ATC220307: Report of the Joint Standing Committee on the Financial Management of Parliament on the Parliament of the Republic of South Africa’s 2021/22 Mid-Year Performance, dated 4 March 2022

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 2021/22 Mid-Year Performance, dated 4 March 2022

 

The Joint Standing Committee on the Financial Management of Parliament having considered the Parliament of the Republic of South Africa’s 2021/22 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 of the Republic of South Africa, 1996 (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 within 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 on 5 November 2021.

1.3       Parliament’s 2020/21 mid-year performance report was tabled on 8 November 2021 for consideration in terms of section 54(2) of the FMPPLA. The senior management team appeared before the Committee in a meeting held on 26 November 2021 where the institution’s performance in the period under review was interrogated, and submitted written responses to issues not responded to in that meeting, on 10 December 2021.

1.4       This report should be read along with Parliament’s 2019-2024 Strategic Plan, the 2021/22 APP and budget, and the Committee’s reports in respect thereof.

1.5       This report comprises three 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;

-           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 APP. 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 report within five days of receiving the reports from the Secretary to Parliament, and that the reports must be referred promptly to the oversight mechanism i.e. the Joint Standing Committee on the Financial Management of Parliament.

 

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 by 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 by encouraging committees to undertake such activities jointly.

-           improve the effectiveness of public hearings through greater public participation thorough 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

 

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

 

3.1      Overview

3.1.1   The mid-year performance report is based on the tabled 2021/22 APP which has been aligned to the Strategic Plan of the Sixth Parliament.

3.1.2   Twelve indicators were measured, nine of which are new. The performance measures focussed on whether parliamentarians were satisfied with the services provided by the parliamentary service. Parliamentarians were requested to rate the services provided along five dimensions statistically correlated to client satisfaction.

3.1.3   The Member Satisfaction Survey-method was first introduced in 2021/22 and hence there is now benchmark for its targets. The four surveys that will have been conducted by the end of the financial year will create a realistic benchmark for the next financial years. As reported during the first quarter of 2021/22 the absence of an historical benchmark is the main reason for the largely positive variances between actual performance and targets for the institutional performance indicators.

3.1.4     Table 1 below reflects the outcome of the mid-year client satisfaction survey. Programme 1 has two performance indicators, both of which were achieved. Programme 2 has ten performance indicators, and these too were achieved. The overall member satisfaction score was 82,55 per cent with the administration scoring best on fairness, usefulness, reliability, timeliness and ease of access, in that order.

Indicator	Overall Member Satisfaction	Ease of Access	Timeliness	Reliability	Fairness	Usefulness
ICT Services	90,21%	88,17%	89,33%	90,90%	N/A	90,77%
Facilities Management Services	80,18%	80,98%	77,99%	80,13%	N/A	80,83%
Capacity Building Services	74,25%	72,01%	74,22%	74,72%	N/A	74,74%
Research Services	85,55%	85,24%	84,76%	84,58%	85,77%	87,01%
Content Advice	85,59%	85,89%	85,50%	85,18%	85,33%	85,96%
Procedural Advice	80,21%	79,33%	78,76%	80,97%	80,51%	80,51%
Legal Advice	79,85%	78,79%	79,11%	80,32%	79,93%	80,24%
Committee Support Services	88,72%	89,13%	88,77%	88,69%	88,2%	88,7%
Public Participation Support	78,41%	77,53%	78,68%	78,93%	78,69%	78,1%

Table 1: Outcome of Member Satisfaction Survey, Mid-Year 2021/22 (Source: Parliament of the RSA)

 

3.2       Programme-by-programme summary of performance information

Paragraphs 3.2.1 to 3.2.29 provide a summary of Parliament’s performance across programmes.

 

Programme 1: Administration

3.2.1     Programme 1 provides strategic leadership, management and corporate services to Parliament, and comprises the following sub-programmes: Executive Authority, Office of the Secretary, and Corporate and Support Services.

Parliamentary Service	Indicator	Mid-Year target	Mid-Year Performance	Variance	Status	Reasons for Variance/ Mitigation
Digital service	% Member satisfaction	74%	90,21%	+16,21%	Achieved	_____
Facilities management service	% Member satisfaction	60%	80,18%	+20,18%	Achieved	______

            Table 2: Programme 1 performance information (Source: Parliament of the RSA)

3.2.2     According to the table above, sub-programmes Digital Services and Facilities Management Service exceeded their targets by 16.21 per cent, and 20,18 per cent respectively. Key performance trends under this programme are captured in paragraphs 3.2.3 to 3.2.18 below.

