Justice Resources Trust

DEPARTMENT OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT

ESTABLISHMENT OF JUSTICE RESOURCES TRUST

The main objective of the Justice Resources Trust is to provide the Masters’ of the High Court with resources, by way of funding or in kind, for the more efficient delivery of services to the fiduciary services industry and the general public.

PURPOSE

The purpose of this Memorandum is: -

1.1 To inform the Board of the exact nature of the Justice Resources Trust; and

1.2 To obtain approval for the formation and objectives of the Justice Resources Trust

SUMMARY

2.1 The idea of the Justice Resource Trust was conceived as a result of, inter alia, the significant role the Master of the High Court plays in the lives of most South Africans irrespective of colour, creed and background as well as financial institutions. The Master is also involved in the administration of deceased’s estates, trusts, insolvency’s, liquidations, estates of minors and persons with disabilities.

2.2 The main business of the Justice Resource Trust will be to obtain funding and resources from the private sector in order to supplement and satisfy the needs of the Masters’ of the High Court in South Africa in order to ensure enhanced service delivery to fiduciary services industry and the general public.

2.3 In order to undertake the above-mentioned, the Justice Resource Trust will be guided by an Advisory Board, which will be convened and constituted by the Masters’ of the High Court. The Advisory Board will identify critical resource needs and present it to the Trustees for the allocation of resources, be it cash or kind.

2.4 The proposed Justice Resource Trust will yield the following benefits:

Improved service delivery in line with the Batho Pele principles

Private sector fiduciary services practitioners will be able to participate through funding and representation on the Board of Trustees of the Justice Resource Trust

Jobs can be created

Serious consideration can be given to discriminatory legislation and the rationalisation of legislation pertaining to the administration of estates

The Justice Resource Trust will create the infrastructure and platform, which can become a powerful departure point for long-term development such as the Central fiduciary website-online communications, Probate registry (streamlining and fast tracking current processes) and a Central South African Wills Registry.

3. DISCUSSION
3.1 Background

The proposed Justice Resources Trust was borne of the following factors:

The economic significance of the Masters’ Division in re-circulating millions of rands, which become frozen in deceased and insolvent estates annually, back into the economy through the processing of such estates to finality;

Recurring bureaucratic red tape which has prevented the Masters’ Division from coping with the demands of population and economic expansion through lack of resources and revised work structures;

3.1.3 The financial harm suffered by the banking sector, trust companies, insolvency practitioners, attorneys and chartered accountants due to the fact that the Masters’ Division falls far short of private sector levels of efficiency and service delivery

3.1.4 The antiquated manual methods of accounting employed in the Masters’ Division, Guardians Fund, nationally which administers public funds in excess of R1 Billion

3.1.5 The lack of electronic infrastructure necessary to streamline work

processes and levels of service delivery;

3.1.6 Poor salary levels which have resulted in experienced personnel leaving the Masters Division for the private sector

3.1.7 Indiscriminate recruitment procedures, which do not meet the high levels of legal expertise required in the Division;

3.1.8 Critical staff shortages whereby a national workforce of 437 personnel are expected to process, from inception to conclusion, in excess of 77 000 deceased and insolvent estates and trusts manually each year. The minimum duration for finalising a deceased estate is not being less than 6 months while the majority of insolvent estates are finalised in not less than 12 to 18 months, due to inherent legal complexities

3.1.9 The continual inability of the State to recognise and address the aforementioned factors; and

3.1.10 Thousands of Black Intestates are left out in the cold.

3.2 Motivation for the Establishment of the Justice Resource Trust

3.2.1 The Justice Resources Trust constitutes a mechanism whereby private sector interest groups are able to provide funding, human resources, technological assistance and private sector expertise to the Masters’ Division without having to compromise the integrity and statutory independence of the Masters’ Division or the Department of Justice and Constitutional Development;

3.2.2 By virtue of the proposal, the Justice Resources Trust seeks to provide assistance to the Masters’ Division similar to that which Business Against Crime initiative contributes to the criminal justice system

3.2.3 By means of a duly registered trust registered in terms of the Trust Property Control Act 57 of 1988 the Justice Resources Trust will act as a conduit for donations from well wishers in the private sector, to be administered by trustees consisting primarily of financial specialists with a banking background, academics and industry representatives allied to the Masters’ Division;

3.2.4 The Justice Resources Trust seeks to address the efficiency, transparency, accountability and accessibility of the Masters’ Division through technology solutions

