will underspent by 5 percent or R128,788 million by the end of the financial year.

Programmes	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Strategic Leadership & Governance	21,079	19%	22,023	20%	43,102	38%	112,216
Administration	29,530	17%	33,912	19%	63,442	36%	176,619
Core Business	126,371	18%	129,588	18%	255,959	36%	709,882
Support	86,426	18%	90,449	19%	176,875	37%	479,358
Associated Services	151,950	21%	159,803	22%	311,753	43%	720,302
SUB TOTAL	415,356	19%	435,775	20%	851,131	39%	2,198,377
Direct Charges	120,966	24%	121,133	24%	242,099	48%	507,157
TOTAL	536,322	20%	556,908	21%	1,093,230	40%	2,705,534

Table 2: Overview of Expenditure (Source: Parliament of the RSA)

4.1.2     As indicated above, the underspending of 10.6 percent or R129,119 million recorded by the Parliament at the end of the first two quarters is due to significant underspending on programmes such as Core Business, Support Services and Strategic Leadership & Governance.

4.1.3     Table 3 below, illustrates expenditure by economic classification. Per the table, Parliament is likely to underspend in relation to all categories:

• spending on compensation of members stood at 48 per cent by the end of the period under review, and an underspend of 21 per cent was likely by the end of 2020/21;
• spending on compensation of employees stood at 43 percent by the end of the period under review, and an underspend of R42,523million was likely by the end of 2020/21;
• spending on goods and services - APP and Members’ entitlements -stood at 16 and 20 percent respectively by the end of the period under review, and an underspendof R65,506million and R12, 573million was likely at the end of 2020/21;
• spending on capital expenditure stood at 8 percent by the end of the period under review, and an underspend of R457 000 was likely at the end of 2020/21;
• spending on transfers against the annual budget stood at49 percent by the end of the period under review, and an underspend of 1 percent or R4,220millionwas likely at the end of 2020/21.

Programmes	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	R’000	%	R’000	%	R’000	%
Compensation of Members	120,966	24%	121,133	24%	242,099	48%	507,157
Compensation of employees	266,728	22%	262,554	21%	529,282	43%	1,222,654
Goods & Services (APP)	15,983	5%	33,366	11%	49,349	16%	314,652
Goods & Services (Members Entitlements)	6,392	5%	17,753	15%	24,145	20%	120,000
Transfers	124,184	25%	120,856	24%	245,040	49%	500,302
Capital Expenditure	2,069	5%	1,246	3%	3,315	8%	40,769
TOTAL	536,322	20%	556,908	21%	1,093,230	40%	2,705,534

Table 3: Expenditure by Economic Classification (Source: Parliament of the RSA)

 

4.2        Expenditure performance

The details in terms of the expenditure per programme are provided in paragraphs 4.2.1 to 4.2.7.

 

Programme 1: Strategic Leadership and Governance

4.2.1     By the end of the period under review 38 per cent of the annual budget of R112,216 million had been spent. Indications are that 96 per cent or R108,219 million of the annual budget will have been spent by the end of the financial year. Table 4 below, provides a breakdown of the spending in respect of Programme 1.

Divisions	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Office of Speaker	8,056	17%	8,618	19%	16,674	36%	46,188
Office of Chairperson	7,332	18%	7,782	19%	15,114	38%	39,979
Parliamentary Budget Office	3,586	22%	3,442	21%	7,028	43%	16,193
OISD	2,105	21%	2,181	22%	4,286	44%	9,806
Treasury Advice	0	0%	0	0%	0	0%	50
TOTAL	21,079	19%	22,023	20%	43,102	38%	112,216

Table 4: Programme 1 Expenditure (Source: Parliament of the RSA)

 

Programme 2:    Administration

4.2.2     By the end of the period under review, R63,442 million or 36 per cent of the annual budget of R176,619 million for this programme had been spent. Indications are that at the end of the financial year the programme R169,522 million or 4 per cent of the annual budget would have been spent. Table 5 below, provides a breakdown of the spending in respect of Programme 2.

Divisions	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Office of the Secretary	1,980	19%	1,935	19%	3,915	38%	10,269
Strategic Management & Governance	7,058	22%	7,085	23%	14,143	44%	32,138
Finance Management Office	12,856	17%	14,107	35%	26,963	37%	73,743
Registrar of Members’ Interest	447	18%	453	24%	900	35%	2,545
Internal Audit	2,415	14%	5,403	15%	7,818	46%	16,856
Legislative Sector Support	4,774	12%	4,929	16%	9,703	24%	41,068
TOTAL	29,530	17%	33,912	23%	63,442	36%	176,619

Table 5: Programme 2 Expenditure (Source: Parliament of the RSA)

 

Programme 3: Core Business

4.2.3     By the end of the period under review, 36 per cent of the annual budget of R709,882 for this programme had been spent. Indications are that at the end of the financial year the R648, 287 million of the annual budget will have been spent. Table 6 below, provides a breakdown of the spending in respect of Programme 3.