 

Information Communication Technology (ICT)   

3.2.3     The ICT division is undergoing organisational re-alignment and the ICT operating model is under development. The operating model will provide business analysis and business process mapping services for the implementation of technology solutions.

3.2.4     In the period under review, demonstration and design sessions were held with the NA Table to demonstrate the current capability in respect of the house resolutions system. The NA Table provided its high level process requirements and expectations of such a system. Their recommendations were being implemented. Similar engagements will take place with the NCOP Table and committees.

3.2.5     The following progress has been made in respect of the mapping of business requirements and processes:

• the Core Business Support team was engaged on the process for dealing with petitions in July 2021;
• the first draft of the petitions process was developed by 30 September 2021;
• the assessment of the internal development capacity and approach was completed by 30 September 2021; and
• planning and analysis phase has commenced and was due for completion by 31 October 2021.

 

3.2.6     The ERP Cloud Pilot feasibility report was completed and endorsed by the acting Secretary to Parliament, and scoping sessions were held with stakeholders. The following outcomes were reported for the period under review:

-           completion of the gift shop/ERP Interface;

-           completion of the automation of catering POS Debit Notes accounting in the ERP; and

-           provision of technical and functional support on the ERP is ongoing.

 

3.2.7     The ICT unit has also reported the following interventions/successes:

-           the ongoing upkeep and support of ICT infrastructure;

-           99,9 per cent average availability of the network and key systems;

-           Parliament Precinct Multi-Operator Cellular Signal Improvement initiative being in progress and on track for completion by 31 December 2021;

-           the life cycle management of institutional laptops being in progress, and the initiation of the process to procure computer end-user equipment for the 2021/22 cycle;

-           acquisition and distribution of 201 new mobile devices for parliamentarians; and

-           expansion of hybrid committee meeting capabilities through a project to refurbish two additional committee rooms, which commenced in the third quarter.

 

 

Facilities Management

3.2.8     The following were among the facilities management-related successes/projects:

-           the Catering Section recovered its cost on stock, and adjusted its service offering in line with COVID-19 protocols;

-           the Safety, Health and Environment (SHE) Unit monitored and assessed contractor compliance and adherence to the Occupational Health and Safety Act (No 85 of 1993), Construction regulations, COVID-19 regulations and all other relevant legislation; and

-           measures were put in place for the return of parliamentarians and certain employees to the precinct.

 

Parliamentary Communications Services

3.2.9     The work of parliamentary committees was communicated and supported through news items, info alerts, the publication of live reads, and the provision of stakeholder management, media liaison and branding support.

3.2.10   Audience reach was maximized through the recording of podcasts in support of oversight and accountability. Topics that were covered including the court judgement on the Public Protector of South Africa’s challenge to the Rules of the NA.

3.2.11   Communication support to create awareness of the parliamentary programme was provided to the NCOP and NA, including in respect of the election of a new Speaker to the NA.

 

Human Resource Management

3.2.12   The institution reported the following achievements under the Succession Planning Programme: potential successors were recommended and approved for a procedural officer (Questions) in the NA; and the chief editor in the Bills Office. Development plans outlining interventions were developed for the input of identified potential successors and their managers. These were agreed to, after which terms and conditions were drafted in consultation with Legal and Constitutional Development Section. The candidates signed the agreement and their placement was effective from 1 October 2021.

3.2.13   Twenty-one additional graduate trainees were appointed in terms of the recruitment and selection process. By the end of the period under review the number of graduates stood at 33.

3.2.14   In respect of the employee development programme, the acting Secretary to Parliament has been provided with a recommendation regarding the online learning system.

3.2.15   As far as the organisational realignment project is concerned, design proposals were completed and submitted for approval. The second phase of the process is underway and it includes the micro-analysis and design of business operating models, processes and positional structures that will enable the macro functional design. Final designs have been completed for the Registrar of Members Interest - Office of the Integrity Commissioner; Risk and Compliance; and Strategy Management. Parliament’s in-house team and the external service provider have been working in parallel. The external service provider was in the process of peer reviewing the analysis and design work for the functions that were already at an advanced stage. All the structural redesigns are anticipated to have been completed by 31 March 2022.

