The Auditor-General had on the 15 September 2005 requested information regarding the disclosure of interests of the following Members of the Executive.

The Office of the Registrar checked the disclosures and forwarded the following table to reflect the disclosure status of the member concerned. The Registrar also indicated to the Office of the Auditor General that she would seek the responses from the Members concerned regarding the alleged non-disclosure.

Close Corporations

Section 21 Companies

All Members had responded to the Registrar’s request for clarification and amendments.

Following the publication of the "Auditor General’s Report on the Declarations of Interests by Ministers, Deputy Ministers and Government employees" in January 2006, the Chairperson of the Joint Committee on Ethics and Members’ Interests requested that the Registrar obtain from the Auditor General further information regarding the alleged non-disclosure of Members.

The Registrar established that the Auditor General’s Report was report was based on the 15 September 2005 request for information.

Mr Modiba (Deputy Registrar of Companies), Mr Voller and Mr Ali attended on behalf of CIPRO. They indicated that the Registrar of Companies had suddenly taken ill and was unable to attend.

The Committee was informed that Mr Modiba would respond to queries from the Committee on behalf of the Registrar of Companies. The Committee expressed its displeasure that the Registrar of Companies was not available to attend the Committee meeting.

The Committee expressed concerns on the accuracy and completeness of the database. In his response to this, Mr Modiba indicated that the database was audited and it was their view that the information was accurate. He conceded that while there are no backlogs some data may have been incorrectly captured and further that there was some information missing. Mr Modiba informed the Committee that the current e-lodgement system allows for the client to update the information electronically thus reducing the margin of error. CIPRO had also offered to address any issues related to errors on their system on a case-by -case basis.

In his input to the Committee, Mr Modiba stated that the Companies Act prescribes the process to follow when a director resigns from a company. The Act also prescribes the process to deregister a company. He agreed that CIPRO was constrained by the prescribed processes in the Companies Act.

The Committee recommended that should CIPRO find their work constrained by the Companies Act they should table amendments for Parliament’s consideration. The Committee also recommended that CIPRO improve communication with its clients.

The Committee agreed that it will hold a follow-up meeting with the Accounting Officer of CIPRO.

In his briefing to the Committee, the Auditor General stated that his Office had received numerous requests to investigate alleged irregularities by government employees and had on that basis, carried a transversal audit of 142 departments.

The purpose of the audit was to ensure that public officials declare their interests appropriately.

The CIPRO databases were compared to the PERSAL database. When the list was scrutinised, Ministers and Deputy were included on the list. The Auditor General reported that the Minister of Public Service and Administration had indicated that she would issue a letter to all other Ministers informing them about the audit investigation with a request to cooperate with the Auditor General.

The Registrar had been sent correspondence from the Auditor General on the disclosure status of the Members. The Registrar responded with the information table above.

The Auditor General indicated that the Ministers and Deputy Ministers had an opportunity to respond to the report before it was finalised.

The Committee asked the Auditor General whether he had verified the accuracy of the CIPRO database. The Auditor General said that he could not verify the completeness of the CIPRO database.

The Auditor General in response to a question by a Member indicated that there was direct engagement with individual Members and the Minister of Public Administration.

The Committee agreed that in similar cases related to Members of Parliament there should be communication between the Auditor General, the Office of The Registrar and CIPRO. In this regard the Auditor General should engage the Registrar to ascertain all the information before any report related to Members is published.

The Chairperson thanked the Auditor General for the report and agreed that the process assisted in improving awareness and would aid in ensuring compliance with the requirements of the Code of Conduct.

The Committee then considered the Report of the Registrar and agreed to the following;

On the 3 October 2005, the Registrar requested in writing details of the Minister’s interests in Votani Mawethu.

The Minister responded on the 13 October 2006 that Votani Mawethu was an NGO which was established to assist people to obtain identity documents for the 1999 election. The directors shut down the programme of the organisation in 2000.

The Minister was not aware that the organisation was not formally disbanded, but has now taken steps to disband the organisation.

The Member complied with the requirements of the Code accordingly there is no breach of the Code of Conduct for Members of Parliament.

On the 3 October 2005, the Registrar requested in writing details of the Deputy Minister’s interests in Go Ja Beng Fast Foods and Happy Developers.

The Deputy Minister had disclosed his interests in Casbah Cinema, Hectaris and Hectaris and Zinrus Developers

The Deputy Minister advised that Go Ja Beng Foods and Happy Developers were deregistered on 27-06-2001. The de-registration was published in the Government Gazette of 22 June 2001, Gazette number 22372, notice number 129785.

The Committee ruled that as these companies are formally deregistered there is no breach of the Code of Conduct for Members of Parliament.

On the 3 October 2005, the Registrar requested in writing details of the Minister’s interest in Luthando and The Tertiary Education Funds of South Africa.

Minister Pandor indicated in her response on 18 October 2005 that she had disclosed her interests in Luthando in 2003 and 2004 . In 2005 she resigned her directorships in Luthando and therefore did not deem it necessary to disclose.

She also indicated that the article 21 company Tertiary Education Fund of South Africa no longer exists.

There is no breach regarding the Tertiary Education Fund as Members are not required to disclose directorships in article 21 companies. Refer to (ATC of 11 November 2005 number 1262)

The Committee found that on the matter of Luthando that the Member had disclosed in 2004. With regard to her directorship in Luthando the Committee accepts the Minister’s undertaking that she had resigned her directorship.

The Committee finds that there is no breach of the Code.

Deputy Minister N Hangana has disclosed her interests in Balsas Management and All Pay.

There is no breach of the Code as the Member disclosed her interests as required.

