As we understand it, the question posed by the Ad Hoc Committee on 11 November 2003 in regard to the SDA and the JSCI was whether -

• Would the Auditor-General consult the JSCI on possible exclusions from the audit report as envisaged by clause 22(1) of the Public Audit Bill?

Yes. The Auditor-General is obliged in terms of Clause 22 to consult the JSCI on all possible matters "of national interest" when reporting on any aspect of the audit of any of the three accounts in question, which would include procurement from the SDA.

However, the final discretion is the Auditor-General in determining the extent of the exclusion based on the national interest. It is also very important to note that in terms of clause 22(2), the Auditor-General cannot be prevented to report on any unauthorised expenditure, fruitless and wasteful expenditure and irregular expenditure relating to the three accounts in question.

• Would the JSCI deal therewith as envisaged by clause 22(1)?

Yes. If clause 22 becomes law, the JSCI will be consulted by the Auditor-General in terms of clause 22, and will be obliged to fulfill the role envisaged by clause 22 on behalf of Parliament.

[Although the JSCI are obligated to deal specifically with the oversight of intelligence matters in terms of their enabling legislation, the Intelligence Services Oversight Act, No 40 of 1994 (as amended by the Intelligence Services Control Amendment Act, No 66 of 2002), consideration of the extent of reporting also in relation to procurement matters raised with by the Auditor-General will now become one of the JSCI functions.

A review of the Special Defence Account (SDA) also indicates that the SDA does indeed deal with military intelligence issues.]

1. Functions of Committee.-The functions of the Committee are-

(a) notwithstanding anything to the contrary contained in any other law or the common law, to obtain from-

and report thereon to Parliament;