Divisions	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Events (SONA, Youth &Women  Parliaments)	56	0%	98	1%	154	1%	16,740
National Assembly	9,650	21%	9,821	22%	19,471	43%	45,600
National Council of Provinces	8,769	15%	8,445	15%	17,214	30%	57,307
Core Business Support	55,403	17%	60,064	18%	115,467	35%	332,581
Knowledge and Information Services	46,142	22%	44,760	21%	90,902	43%	212,742
International Relations and Protocol	6,351	14%	6,400	14%	12,751	28%	44,912
TOTAL	126,371	18%	129,588	18%	255,959	36%	709,882

Table 6: Programme 3 Expenditure (Source: Parliament of the RSA)

 

 

 

 

Programme 4: Support Services

4.2.4     By the end of the period under review 37 per cent of the annual budget of R470,358 million for this programme had been spent. Indications are that at the end of the financial year R454,161million of the annual budget will have been spent. Table 7 below provides a breakdown of the spending in respect of Programme 4.

Divisions	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Deputy Secretary: Support Services	935	21%	956	21%	1,891	42%	4,517
Parliamentary Communication Services	14,507	20%	14,990	21%	29,497	41%	71,967
Human Resources	14,845	15%	14,943	15%	29,788	30%	100,962
Information Communication and Technology	19,352	19%	22,654	23%	42,006	42%	99,876
Institutional Support Services	32,852	18%	32,886	18%	65,738	36%	183,700
Members Support	3,935	21%	4,020	22%	7,955	43%	18,336
TOTAL	86,426	18%	90,449	19%	176,875	37%	479,358

Table 7: Programme 4 Expenditure (Source: Parliament of the RSA)

 

            Programme 5:    Associated Services

4.2.5     By the end of the period under review, 43 per cent of the annual budget of R720,302 million for the programme had been spent. Indications are that there will be an underspending of R27,443 million by the end of the financial year. Table 8 below, provides a breakdown of the spending in respect of Programme 5.

Divisions	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Members Facilities	27,766	13%	38,947	18%	66,713	30%	220,000
Transfers	124,184	25%	120,856	24%	245,040	49%	500,302
TOTAL	151,950	21%	159,803	22%	311,753	43%	720,302

Table 8: Programme 5 Expenditure (Source: Parliament of the RSA)

           

Direct Charges

4.2.6     By the end of the period under review spending for Members’ remuneration stood at R242,099 million or 48 per cent of the annual budget of R507,157 million. Indications are that by the end of the financial year the institution will have underspent by 1 per cent on this budget. The variance will be surrendered to the National Revenue Fund in line with section 23(4) of the FMPPLA. Table 9 below provides a breakdown of the spending in respect direct charges.

Details	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Member Remunerations	120,966	24%	121,133	24%	242,099	48%	507,157
TOTAL	120,966	24%	121,133	24%	242,099	48%	507,157

Table 9: Direct Charges (Source: Parliament of the RSA)

 

Part C

5.         Observations

5.1        Implementation of section 53(1)(b) of the FMPPLA

5.1.1     Section 53(1)(b) of the Financial Management of Parliament and Provincial Legislatures Act (FMPPLA) requires that before 31 October of each year, the Accounting Officer must submit to the Executive Authority a report that assesses the performance of Parliament’s administration during the first half of the financial year, taking into account-the past year’s annual report, and progress on resolving problems identified in the report. The Committee notes with concern that the mid-year report does not contain such a progress report.

 

5.2        Mitigation Strategy

5.2.1     The Committee has noted that although reasons are provided for the non-achievement of certain targets, including those related to the Service Charter, no details are provided in respect of how these risks would be mitigated. Mitigation plans are critical for monitoring performance in respect of achieving targets.

 

5.3        Projected underspending

5.3.1     As shown in Table 2 above, Parliament is projected to underspend its budget by an amount of R254, 067 million by the end of the 2020/21 financial year. All programmes are projected to underspend their budgets. The Committee notes that while the mid-year report indicates the projected R254, 067 million underspend by the end of the financial year, no reason/s are provided for it. Understanding the reasons for the underspending is important, particularly in respect of which programmes will be affected.

5.3.2     In June 2020 Parliament’s budget too was cut during the special budget adjustment. As a consequence, Parliament had to revise its plans which resulted in the tabling of a revised APP in July 2020. It is a cause for concern that less than three months after the revision considerable underspending was projected. The Committee is concerned about the methodology the administration applies when preparing its budget, particularly whether a thorough costing is done across all programmes.

 

5.4        Organisational re-alignment

5.4.1     Parliament has reported that the organisational re-alignment project was progressing as planned. Some activities towards the implementation of the revised organisational structure have been completed. These include the structural review of the offices of the Executive Authority, engagements with key stakeholders to review the Legal Services, Research and Advisory Services, International Relations and Protocol, and Registrar of Members Interest units. The Committee notes with concern that it has not been consulted on, or presented with the organisational re-alignment project.