On the 3 October 2005, the Registrar requested in writing details of interests in companies in Momentum Oil Refinery Explorations, Thaba Drank Kelders, Braai Spot CC and article 21 company Creative Housing Utility.

Deputy Minister Oosthuizen produced documents which show that he resigned as director of Momentum Oil refinery on the 1 January 1985.

Deputy Minister produced documents that shows that he resigned from Creative Housing Untility on20 June 1987.

Deputy Minister indicated that Thaba Drank Kelders and Braai Spot CC were dormant and were deregistered in November 2005. The Deputy Minister had also shown that the companies had not traded for more than 10 years and that Thaba Drank Winkel was established in 1986 and the Deputy Minister was unaware that he was connected to the entities.

On the 3 October 2005, the Registrar requested in writing details of the Deputy Minister’s interests in Development Enterprise for Management and Strategic Services as well as Biz Africa.

In his response on the 11 October 2005 the Deputy Minister submitted a copy of his letter of resignation from Development Enterprise for Management and Strategic Services. The Deputy Minister advised that his participation in Biz Africa was in his capacity of the President of the ANC Youth League, he relinquished the Presidency on the 14 August 2004 and automatically all interests in Biz Africa.

There is no breach of the Code of Conduct for Members of Parliament. The Committee notes that Deputy Minister Gigaba had disclosed both the interests in his 2004 disclosure, this gives credence to his response that he is in process of resigning the interests.

On the 3 October 2005, the Registrar requested in writing details of the Deputy President’s interests in Lesila (burial society) and The Community Peace Foundation an article 21company.

The Deputy President responded on the 14 November 2005 that in 1997 the University of the Western Cape deregistered the Community Peace Foundation.

The Deputy President indicated that Lesila was established in 1999, in response to frequent requests for assistance with burials by members of the community.

The Deputy President further indicated that Lesila was established to provide financial support to needy families who could not afford burial expenses. Lesila was therefore an organisation for which no benefit or remuneration could be accrued. In any event the organisation never operated.

Based on the information received the Committee finds that as there was no intention of financial gain in the establishment of the Lesila Burial Society, there is no breach of the Code of Conduct.

Deputy Minister Xingwana had advised the Registrar of her resignation from City Cat after the matter was considered by the Committee on 11 November 2005.

The Committee finds that there is no breach of the Code of Conduct for Members of Parliament.

On the 3 October 2005, the Registrar requested the Deputy Minister in writing to submit details of his interests in Land and Agricultural Policy Centre. Deputy Minister has disclosed his interests in Tregoyd.

Deputy Minister Hanekom in his response confirmed that he resigned from Land and Agricultural Policy Centre 10 years ago. He contacted the Land and Agricultural Policy Centre in order to ensure that his resignation is formalised.

Tregoyd has been disclosed so there is no breach. The Land and Agricultural Policy Centre is a not for profit organisation and therefore there is no breach of the Code of Conduct.

Minister Radebe declared his interest under Land and Property, he has a 50% interest in Stand 1993 in Houghton.

There is no breach of the Code of Conduct for Members of Parliament.

The CC Hoewe 114 Lyttleton was a property holding CC that owned two holiday flats in Port Edward, which were sold in 2005. The flats were previously disclosed in the 2003, 2004 register. The Minister has also subsequently signed papers to be excluded from the CC.

There is no breach of the Code of Conduct for Members of Parliament.

On the 3 October 2005, the Registrar requested the Minister in writing to submit details of her association with Black South Africa Freedom Songs an article 21 company. The Minister indicated that the entity had never operated.

Members are not required to disclose interests in not for profit organisations. There is no breach of the Code of Conduct for Members of Parliament.

On the 3 October 2005, the Registrar requested for the Deputy Minister to advise the status of her resignation from Western Ocean. The Deputy Minister had informed the Registrar that she had resigned her interests in Western Ocean 38. She submitted proof of resignation. (This matter was previously considered by the Committee.) Refer to ATC 11 November 2005 page number 1262.

There is no breach of the Code of Conduct for Members of Parliament.

On the 3 October 2005, the Registrar requested the Minister to submit details of her association with Jobco an article 21 company.

The Minister indicated that the Directorship arose from her role as government trustee on the Business Trust. The programmes included the Tourism and Education. The Minister updated her record accordingly.

As this is an article 21 company directly associated with the Minister’s Executive role, there is no breach of the Code of Conduct for Members of Parliament.

On the 3 October 2005, the Registrar requested the Minister in writing to submit details of her association with The Community peace Foundation.

The Minister advised she was never a Member of the Community Peace Foundation and in any event it was deregistered on 1997

The Company was deregistered. There is no breach of the Code of Conduct for Members of Parliament.

In its consideration of the alleged non-disclosure of interests, the Committee noted that there is no conflict of interests. There is also no evidence that any member named above has promoted his or her financial interest.

The Committee notes that the purpose of the Code is to ensure that the member discloses his or her financial or pecuniary interest. In the cases outlines above there are no current active financial interests that have not been disclosed. The Committee is also mindful that the purpose of the Code is to promote ethical conduct.

In its consideration of these matters, the Committee has concluded that it must develop further guidelines to assist members. To this end the Committee hopes to host a series of workshops within Parliament to promote debate on the issue of ethics and examine various systems of accountability for elected representatives. The Committee will also host a conference on ethics in public life to obtain expert view and facilitate public comment on the issues.

The report was adopted by the Committee on the 23 May 2006.

Signed

_______________________ _____________________

Mr L Landers Date

Chairperson of the Joint Committee

on Ethics and Members’ Interests

______________________ _____________________

Mr AL Moseki Date

Deputy Chairperson of the Joint Committee

on Ethics and Members’ Interests