3.2.16   A service level agreement has been signed with a service provider to measure employee engagement levels through a survey. Two surveys will be conducted, one in November 2021 and a second in March 2022.

3.2.17   The institution reported five resignations in the period under review. These affected the Treasury Advice Office, the Parliamentary Budget Office (PBO), the Committees Section, the Knowledge and Information Services division, and Members Support Services division. Committees, and Members Support Services.

3.2.18   The implementation of the voluntary early retirement dispensation (VERD) process is one of the ways in which the administration proposes to manage compensation for employees over the MTEF, and in light constrained economic environment. The VERD for parliamentary officials was approved in February 2021. A number of engagements with the National Treasury have since taken place to determine an implementation plan. Implementation is scheduled for 31 March 2022. The Executive Authority approved the request for funding from the National Treasury.

 

Programme 2: Legislation and Oversight

3.2.19   Programme 2 provides for support services for the effective functioning of the National Assembly (NA) and the National Council of Provinces (NCOP) including procedural, legal and content advice; information services and record keeping; and secretarial and support services for the houses and their committees. The programme covers the core business of Parliament and focusses on the outputs, activities and inputs related to legislation and oversight functions.

3.2.20   The programme comprises the following sub-programmes: National Assembly (House; Committees); National Council of Provinces (House; Committees); Public Participation and External Relations; Shared Services; Sectoral Parliaments and Joint Business.

3.2.21   According to the table below, all targets under this programme were exceeded. Key performance trends under this programme are captured in paragraphs 3.2.22 to 3.2.28 below.

Parliamentary Service	Indicator	Mid-Year target	Mid-Year Performance	Variance	Status	Reasons for Variance/ Mitigation
Programming Service	Number of annual parliamentary frameworks adopted	0	n/a	n/a	Achieved	n/a
	Number of NA programmes adopted	1	1	0	Achieved	n/a
	Number of NCOP programmes adopted	1	1	0	Achieved	n/a
Capacity Building Service	% Member satisfaction	65%	74.25%	+9,25%	Achieved
Research service	% % Member satisfaction Member satisfaction	70	85,55%	15,55 %
Content advice service	% Member satisfaction	70	85,59%	15.59%%
Procedural advice service	% Member satisfaction	70	80,21%	10.21%
Legal advice service	% Member satisfaction	65	79,85%	14.85%
Committee support service	% Member satisfaction	70	88,72%	18.72%
Public Participation Service	% Member satisfaction	60	78.41	18.41

 

 

 

 

 

 

            Table 3: Programme 2 performance information (Source: Parliament of the RSA)

 

Plenary programming

3.2.22   Programmes are an essential tool in facilitating the smooth coordination of activities of the NCOP, NA, provincial legislatures and South African Local Government Association (SALGA). The NA and the NCOP programmes outline activities of parliamentary committees, houses and other fora in which the NA and the NCOP participate. Special attention is given to the processing of legislation. The NCOP and NA adopted their programmes during the 1st quarter.

 

Capacity Building

3.2.23   All divisions involved with the capacity building of parliamentarians agreed to a clear strategic orientation for the sixth Parliament. The approach has shifted from support for individual parliamentarians to supporting holistic and customised group programmes centralised under Parliament’s Learning Institute. The programmes are designed to develop capacity that will assist with delivering on the mandate of Parliament.

3.2.24   The Speakers Forum approved the establishment of the Parliamentary Institute for the Legislative Sector which will drive sector-wide capacity building through training, development and research. The conceptualisation, research and scoping of the institute was completed in the period under review, and the Speakers Forum has approved a governance and funding model.

3.2.25   In light of the above the Parliamentary Service will:

• ensure that programme development is based on continuous needs assessments;
• improve coordination and cooperation between role-players in the capacity-building sphere so as to enable seamless and holistic services;
• integrate individual capacity-building programmes under a customised curriculum;
• centralise resources and funding to improve overall programme impact;
• initiate processes measuring the usefulness of programmes;
• consider the competencies required to function efficiently and effectively in Parliament; and
• provide on-going development of the specialist skills required by chairpersons and party whips.