 

5.5        Filling of critical vacancies

5.5.1     The Committee has previously reported its concerns about long-standing senior management vacancies. At the time of reporting the senior management posts reported on previously were – Secretary to Parliament, Chief Financial Officer, Chief Audit Executive, Director of the PBO, Treasury Advice Office – had still not been filled. The Committee does, however, note the progress – albeit slow – that has been made in this regard.

 

5.6        Annual Performance Targets

5.6.1     The inability of Parliament to measure some of its performance indicators and targets on a quarterly basis limits the achievement of the primary purpose of these performance indicators and targets i.e. to track on-going performance progress in respect of the implementation of Annual Performance Plans and thereby the Strategic Plan of Parliament. Reporting on performance indicators and targets on a quarterly basis provides progress on the implementation of the institution’s plans. Further, quarterly performance reporting serves as an important management tool for accounting officers and executive authorities, and as an oversight instrument for oversight bodies such as the JSCFMP. It is inadequate to merely provide a synopsis of the progress made to date.

 

5.7        Impact of the Covid 19 pandemic

5.7.1     The Committee has noted Parliament’s response to the COVID 19-pandemic and the admirable interventions to ensure that Parliament’s work could continue through virtual sittings of its houses and committees. The Committee also acknowledges the impact the changes in the work environment has had on Parliament’s budget.

 

5.8        Budget reduction: impact of Parmed-contributions

5.8.1     The Committee notes that despite previous recommendations to have the matter around the Parmed Medical Scheme resolved, Parliament remains responsible for former members of provincial legislatures and Parliament’s contributions. No real progress has been made in this regard, despite previous indications that an actuarial scientist would be appointed to determine how the expenditure may be disaggregated as part of the process to transfer the responsibility for former members of the nine provincial legislatures, to those legislatures.

 

5.9        Petitions

5.9.1     Petitions are useful oversight mechanisms whereby one can ascertain progress made as far as service delivery, yet the NA and the NCOP have experienced long delays in their processing. It is important for members of the public to know that concerns raised via petitions will receive Parliament’s timeous attention.

 

Part D

6.         Recommendations

The Executive Authority should provide the Committee with a response to the recommendations below within 30 days of the adoption of this report by the NA and the NCOP.

 

6.1        Implementation of section 53(1)(b) of the FMPPLA

6.1.1     The Committee should be provided with a report on progress made in respect of the resolving issues of concerns raised in the 2019/20 Annual Report, as well as in the Committee’s report on Parliament’s 2019/20 Annual Report. All future quarterly reports should include an update on progress made in this regard.

 

6.2        Mitigation Strategy

6.2.1     The Committee should receive a detailed briefing in respect of the institution’s risk mitigation strategy and plans.

 

6.3        Projected underspending

6.3.1     The Committee should be provided with a report detailing which plans will be affected, and how they will be affected.

6.3.2     The Committee should be provided with an explanation for the under-spending and how future variances in the planned and actual expenditure will be mitigated.

 

6.4        Organisational re-alignment project

6.4.1     The organisational re-alignment project should be presented to the Committee with particular attention to the rationale for the review, progress made to date and stumbling blocks, if any.

 

6.5        Filling of critical vacancies

6.5.1     The Committee should be kept abreast of progress made in respect of the filling of the vacancies mentioned in paragraph 5.5.1 above. In light of the important role most of them play in the stability of the administration, and the institution’s compliance with key legislation, including those governing financial management, the posts should be filled as a matter of urgency, and by the end of the 2020/21 financial year.

 

6.6        Annual Performance Targets

6.6.1     The Committee recommends again that all performance targets set for assessment on an annual basis, be broken down to milestones that can be tracked quarterly. This should be done with immediate effect, and if not, the Committee should be provided with an explanation for why this is not possible.

 

 

6.7        Impact of the COVID 19-pandemic

6.7.1     The Committee should be provided with a detailed report on how the COVID-19 pandemic has affected the operations and budget of the institution, including a breakdown of all COVID-19 related procurement.

 

6.8        Budget reduction: impact of Parmed contributions

6.8.1     The Committee again recommends that Parliament makes every effort to present the National Treasury with a feasible alternative to the current manner in which the medical aid contributions for former members of Parliament and provincial legislatures are handled. The Committee should be presented with the institution’s progress in this regard by the end of the financial year.

 

6.9        Petitions

6.9.1     Committee recommends that the necessary interventions are made to ensure that petitions are processed in line with NA Rules 344 to 350, and NCOP Rules 229 to 236. The processing of petitions should be completed within three months (excluding recess periods) of service of petitions on the Speaker of the NA or the Chairperson of the NCOP. All quarterly reports should include a report on progress made in the processing of petitions.

 

Report to be considered.