OFFICE OF THE REGISTRAR OF PUBLIC ENTITIES: LISTING OF PUBLIC ENTITIES IN THE PUBLIC FINANCE MANAGEMENT ACT, ACT NO 1 OF 1999, (THE PFMA)

PURPOSE

  1. To inform the SCOPA of progress by the Office of the Registrar of Public Entities regarding the listing, de-listing and re-classification of Public Entities in the Schedules to the PFMA; and to inform the SCOPA on Public Entities compliance with Sections 55 (1) (d) and 52.

    2. DISCUSSION

  2. The PFMA became effective on 1 April 2000 and incorporated five schedules containing the names of all Public Entities. Public Entities are created, undergo name changes or cease to exist. The schedules of the PFMA are accordingly amended by publication in the Government Gazette after obtaining the written approval of the Minister of Finance, as set out in sections 47 and 48 of the PFMA.

    1. Section 47 provides that the Minister, by Notice in the Government Gazette; must amend Schedule 3 to include in the list of all public entities that are not listed, and may make technical changes to the list.

    2. Section 48 states that the Minister may classify public entities listed in Schedule 3 in accordance with the relevant definitions set out in section1, as:

  1. National government business enterprise;

  2. Provincial government business enterprise;

  3. National public entities; and

  4. Provincial public entities.

  1. The Office of the Registrar of Public Entities within the Asset and Liability Management Division of National Treasury has to ensure the correctness of the schedules on an ongoing basis and to act as a central administrative contact point for Public Entities.

  2. The following primary functions are executed by the Office of the Registrar of Public Entities and will be discussed in detail below:

    1. Identification of unlisted Public Entities;

    2. Reclassification of Public Entities;

    3. De-listing of Public Entities;

    4. Name changes.

  3. Since 1 April 2003, fifteen (15) Public Entities, which were not listed, have been listed.

  4. Listed Public Entities that ceased to exist are de-listed and those that have been delisted are forty-two (42) in number. Eight (8) listed Public Entities underwent name changes, and were amended to reflect the correct name upon application from the relevant department, province or entity.

    5. SUMMARY TABLE

    PERIOD

    LISTING

    RECLASSIFICATION

    DELISTING

    NAME CHANGES

    TOTAL

    31 March 2003-till to date

    15

    -

    42

    8

    75

  5. An updated list of public entities listed in the PFMA was published on 07 June 2004 on the National Treasury's web-site at www.treasury.gov.za/legislation/public finance management act. Departments have to identify which of the Public Entities under their authority are listed, and for the Public Entities to be able to identify whether they are listed or not. A copy of the updated list of public entities published on the National Treasury's web-site is attached as (Appendix 1).

COMPLIANCE WITH THE PFMA

8 The functions that are performed by the Office of the Registrar of Public Entities also include inter alia oversight on compliance in terms of the PFMA. The Office of the Registrar has to oversee that Public Entities comply with the following provisions of the Public Finance Management Act, 1999 (Act No1 of 1999) ("PFMA"):

    1. Section 55 (1) (d) of the PFMA provides that listed Public Entities should submit copies of their financial reports to the National Treasury; 93% of all the Public Entities (Schedule 2,3A and 3B) submitted their annual reports. A report on non-compliance by those entities was submitted to the office of the Auditor-General (Appendix 2).

    2. Section 52 of the PFMA provides that entities listed in Schedule 2 or government business enterprise listed in Schedule 3B must submit annual budgets and corporate plans. Ninety (90) percent of all National Government Business Enterprises (Schedule 2 and 3B) submitted their corporate plans, and ten (10) percent have not yet made the submissions. A report on non-compliance is attached as (Appendix 3). Irrespective of both written and verbal reminders, 10 % of government business entities did not comply with Section 52.

Enquiries:

Phakamani Hadebe

Head: Asset and Liability Management

Tel: (012) 315-5486