CONFERRAL OF VOTING MANDATE TO THE NCOP PERMANENT DELEGATES: DIVISION OF REVENUE BILL, [B4b-2004]
The Limpopo Legislature has at its sitting held on Tuesday, 2 March 2004, adopted the report of the Portfolio Committee on Finance and Economic Development on the Division of Revenue Bill, [B4B-2004] and granted authority to NCOP Permanent Delegates to vote in favour of the Bill.
The report is attached hereto, for more information.
ADV. E.N. LAMBANI
SECRETARY: LIMPOPO LEGISLATURE
REPORT OF THE PORTFOLIO COMMITTEE ON FINANCE AND ECONOMIC DEVELOPMENT ON THE DIVISION OF REVENUE BILL, [B4B-2004]
1. INTRODUCTION The above mentioned Bill was referred to the Legislature by the NCOP and the Legislature in turn referred it to the Portfolio Committee on Finance and Economic Development on 24 February 2004 for consideration and inputs.
2. PURPOSE OF THE BILL The Bill seeks to provide for 'be equitable division of revenue anticipated to be raised nationally among national, provincial and local spheres of government for the 2004/5 financial year and the reporting requirements for allocations pursuant to such division; to permit the withholding and the delaying of payments m certain circumstances; to provide for liability for costs incurred in litigation in violation of the principles of co-operative governance and international relations; and to provide for matters connected therewith..
3. CONSIDERATION OF THE BILL The Portfolio Committee on Finance and Economic Development was briefed on the principle and provisions of the Bill by NCOP Permanent Delegates during a Committee meeting held on 27 February 2004. It must, however, be noted by this House that the Division of Revenue Bill is introduced on an annual basis
4. FINDINGS The finding of the Portfolio Committee was that new clauses were inserted to the Bill. The following are the new clauses:
- Chapter 2 clause 4(3) which supports clause 5(3) on the equitable share of the municipalities
- Clause 5(7) was included in this Bill subject to the previous public hearings and committee meetings held regarding the uniform norms and standards of treasury.
- Chapter 3 clause 8 changes were in regard to organs of the state receiving funds but not providing them to municipalities
- Clause 11 was introduced because the previous grants were not reflected in the Bill
- Chapter 4 contains the duties of Accounting Officers and this will be replaced in future Division of Revenue Bills as the duties of Accounting Officers are provided for in the PFMA and will also be catered for by the envisaged Local Government Municipal Finance Management Bill.
- Chapter 5 clause 20 - there will be changes after the passing of the Public Audit Bill on the role of the Auditor General in dealing with the mismanagement of funds
The following new clauses were inserted:-
- Chapter 6 clause 23(1) which provides for the transfer of funds between municipalities in a district
- Clause 23(2) which provides for the transfer of funds between provinces upon consultation with National Treasury by the affected provinces.
- Clause 35 is also called an amnesty clause which provides that reports should be submitted to treasury on grants which were meant for specific purposes and were used for something else and previously not reported on.
5.RECOMMENDATiON The Committee noted the new clauses and supported them. Having considered the Bill, the Committee hereby recommends to the House to confer a final mandate on the NCOP delegates to vote in favour of the Bill to pass into law.
6. CONCLUSION In conclusion, I hereby move that this report be adopted as a report of the House and I move accordingly, honourable Speaker,
S.C.N SHOPE-$XTHOLE
CHAIRPERSON PORTFOLIO COMMITTEE ON FINANCE AND ECONOMIC DEVELOPMENT