Eleventh Report of the Standing Committee on Public Accounts, dated 26 June 2002:

The Standing Committee on Public Accounts, having attended the APAC Conference in Kimberley (Northern Cape), reports as follows:

1. Introduction

The Committee attended the fourth Annual Conference of the Association of Public Accounts Committees (APAC) in Kimberley from 26 to 29 May 2002. The conference theme was "Making Accountability Count in the African Century".

2. Composition of delegation

The multi-party delegation consisted of Mr F Beukman (Chairperson of the Committee), Mr V Smith (ANC), Mr B Kannemeyer (ANC), Mr B Nair (ANC), Mr P Gerber (ANC), Mr N Masithela (ANC), Ms K Mothoagae (ANC), Mr M Lowe (DP), Mr N Bruce (DP), Mr E Molefe (Committee Secretary) and Mr K Dlamini (Committee Secretary).

3. Background

The APAC was formed in 1997 by all provincial public accounts committees and the national Standing Committee on Public Accounts (the Committee) to consolidate, harmonise and find best practice models of oversight and accountability within the public accounts committees fraternity. Its major objective is to improve the quality and performance of public accounts committees in South Africa and to improve the capacity of individual members and staff of the committees to function more effectively.

The 2002 APAC Conference was attended by 250 delegates, comprising:

* All nine South African provincial public accounts committees

* The Committee

* Nine SADC countries: Angola, Botswana, Democratic Republic of Congo, Namibia, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe

* A representative of the Australasian Council of Public Accounts Committees (ACPAC) and the Auditors-General of South Africa, Zambia and Tanzania

4. Themes discussed at conference

(a) Oversight and Accountability in a Multi-Party Democracy - an International Experience

The following speakers contributed in panel discussions:

Mr Peter Loney, ACPAC Australia
Mr Z Mkabile, Eastern Cape public accounts committee
Mr J de Waal, Namibia public accounts committee

(b) Oversight and Accountability - a Diverse Southern African Experience

The following speakers contributed in panel discussions:

Mr J Makgatho, Eastern Cape public accounts committee
Mr A Vincent, Seychelles public accounts committee
Mr R Tshipinare, Botswana public accounts committee
Mr J Kasongo, Zambian public accounts committee

(c) Co-Operative Governance and Accountability

The following speakers contributed in panel discussions:

Father S Mkhatshwa, Chairperson: SALGA
Mr S Fakie, Auditor-General of South Africa
Mr F Beukman: Committee Chairperson

Mr Beukman briefed the Conference on:

* The conduct of elected officials

* The role of the Committee in the South African context

* Capacity and support to public accounts committees

* Streamlining of Committee business practices

* Enactment of Committee legislation

5. Problems identified by Conference

(a) Oversight and Accountability in a Multi-Party Democracy - an International Experience

* Debates on policy issues invariably become divisive and interfere with the work of public accounts committees

* There are sometimes tensions around the selection of chairpersons of public accounts committees

* Lack of continuity in membership of a committee hampers its efficiency and effectiveness

(b) Oversight and Accountability in a Multi-Party Democracy - a diverse Southern African Experience

* There is lack of co-ordination between public accounts committees and portfolio committees

* Who accounts to public accounts committees - the Minister/MEC or the Director-General?

* Weak follow-up (or lack therof) on recommendations in resolutions passed by the House

* Under-resourced and under-paid staff

* No clear understanding of separation of powers between public accounts committees, Ministers/MECs, the National Treasury and Parliament.

(c) Co-operative Governance and Accountability

* There is no clear separation of powers at local government level between the Executive Committee and the Councils

* Some MECs failed to comply with the provisions of the Local Government: Municipal Systems Act, 2000, requiring them to monitor and submit reports on moneys transferred to local government, with the result that there is no proper accountability

* There are delays in providing conditional grants

6. Resolutions adopted at Conference

In addressing these problems, the APAC Conference resolved that to improve co-operative governance and accountability throughout Southern Africa and Africa, APAC must:

(a) Continue with the process of building and strengthening the capacity of public accounts committees by requesting all legislatures to fix the term of office of public accounts committee members (in the interest of continuity, this must be uninterrupted for the duration of each Parliament)

(b) Introduce a balanced scorecard system for APAC and Departments

(c) Strengthen the relationship between public accounts committees and portfolio committees to ensure better oversight

(d) Encourage standardisation of public accounts committee resolutions

(e) Provide skills for public accounts committee staff and recommend better remuneration for them

(f) Develop guidelines for all public accounts committees for standardised approaches and practices

(g) Encourage members to develop relationships with other public accounts committees, the Executive and the Treasury

(h) Align its projects with those of NEPAD

(i) Urgently constitute the Southern African Development Countries Public Accounts Commitees

(j) Introduce a research project identifying solutions for common problems experienced by APAC within the SADC

(k) Improve co-operative governance and accountability at local government level by:

* Requesting Parliament to expedite the enactment of the Municipal Finance Management Bill

* Recommending a clear separation of powers between the Executive Committee and the Council

* Striving for improvement of financial management capacity in local government

7. Formation of Southern African Development Countries Public Accounts Committees (SADCOPAC)

The SADC countries (Angola, Botswana, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe) identified the need to work together, harmonise and standardise the work of public accounts committees in the region, and agreed to the formation of SADCOPAC.

To this end it was agreed that:

(a) APAC South Africa be the Secretariat until the formation of SADCOPAC.

(b) A steering committee be set up, comprising two representatives from the public accounts committees of each member country.

(c) The terms of reference of the steering committee is to work towards the launching conference of SADCOPAC.

(d) The steering committee is mandated to mobilise other SADC countries, who were not present, to subscribe to the principles as resolved and to become part of SADCOPAC.

(e) Members pass resolutions at their respective Parliaments to support the launch of SADCOPAC, which is envisaged for September 2002.

8. New APAC Management

The following members were elected to the national executive committee of APAC:

Mr V Smith, Chairperson (the Committee)
Mr J Makgatho, Deputy Chairperson (Eastern Cape)
Dr H Mateme, General Secretary (Northern Province)
Mr M Tarr, Deputy General Secretary
Mr M Seloane, Treasurer (Gauteng)
Mr K Sinclair, Member (Northern Cape)
Ms T Sebekedi, Member (North West)
Ms T Mabena, Member (Mpumalanga)
Ms S Lucas, Member (Northern Cape)
Mr F Beukman, Member (the Committee)
Mr T Sono, Member (Gauteng)
Mr A Lewis, Member (Western Cape)

9. Recommendation

The Committee recommends that the National Assembly support and approve its participation in the formation of SADCOPAC.

10. Conclusion

The Committee wishes to extend its gratitude to the Northern Cape Legislature for hosting the Conference and also to the Department for International Development for financial assistance towards hosting the Conference.

Report to be considered.