ATC240909: Report of the Standing Committee on the Auditor-General on the Draft Notice on the Determination of Remuneration of the Auditor-General, dated 6 September 2024

Standing Committee on Auditor General

Report of the Standing Committee on the Auditor-General on the Draft Notice on the Determination of Remuneration of the Auditor-General, dated 6 September 2024

The Standing Committee on the Auditor-General having considered the Draft Notice on the Determination of Remuneration of the Auditor-General for the period 2023/24 and 2024/25, reports as follows:

1.         Background

1.1       The heads of institutions supporting democracy (ISDs) are remunerated in terms of the Determination of Remuneration of Office-Bearers of Independent Constitutional Institutions Laws Amendment Act, No. 22 of 2014. Furthermore, section 7(1) of the Public Audit Act, No 25 of 2004 (the PAA) provides that the Auditor-General is entitled to an annual salary and such allowances, or benefits as determined by the President; from time to time, by notice in the Gazette, and approved by the National Assembly.

1.2       The PAA prescribes the process to be followed when determining an auditor-general’s salary. Section 7(1)(a) requires that when determining the salary, allowances and benefits, the President must consider the recommendations of the Independent Commission for the Remuneration of Public Office-Bearers (the Commission). In deciding its recommendations to the President, the Commission considers recommendations and advice by the Remuneration Committee established in terms of section 5(2)(bA) of the PAA. The Remuneration Committee comprises individuals suitably qualified and experienced in human resource practices, including remuneration practices. The President taking into consideration the Commission’s recommendations, must make a determination on the matter and issue a notice in the Government Gazette. The notice is submitted it to the National Assembly for approval before the salary determination is published.

1.3       Accordingly, the President wrote to the National Assembly on 28 May 2024 notifying it that he had determined the salaries and allowances of members of the Independent Constitutional Institutions. The Speaker of the National Assembly referred the matter to the Standing Committee on the Auditor-General (SCoAG) on 9 July 2024 for consideration and report.

 

2.         Determination by the President

2.1       The President, having considered the recommendations of the Commission, has notified Parliament of the following:

2.1.1     that, for 2023/24, the Commission recommended a 3% salary increment for all public office bearers, including members of the independent constitutional institutions;

2.1.2     that, for 2024/25, the Commission recommended a 2,5% salary increment for all public office bearers, including members of the independent constitutional institutions; and

2.1.3     that in making the determination, the Commission had considered the following criteria:

-           the role, status, duties, functions and responsibilities of the office bearers concerned;

-           the affordability of different levels of remuneration of public office bearers;

-           current principles and levels of remuneration, particularly in respect of organs of state;

-           inflation;

-           available resources of the State; and

-           public service remuneration levels.

2.2       The President indicated that, having considered the above, he intended determining a 3% salary increment for members of the independent constitutional institutions for the 2023/2024 financial year, and a 2,5% salary increment for the 2024/2025 financial year.

2.3       The President further notified the National Assembly that, in respect of the Auditor-General, the increases amounted to an annual salary of R5 551 713.00 in 2023/24, and R5 690 506.00 in 2024/25.

 

 

 

3.         Recommendation

3.1       The SCoAG considered the notice by the President on 6 September 2024. The ScoAG notes that the detail of the determination of the remuneration is the responsibility of the Commission taking into consideration the advice of the Remuneration Committee.

3.2       The SCoAG having deliberated on the matter, recommends that the National Assembly approves the President’s determination in relation to the 2023/24 and 2024/25 remuneration of the Auditor-General.

 

Report to be considered.