DEPARTMENT OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT
EXECUTIVE SUMMARY
REPORT TO THE PORTFOLIO COMMITTEE FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT
JUNE 2003
|
Shortage |
||
Capital |
Interest |
Total |
|
Umtata |
R 2 925 849 |
R 2 988 449 |
R 5 914 298 |
Bisho |
R 1 810 764 |
R 1 735 612 |
R 3 546 376 |
TOTAL |
R 4 736 613 |
R 4 724 061 |
R 9 460 674 |
The Grahamstown Office, where the regional fund is centralised, is awaiting a decision from Management at National Office to give direction regarding the deficit (shortages). This deficit is a constitutional matter and the DOJ&CD should make good this account as it would be unconstitutional by the Government to treat minors in the former TBVC states in a manner that prejudices these minors in comparison to their former RSA counterparts.
This is a very serious and urgent matter, as the Grahamstown Office is inundated with calls to pay out moneys that have become claimable, but cannot do so due to the uncertainty regarding the source of funding to off-set the deficit.
Inland Areas
The fund has is in the process of being centralised at the Pretoria Office. The Task Team is currently dealing with the matters relating to the Mafikeng (Mmabatho) and Thohoyandou Offices.
Reconciliation of funds invested with the PIC
During the 2000/01 financial year the PIC confirmed the 2 investments with the PIC namely: the Guardian’s Fund Main Account => balance R837 199 (1999/00: R748 400) and the Guardian’s Fund Reserve Fund => balance R12 579 828 (1999/00: R9 321 161). These amounts had not been accounted for in the books of the Business unit: Master of the High Court.
Progress to-date
Meetings to resolve this matter are currently taking place between the Master’s Business Unit, the Office of the CFO and PIC as an on-going process.
SARS Account
PAYMENTS TO THE SOUTH AFRICAN REVENUE SERVICES (SARS)
In terms of section 92 of the Administration of Estates Act, 1965, those moneys in the fund that have remained unclaimed by the persons entitled thereto, for a period of thirty (30) years from the date that such funds became legally claimable must be forfeited to the state and paid over to the SARS.
In addition to these moneys, there are other moneys such as commission and non-commission moneys relating, for instance, to liquidations etc collected on behalf of the state which are payable to the SARS.
Basis of qualification: Due to the ineffective accounting (manual) system in place, it was not possible to adequately identify all moneys payable to SARS.
Progress to-date
Work-in-progress. There are ongoing discussions between the Business Unit: Master of the High Court and SARS. It was recently agreed that the process be postponed until the computerisation of the Guardian’s Fund has reached an advanced level, which will provide an effective system of identify all such moneys payable to SARS.