CMAB D7
DRAFT 3
(11/08/2005)
REPUBLIC OF SOUTH AFRICA
PORTFOLIO COMMITTEE AMENDMENTS
TO
CONSTITUTIONAL MATTERS AMENDMENT BILL
[B 22—2005]
(As agreed to by the Portfolio Committee on Justice and Constitutional Development (National Assembly))
[B 22A—2005]
____________________________________________________________________________
AMENDMENTS AGREED TO
CONSTITUTIONAL MATTERS AMENDMENT BILL
[B 22—2005]
CLAUSE 2
Clause rejected.
NEW CLAUSE
1. That the following be a new Clause:
Amendment of section 5 of Act 103 of 1997
2. Section 5 of the Funding Act is hereby amended—
(a) by the substitution in subsection (1)(a) for the words preceding subparagraph (i) of the following words:
"[Every] Subject to this Act, every political party is entitled to be allocated moneys from the Fund for any financial year that it is represented—"; and
(b) by the substitution for subsection (4) of the following subsection:
"(4) [The] Subject to subsections (6) and (7) section 6A, the allocation of moneys from the Fund to a political party will end when the party ceases qualifying therefor in terms of subsection (1)(a).Within 21 days after the date on which a political party has so ceased to qualify, it must repay the unspent balances, as at that date, of all moneys that had been allocated to it in terms of this section.".
NEW CLAUSE
1. That the following be a new Clause:
Amendment of section 6 of Act 103 of 1997
3. Section 6 of the Funding Act is hereby amended by the substitution for subsection (4) of the following subsection:
"(4) An auditor who has performed an audit contemplated in subsection (3), must in the auditor’s report express an opinion as to whether or not the allocated moneys were spent for purposes [not] authorised by this Act.".
NEW CLAUSE
1. That the following be a new Clause:
Insertion of section 6A in Act 103 of 1997
4. The following section is hereby inserted in the Funding Act after section 6:
"Repayment of unspent balances
6A. (1) If a member of a legislature becomes a member contemplated in item 2(1) of Schedule 6A to the Constitution, the nominating party contemplated in that item does not have to repay to the Commission the unspent balances of all moneys that had been allocated to it in terms of this section section 5 in respect of the seat held by the member concerned.
(2) A political party which immediately prior to the period referred to in item 4(1)(a) or (b) of Schedule 6A to the Constitution qualified for the allocation of moneys from the Fund in terms of subsection (1)(a) section 5 {as a result of its representation in a legislature}() does not have to repay to the Commission the unspent balances of all moneys that had been allocated to it in terms of this that section if it subdivides in a manner contemplated in item 3(1)(b) of Schedule 6A to the Constitution, and any subdivision of that party continues to—
(i) (a) represent that party in the legislature concerned after the expiry of the period referred to in item 5(3) of Schedule 6A to the Constitution; and
(ii) (b) qualify for the allocation of moneys from the Fund in terms of subsection (1)(a) the said section {as a result of its representation in the legislature concerned},
whether the subdivision of that party has changed the name of that party or not.
(3) A political party which immediately prior to the period referred to in item 4(1)(a) or (b) of Schedule 6A to the Constitution qualified for the allocation of moneys from the Fund in terms of section 5 {as a result of its representation in a legislature} must, in accordance with this section, repay to the Commission the unspent balances of all moneys that had been allocated to it in terms of that section if it ceases to qualify for the allocation of moneys from the Fund in terms of the said section as a result of its—
(a) only member or members becoming a member contemplated in item 2(1);
(b) merger with another political party in terms of item 3(1)(a); or
(c) subdivision in a manner contemplated in item 3(1)(b),
of Schedule 6A to the Constitution.
(4) The person who last held the office of accounting officer referred to in section 6(1)(b) of a political party contemplated in subsection (3) or, if he or she is not available, the leader of that party must, on the last day of September of the financial year in question, close the books and records of account of the party kept in terms of section 6 and within two months one month thereafter prepare a statement showing—
(a) all amounts received by the party from the Fund during that financial year and its application of those moneys, as well as the purposes for which the various amounts have been applied;
(b) the unspent balances of the party, if any, as at the date when its books and records of account are so closed, of all moneys that had been allocated to it in terms of section 5; and
(c) all the fixed financial commitments existing legal financial obligations of the party until the end of {the financial year in question},
whereafter the accounting officer or the leader of the party, as the case may be, must have that statement and those books and records of account audited by a public accountant and auditor registered and practising as such in terms of the Public Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991).
(5) An auditor who has performed an audit contemplated in subsection (4), must in the auditor's report express an opinion—
(a) as to whether or not the allocated moneys were spent for purposes not authorised by this Act; and
(b) on the correctness of the information referred to in subsection (4)(b) and (c).
