Report-Back by Workgroups

Meeting report

STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA)
24 June 2003
REPORT-BACK BY WORKGROUPS

Chairperson: Mr F Beukman (NNP)

SUMMARY
The Committee heard a report back from Workgroup 2 by Mr D. Gumede, who also briefed them on the categorisation of reports. Mr B Kannemeyer gave a briefing on the following day's hearing with the Department of Justice and Constitutional Development. The Chairperson informed them of the issuing of a new work programme for August / September. Mr Smith gave some input on the progress of study tour deliberations. There was tabling of correspondence, and the adoption of the previous minutes.

MINUTES
Work Group Report-backs
Second Workgroup
Mr D Gumede (ANC) reported that his group had dealt with a number of reports:

South African Police Services (SAPS)
The SAPS report had been finalised, and would be tabled at the next meeting.

South African Revenue Services (SARS)
The SARS report and Public Works report was scheduled for the second or third week in the next session.

Department of Public Works
The Public Works report was scheduled for the second or third week in the next session.

National Treasury Report
The National Treasury report for Foreign Affairs, the Market Theatre, and Natal Museum drafts were ready for submission at the first meeting, in the next session.

Categorisation of Reports

The Agricultural Research Council
This report had been categorised as a disclaimer.

Servcon
Here, there were serious concerns regarding the state of affairs, and the manner in which Servcon was being managed. This report was classified in Category B. Salaries and amounts paid to advisers were also examined.

ESKOM
The ESKOM Report had been classified in Category B.

Department of Transport
Due to negligence and non-compliance to the PFMA, the group felt there should be hearings into Transport. Lots of miscellaneous reports falling under that Department had not been submitted.

National Skills Authority
The National Skills Authority Report was qualified, since its income was uncertain, and the records did not seem to reflect what was actually being received. It was possible that more was being spent than was reflected. This report was classified in Category B.

NTSIKA
The NTSIKA Report was classified into Category C. There were a number of concerns which might be looked into.

Mr Vezi (IFP) made the correction that, although he had originally tabled NTSIKA's report as a Category C report before the Cluster meeting, after some discussion, it was decided to classify it as a Category B report.

The Compensation Fund
The Compensation Fund had Treasury replies. While the group welcomed the actions taken by the entity, they felt it was not adequate. They would like to obtain additional information on their strategy, and the effectiveness thereof, and would await the further report from the Auditor-General. They would write to the Compensation Fund, requesting further clarity.

Briefing on Justice and Constitutional Development Hearing
Mr Bruce Kannemeyer addressed the Committee on the following day's hearings into the Department of Justice and Constitutional Development.

He reported that his Cluster had had their first engagement with the auditors in the previous week, where they had raised certain questions. The auditors had reported back to the Cluster on the morning of 24 June. Based on those engagements with the auditors, the Cluster had arrived at an approach to the hearing.

The group's assessment was that within the Department, there were a number of issues which had been posing problems for a considerable length of time. It seemed that the Department had a number of plans and projects they wished to implement. However, the Cluster was not convinced that the Department was succeeding in putting those plans into practice. The Cluster had set the following objectives for the hearing:

- to determine whether acceptable progress had been made since the last hearing, in terms of
some of the critical areas identified

- to determine whether the Accounting Officer understood the underlying reasons for the
inadequacies in financial management

- to seek an assurance of a commitment, not only to stay with planning, but to implement those
plans, within realistic time frames. They would also seek to determine if the plans were
themselves realistic

- to deal with aspects relating to unauthorised expenditure, to determine if such expenditure was
truly unavoidable and absolutely necessary

- the examining of other general areas

They wanted the Department of Justice and Constitutional Development to realise that SCOPA was taking its work of oversight over the affairs of the Department very seriously, because of the importance of the Department, both in terms of its budget, and of the fact that it cuts across the entire country, in terms of delivering justice to the communities.

He identified the following seven focus areas for questioning:

1. The Paymaster-General Account, where the Chairperson, Francois Beukman, would be in charge of questioning.

2. Revenue and asset management would be dealt with by Mr B. Bell.

3. Suspense accounts would be allocated to Ms P. Mothogae.

4. Unauthorised expenditure had been linked to budgetary control, and would be dealt with by Mr A. Mofokeng.

5. Monies in trust, which included bail and maintenance monies, amounting R830 million. Mr V. Smith would deal with these questions.

6. The internal control and internal audit unit would be handled by Mr M. Robertson, assisted by the Chair.

7. People issues, relating to training and staff matters, would be dealt with by Mr B. Kannemeyer.

Update of Work Programme

There were some indications that the Programme Committee would issue a new programme for August / September, and the Committee would wait to receive that.

Study Tour

Mr V. Smith reported that the Whippery had indicated that in principle, they did not oppose the tour proposal. However, the dates proposed, between 1st and 10th August, were more suited to constituency work. They proposed, therefore, that they consider moving the dates to a later stage.

Tabling of Correspondence

The Chairperson raised correspondence on the Department of Public Enterprises, which would be referred to Cluster 2.

Adoption of Minutes

There were no corrections. The minutes were adopted.

Matters Arising

Under 3.12, Mr Gumede had indicated that his group would report back to the Committee in the following term. On page 7, the Chair reported that he had received correspondence from the previous Chairperson, in his capacity as secretary to the Chief Whips Forum, that they had requested a report back of what was transpiring in the Committee, to which Mr Beukman had responded.

Mr P Gerber (ANC) noted that the Committee's request for feedback from the Auditor-General with regard to the Transnet issue, had been excluded from the minutes. The Chairperson responded that a letter had been written in that regard, which should also be indicated in the minutes.

The meeting was adjourned.