 

 

Legislation and Oversight

3.2.26   Several initiatives were implemented to ensure quality information services. These included:

-           the development of a draft research plan in support of the institutional oversight plan, which is now under discussion;

-           the draft proposals on organisational realignment of knowledge and content support reaching 90% completion;

-           memoranda of understanding drafted with Statistics South Africa (StatsSA), Council for Scientific and Industrial Research (CSIR), Academy of Science of South Africa (ASSAf), and engagements to be re-visited with Human Sciences Research Council (HSRC), Public Affairs Research Institute (PARI) and University of Venda (UNIVEN), as part of efforts to improve collaboration with partners and third party/external stake-holders;

-           efforts to improve the information dissemination process, ensuring improved packaging, information simplicity, and ease of use of information products, including training of relevant officials were ongoing;

-           standard operating procedures were reviewed and revised to introduce institutional standards and quality management processes; and

-           discussions were initiated to establish a research advisory panel to guide and advise information services.

1. In terms of Committee Support, services delivered in the period under review, included:

-           the timeous production of 88 Announcements, Tabling and Committee report (ATC) publications;

-           the provision of content and logistical support to committees including to 29 oversight visits undertaken;

-           the production 30 committee reports on bills that were before the NA and the NCOP;

-           the production of 342 committee minutes within the prescribed 3 days, and 82 committee reports within the standard 8 days;

-           the completion and provision of 18 legal opinions to committees, and 23 legal opinions provided to the administration;

-           the drafting of 17 contracts, 5 private members’ bills and 2 committee bills; and

-           attending to 82 pending litigation matters.

 

3.2.28   In terms of public participation, the institution reported several activities undertaken to promote public access to and participation in the activities of Parliament. These included the following:

-           public hearings in support of the processing of the Expropriation bill;     and

-           28 information sessions/ educational workshops in support of the Expropriation Bill public hearings in the Northern Cape and Free State province.

 

Programme 3:   Associated Services and Transfers

3.2.29   Programme 3 provides for facilities and financial support to political parties including leadership, administrative and constituency support. It also provides for transfer payments to entities in Parliament. It comprises the following sub-programmes: Members’ Facilities, Leadership, Administrative and Constituency support to political parties; Transfer to the PBO, Legislative Sector Support, and Office Supporting ISDs. Performance in respect of this programme was not measured.

 

4.         Financial Performance in the period under review

It should be noted that, unlike in its 2021/22 Quarter 1 Report, the institution reported on its financial performance along the old five-programme structure in the 2021/22 Mid-Year report. During the interrogation of the tabled reports, the Committee voiced their dissatisfaction about this inconsistency. The institution subsequently submitted the financial information along the revised programme structure, and this is what is reported on under this section.

 

 

 

4.1       Overview

4.1.1     Table 4 below, illustrates that by the end of the period under review, Parliament had spent R1,188 billion or 45 per cent of its annual budget of R2,656 billion. Indications are that the institution will underspend its annual budget by 14 per cent or R13,911 million. The under-spending will be in relation to medical aid contributions to the Parmed Medical Aid Scheme. In addition, it is anticipated that the institution will overspend on its Direct Charges.

Programmes	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Administration	143,823	100	145,739	95	289,562	42	697,655
Core Business	154,890	99	152,601	99	307,176	42	739,703
Associated Services	173,423	95	184,763	107	349,656	47	747,643
Sub Total	472,136	98	483,103	100	946,394	43	2,185,001
Direct Charges	117,928	103	120,615	102	242,418	51	471,710
TOTAL	590,064	99	603,718	101	1,188,812	45	2,656,711

            Table 4: Expenditure across programmes (Source: Parliament of the RSA)

 

4.1.2     Table 5 below details spending across economic classification. Spending on compensation of members against the annual budget stood at 51 per cent by the end of the period under review, and indications are that there will be an overspending of 3 per cent or R14,103 million at 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	%
Compensation of Members	121,803	103	120,615	102	242,418	51	471,710
Compensation of employees	272,513	100	272,085	99	544,598	44	1,235,240
Goods & Services (APP)	46,501	99	46,403	82	92,904	32	293,542
Goods & Services (Members Entitlements)	20,596	100	26,767	130	47,363	41	116,584
Transfers	119,728	93	134,719	105	254,447	50	513,031
Capital Expenditure	3,953	100	3,129	110	7,082	27	26,604
TOTAL	585,094	99	603,718	101	1,188,812	45	2,656,711

Table 5: Spending across economic classification (Source: Parliament of the RSA)

4.1.3     Spending on compensation of employees against the annual budget stood at 44 per cent for the mid-year and indications are that the budget will be spent in full by the end of the financial year.