Terms of Reference for the proposed Justice Resource Trust

The Justice Resources Trust will:

3.3.1 Obviate the requirement of having the State Tender Board approve of cash donations, as it will not involve donations of such nature;

Utilise funds at its disposal to employ computer technicians, programmers and legal staff in the Masters’ Division subject to the Public Service staff codes and to monitor the progress of such staff through regular inspections;

3.3.3 Assist in providing innovative solutions to bottlenecks in the administration of the Masters’ Division

3.3.4 Conduct statistical and other research to ensure that the Masters’ Division functions optimally;

Address the issue of encompassing Black Intestate Estates meaningfully through the employment of social workers, interpreters;

Enhance the image of the Masters’ Division and promote public awareness of the services offered;

3.3.7 Administer and to invest all funds donated to it judiciously and more efficiently than is capable of any government department;

3.3.8 Be guided by an Advisory Committee consisting of the Masters’ of the High Court

3.3.9 Lend anonymity to all donations received so as not to compromise the integrity and impartiality of Masters’ Division personnel

3.3.10 Constantly upgrade the technology within the Masters’ Division

3.3.11 Fund the development of specialised hardware and software programmes to facilitate the speedy processing of Guardians Fund payments, calculation of estate duty and the like;

3.3.12 Provide and promote high levels of management skills within the Division;

3.3.13 Increase service delivery to unprecedented levels;

3.3.14 Apply part of its funding to keeping pace with and importing administrative procedures from overseas countries;

3.3.15 Provide technology to monitor all work statistics within the Division;

3.3.16 Conduct overseas research to rationalise local legislation to achieve horizontal equity in South Africa, in tandem with international practice

3.3.17 Provide electronic infrastructure to facilitate the Cross Border Insolvency Act; and

3.3.18 Enable the Masters’ Office to render enhanced levels of service delivery to widows, orphans, mentally disabled persons, creditors, and heirs irrespective of colour, creed and background across the length and breadth of the Country.

3.4 Organisational and personnel implications

3.4.1 In respect of the Justice Resources Trust, the issue of human resources will only apply to the trustees thereof. The infrastructure, equipment, materials and financials will be provided by the Administrative Trustee to be appointed and such Trustee will be a representative of the Private Sector.

3.4.2 In respect of the Masters’ of the High Court, the only resources required would be the respective Masters’ of the High Court who will convene and constitute the Advisory Board. Their existing infrastructure will be used in support of their activities as members of the Advisory Board.

3.5 Financial implications

3.5.1 It is not possible to present an accurate financial budget at this stage. Once the concept of the Justice Resource Trust has been approved by all interested parties, it will be necessary to present the business case to institutions such as

Association of Trust Companies in South Africa

Law Society

Chartered Accountant of South Africa

Afrikaans Handels Instituut

South African Chamber of Business

Association of Insolvent Practitioners in South Africa

Other industry players

A well-known merchant bank indicated that it was keen to provide financial assistance towards the end of last year. The interested party discussed a figure of R20 million.

3.6 Communication implications

In order to ensure wide support and commitment to the Justice Resource Trust, a comprehensive communications strategy needs to be developed, the purpose of which will be to popularise the Trust and its functions and to ensure Private and Public Sector partnership.

3.7 Constitutional implications

The proposed establishment of the Trust is consistent with the Constitution in that it ensures access to Justice and aims to promote fundamental human rights of people.

3.8 RESPONSES OF OTHER DIVISIONS/ COMMITTEES/ BODIES CONSULTED

Discussions were held with the Masters’ of High Court who are in support of the establishment of the Justice Resources Trust as well as with some organisations in the Private sector such as the merchant bank that have already indicated the possibility of financial support. This memorandum has already been tabled with EXCO and members have approved of the establishment of the Trust.

4. RECOMENDATION

In the light of the afore-mentioned, it is recommended that the Board approve of the formation and objectives of the proposed Justice Resources Trust.

CONTACT PERSON

Mr M Tshishonga

Deputy Director-General

(012) 3151218

DEPUTY DIRECTOR GENERAL: JUSTICE AND CONSTITUIONAL DEVELOPMENT

DIRECTOR-GENERAL: JUSTICE AND CONSTITUIONAL DEVELOPMENT

MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT

CHAIRPERSON OF THE JUSTICE BOARD

DR PM MADUNA