(6) The auditor's report and audited statement, as well as all statements for the financial year in question of the banking account of the political party kept in terms of section 6(1)(a) and documents in support of the information referred to in subsection (4)(c), must be submitted to the Commission by the accounting officer or the leader of the party, as the case may be, within three two months after the date on which the books and records of account of the party were closed.
(7) The Commission must within two months after receipt of the auditor's report, and audited statement, and statements of the banking account of the political party and documents in support of the information referred to in subsection (4)(c) submitted to it in terms of subsection (6)—
(a) determine the percentage amount of the unspent balances of all moneys that had been allocated to the political party in terms of section 5 that must be repaid to the Commission, taking into account the information referred to in subsection (4)(c);
(b) determine the date on which that percentage amount of unspent balances of moneys must be repaid to the Commission, which date must be before the last day of the financial year in question; and
(c) inform the accounting officer or the leader of the party, as the case may be, of the percentage amount and date determined in terms of paragraphs (a) and (b).
(8) (a) The Commission may for purposes of subsection (7)(a)—
(a) (i) direct the accounting officer or the leader of the party, as the case may be, to provide it with such other information as it may deem necessary; and
(b)(ii) appoint a public accountant and auditor registered and practising as such in terms of the Public Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991), to—
(i)(aa) verify the auditor's report and audited statement submitted to it in terms of subsection (6); or
(ii)(bb) audit the statement referred to in subsection (4) and the books and records of account kept in terms of section 6.
(b) Subsection (5) applies to an auditor who has performed an audit contemplated in paragraph (a)(ii)(bb).
(c) The verification of the auditor's report and audited statement contemplated in paragraph (a)(ii)(aa) or the auditor's report and audited statement contemplated in paragraph (a)(ii)(bb), as the case may be, must be submitted to the Commission by the auditor concerned within one month after the date of his or her appointment by the Commission.
(9) The accounting officer or the leader of the party, as the case may be, must—
(a) within 14 days after the receipt of a direction referred to in subsection (8)(a), comply therewith; and
(b) repay to the Commission the percentage amount of the unspent balances of moneys on or before the date determined in terms of subsection (7)(a) and (b), respectively.
(11) The Commission must deal with any circumstances, other than those provided for in subsections (5), (6) and (7) this section, that arise during a period referred to in item 4(1)(a) or (b) of Schedule 6A to the Constitution in the manner it deems appropriate, taking into account the objectives and principles provided for in this Act.".
NEW CLAUSE
1. That the following be a new Clause:
Amendment of section 8 of Act 103 of 1997
5. Section 8 of the Funding Act is hereby amended by the substitution in subsection (1)(b) for subparagraph (i) of the following subparagraph:
"(i) the amounts received by and accrued to the Fund, including the amounts of the unspent balances of money repaid to the Commission, if applicable, during that financial year;".
NEW CLAUSE
1. That the following be a new Clause:
Insertion of section 9A in Act 103 of 1997
6. The following section is hereby inserted in the Funding Act after section 9:
"Offences and penalties
9A. Any person who—
(a) contravenes or fails to comply with any provision of this Act section 6(2), (3) or (5) or 6A(4), (6) or (9)(b); or
(b) fails to comply with a direction in terms of section 6A(8)(a)(i)},
is guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding six months two years.".
CLAUSE 4
Clause rejected.
NEW CLAUSE
1. That the following be a new Clause:
Amendment of section 10 of Act 103 of 1997
7. Section 10 of the Funding Act is hereby amended by the substitution in subsection (1) for paragraph (d) of the following paragraph:
"(d) prescribing the procedure according to which and manner in which payments from, and to, the Fund are to be made after the election of Parliament and every provincial legislature or the election of Parliament or any provincial legislature or the expiry of the period referred to in item 4(1)(a) or (b) of Schedule 6A to the Constitution; and".
NEW CLAUSE
1. That the following be a new Clause:
Amendment of Preamble of Act 103 of 1997
8. The Preamble of the Funding Act is hereby amended by the addition of the following paragraph:
"AND WHEREAS it is necessary to provide for the re-allocation of moneys from the Represented Political Parties’Fund, and to regulate the repayment of unspent balances of all moneys allocated, to political parties participating in Parliament and provincial legislatures where a member of a legislature becomes a member of another party whilst retaining membership of that legislature or where an existing party merges with another party, subdivides into more than one party or subdivides and any one subdivision merges with another party;".
LONG TITLE
1. On page 2, in the second line, to omit "allocation" and to substitute "re-allocation".
2. On page 2, in the second line, after "Fund" to insert:
, and to regulate the repayment of unspent balances of all moneys allocated,