Ninth Report of the Standing Committee on Public Accounts, dated 26 June 2002:
The Standing Committee on Public Accounts, having considered the Reports of the Auditor-General on the Financial Statements of Vote 11 - Department of Foreign Affairs and of the Economic Co-operation Promotion Loan Fund for the year ended 31 March 2001 [Part 4 of Department's Annual Report for 2000-01], referred to it, reports as follows:
1. Audit opinion
The Committee commends the Department for an unqualified audit opinion in respect of both the financial and compliance audits.
2. Unauthorised expenditure: R6,358 million
The Committee expresses concern at the Department's over-expenditure in respect of the main divisions of the Vote, resulting in unauthorised expenditure of R6,358 million.
The Committee notes that the over-expenditure was the result of a legal claim in respect of a pension payout (Special Functions: R1,272 million), increased involvement of executive authorities on the continent, in line with the rest of the world (Programme 1: Administration - R680 000), and the continued devaluation of the rand against major foreign currencies (Programme 2: Foreign Relations - R4,406 million).
The Committee, having considered the above reasons, recommends that Parliament approve the unauthorised expenditure of R6,358 million.
3. African Renaissance and International Co-operation Fund
The Committee notes with concern that at the time of finalisation of the Auditor-General's Report, all unexpended moneys held by, or standing to the credit of, the Economic Co-operation Promotion Loan Fund, had still not been ceded, assigned and transferred to the new African Renaissance and International Co-operation Fund, which had replaced the former in January 2001.
The Committee recommends that, since the matter is contrary to the requirements of the relevant Act, the Department effect the necessary transfer as a matter of urgency, as well as the total amounts yet to be transferred.
However, if these transfers have been effected already, the Committee recommends that the Department confirm that the matter has been dispensed with to the satisfaction of the Director-General.