4.1.4     Spending on goods and services (APP and Members’ entitlements) against the annual budget stood at 41 per cent by the end of the period under review, and indications are that there will be an underspending of R13,911 million at the end of the financial year.

4.1.5     Spending on capital expenditure is 110 per cent for the second quarter and 27 percent for the first half of the year, and indications are that the entire budget will have been spent by the end of the financial year. Spending on transfers against the annual budget is 26 per cent for the second quarter and 50 percent for the mid-year, with it being anticipated that the entire budget will be spent by the end of the financial year.

 

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     According to Table 6 below, expenditure in relation to this programme stood at R289,562 million or 42 per cent of the annual allocation by the end of the period under review.

 

 

Divisions	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
Executive Authority	16,635	100	19,279	93	35,914	41	88,064
Office of the Secretary	1,936	100	1,977	100	3,913	47	8,288
Corporate and Support Services	125,252	100	124,483	95	249,735	42	601,303
TOTAL	143,823	100	145,739	95	289,562	42	697,655

     Table 6: Programme 1 - Expenditure (Source: Parliament of the RSA)

4.2.2     By the end of the period under review, spending on compensation of employees under this programme stood at 42 per cent or R232,716 million of the R550,869 million annual budget.

4.2.3     The spending on goods and services (APP) stood at 38 per cent or R50,166 million of the annual budget of R130,751 million.

4.2.4     Capital expenditure stood at 42 per cent or R6,680 million of the annual budget of R16,035 million by the end of the period under review.

 

Programme 2:   Legislation and Oversight

4.2.5     Table 7 below, reflects that spending under this programme stood at 42 per cent of the annual budget of R739,703 million at the end of the period under review.

 

 

 

 

 

 

 

Divisions	Total spending						Annual Budget R’000
	Quarter 1		Quarter 2		Year to Date
	Amount R’000	%	Amount R’000	%	Amount R’000	%
National Assembly	10,538	100	10,513	100	21,051	46	45,946
National Council of Provinces	8,367	96	8,900	103	17,267	35	49,149
Public Participation and Shared Services	130,554	100	127,671	98	258,225	43	598,438
Sectoral Parliaments	5,116	100	5,517	108	10,633	23	46,170
TOTALS	154,575	99	152,601	99	307,176	42	739,703

Table 7: Programme 2 Expenditure (Source: Parliament of the RSA)

4.2.6     In respect of compensation of employees, 46 per cent or R264,360 million of the annual budget had been spent by the end of the period under review.

4.2.7     The expenditure on goods and services (APP) stood at 26 per cent or R42, 414 million of the annual budget of R161,615 million.

4.2.8     In respect capital expenditure, 5 per cent or R402 000 of the annual budget had been spent by the end of the period under review.

 

Programme 3: Associated Services

4.2.9     Table 8 below reflects that 47 per cent or R349,656 million of the annual budget under the programme had been spent by the end of the period under review. 

4.2.10   Furthermore, spending on Members’ Facilities (which relates to Members’ entitlements in terms of the Members Handbook and medical aid contributions for former Members of Parliament and Provincial legislatures) stood at 41 per cent or R88.453 million by the end of the period under review. It is anticipated that this sub-programme will underspend by R13, 911 million as a result of a decrease in membership of the fund.

4.2.11   The total transfers to political parties represented in Parliament (Constituency, Party Administrative and Party Leadership Allowances) stood at R254, 447 million or 50 per cent year of the annual budget by the end of the period under review.

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	41,764	100	46,689	112	88,453	41	218,379
Transfer to Political Party Allowances	119,728	93	134,719	105	254,447	50	513,031
Transfer: Parliamentary Budget Office	3,401	100	3,355	99	6,756	42	16,233
TOTALS	164,893	95	184,763	107	349,656	47	747,643

Table 8: Programme 3 Expenditure (Source: Parliament of the RSA)

4.2.12   By the end of the period under review, 41 per cent or R47,522 million of the annual budget for compensation of employees had been spent. This includes contributions to the Parmed Medical Aid Scheme.

4.2.13   Members’ entitlement utilisation is dependent on the use of travel entitlements. By the end of the period under review, spending on this item stood at 41 per cent or R47, 636 million of the total annual budget.

4.2.14   There was no spending on capital projects hence the annual budget of R1,905 million remained the same.

 

Direct Charges

4.2.15   Table 9 reflects that spending on Members’ remuneration stood at R242, 418 million or 51 per cent of the annual budget of R471,710 million by the end of the period under review. It is anticipated that there will be an overspending of 3 per cent or R14,103 million at the end of the financial year.

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	121,803	103	120 615	102	242 418	51	471,710
TOTAL	121,803	103	120 615	102	242 418	51	471,710

           Table 9: Direct Charges - Members’ Remuneration (Source: Parliament of the RSA)

 

Part C

5.         Observations

5.1       Public Participation

5.1.1     The Committee notes efforts to increase public participation and access to the business of Parliament, however we remain concerned that progress in this regards appears to be slow. Of concern is that not enough is being done to ensure information about the work of Parliament reaches as many citizens as possible despite this being one of the two strategic objectives of the Sixth Parliament.

5.1.2     The Committee notes with concern the written report regarding the recently acquired broadcast studio, specifically the fact that the studio - which will require approximately R30 million in funding over the next three years – is unfunded. In light of Parliament’s budgetary constraints and the slow pace of resolving the challenges, the Committee is concerned that it may not be possible to make use of this facility – and reap the benefits - as envisaged by the 6th Parliament.

5.1.3     Per the report, the studio relies on freelancers secured for 30 non-consecutive days and used when required. The PCS division indicates that a fully capacitated team and a fully-fledged final control centre are required to steer this specialised responsibility and to enhance the work of Parliament even more.

           

 

 

5.2       Organisational re-alignment

5.2.1     Parliament has reported that the organisational re-alignment project was progressing as planned, and that phase two was underway. The Committee has to date not been briefed in detail on what the project entails or its implementation plan.

 

5.3       Filling of critical vacancies

5.3.1     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 – Secretary to Parliament, Chief Financial Officer, Chief Audit Executive – were still vacant, with no satisfactory explanation to justify the long delay in filling them. Of concern is that in the period under review, the institution reported resignations in the PBO as well as the Treasury Advice Office. Given the importance of these offices, the slow filling of posts is of major concern.

 

5.4       Performance management in respect of Programme 3

5.4.1     The Committee remains concerned that there are no performance indicators under this programme especially given the serious challenges experienced as far as members support services. While the Committee has noted the explanation that matters provided for under this programme relate to ‘inputs’, and not items against which Parliament was required perform, it is unconvinced that performance could not be measured.

 

5.5       Employer-employee relations

5.5.1     The Committee has noted the low staff turnover which was previously ascribed to a “healthy and conducive work environment underpinned by good employee value propositions”. It has noted that employee engagement levels are being measured through a survey. The Committee is also aware that in the past there had been poor labour relations which were to be addressed through a “harmonisation” project between organised labour and the employer.

 

 

 

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       Public Participation

6.1.1     The Committee has noted that the parliamentary television studio could, once it becomes a fully-fledged and licenced television station, fund itself through revenue generation or donations, and must therefore be provided with a plan on how revenue may be generated over the next three years. The Committee should be provided with the project plan for securing licencing through Independent Communications Authority of South Africa (ICASA), and quarterly updates on progress made in this regard. In addition, the Committee should be provided with information detailing how income/funding could be generated.

6.1.2     The Committee cautions against over-reliance on social and broadcast media for the dissemination of information related to the business of Parliament. Each quarterly report should include well-supported progress reports on how access to Parliament and its business will be increased to ensure that most citizens are able to have their voices heard.

 

6.2       Organisational re-alignment

6.2.1     The Committee is concerned about the apparent slow implementation of the organisational re-alignment project, and should receive a detailed briefing/report on it, as well as reasons for the apparent delay in finalising it. We have also noted that some vacant posts cannot be filled until this process has been finalised. This places further urgency on ensuring that the process is finalised.

 

6.3       Filling of critical vacancies

6.3.1     The Committee must be provided with a detailed written report on the slow filling of all vacancies, and specifically those in the senior management of the institution. The reports should detail all actions taken, and obstacles to fill the posts.

 

6.4       Performance management in respect of Programme 3

6.4.1     The Committee should be provided with a detailed clarification of how the performance of those responsible for delivering/facilitating the services that fall under Programme 3 will be measured.

 

6.5       Employer-employee relations

6.5.1     The Committee welcomes improvements to employer-employee relations, and should be provided with an update on the harmonisation project, and the response and outcome of the employee engagement level survey. The report should include the costs associated with each intervention.

 

Report to be considered.