Chairperson, hon members, the Finance Bill's primary object is to give effect to certain resolutions adopted by the public accounts committee dealing with instances of unauthorised expenditure.
The Bill seeks to charge the National Revenue Fund with an unauthorised expenditure and other expenditure which the Standing Committee on Public Accounts resolutions deal with, and further seeks to regulate the closure of specific obsolete revenue accounts, particularly from the former TBVC states and self-governing territories.
The Standing Committee on Public Accounts recommended to Parliament that specified instances of unauthorised expenditure be authorised, amounts of approximately R133 million and R15 million, and that specific expenditure for the former TBVC states and self-governing territories, namely R4 139 million, be authorised.
While the Finance Bill seeks to authorise this expenditure, it does not do so in a blanket fashion, to the exclusion of efforts to recoup the spent moneys. Had the Bill merely sought to authorise unauthorised expenditure without any attempts to continue to pursue the funds and auditing trails, we would not have been in a position to support the Bill, given our stance on responsible public finance management.
However, clause 5 of the Bill makes specific provision for actions of recovery of the money to continue, and states clearly that the Finance Bill may not be construed as affecting any action to recover unauthorised expenditure. Thus the Bill makes express provision to ensure that any legal entitlement regarding the potential recovery of any losses to the state owing to the unauthorised expenditure in question must remain. As this residual right is expressly retained in clause 5, the Finance Bill should be favourably considered.
Die nuwe Wet op Openbare Finansile Bestuur, Wet 1 van 1999, soos gewysig deur Wet 29 van 1999, is natuurlik ingestel om ook hierdie probleme wat die Finansiewet moet regstel, te ondervang. Die doel van die Wet op Openbare Finansile Bestuur is juis daarop gemik om die doeltreffende bestuur van staatsgeld te bevorder en korrupsie met openbare geld te bestry en vas te vat.
Die Nasionale Tesourie het nou ook 'n uitvoerige toepassingsplan opgestel vir die geleidelike toepassing van die nuwe Wet op Openbare Finansile Bestuur. Hierdie nuwe strategiese toepassingsplan sal meewerk om nie net korrupsie, bedrog en wanbestuur in die Staatsdiens aansienlik te verminder nie, maar sal ook help om die bestuur van openbare geld deursigtiger te maak.
Ons versoek die Minister en die direkteur-generaal om hierdie wetsontwerp so spoedig moontlik in werking te stel sodat ons die voordele daarvan vir almal in die land kan genereer.(Translation of Afrikaans paragraphs follows.)
[The new Public Finance Management Act, Act 1 of 1999, as amended by Act 29 of 1999, was, of course, also implemented to obviate these problems that the Finance Act must correct. The purpose of the Public Finance Management Act is precisely to promote the effective management of state funds and to combat and clamp down on corruption with regard to public funds.
The National Treasury has now also drawn up a detailed implementation plan for the gradual implementation of the new Public Finance Management Act. This new strategic implementation plan will not only contribute towards a significant reduction in corruption, fraud and maladministration in the Public Service, but will also help to make the management of public funds more transparent.
We request the Minister and the director-general to implement this Bill as speedily as possible so that we may generate the benefits of this for everyone in the country.]
Chairperson, hon Minister, hon members of this House, clearly the objectives of the Finance Bill before the National Council of Provinces are as follows: to charge the National Revenue Fund with certain unauthorised expenditure, to authorise other expenditure and to regulate the closure of certain obsolete revenue accounts. Moreover, the essence of the Bill is to legally confirm the decisions that have been taken by the Standing Committee on Public Accounts so that expenditure that originally was unauthorised can now be properly accounted for.
The expenses outlined in this Bill occurred between 1991 and 1997, and are referred to in clauses 1 to 3 of the Bill. The total expenditure amounts to approximately R4,1 billion. The unauthorised expenditure listed in Schedule 1 of the Bill has to be paid over to the National Revenue Fund, which funds have to be refunded to the relevant departments as a direct charge against the National Revenue Fund. However, the bulk of the expenses listed in Schedule 3 of the Bill and which relates to the expenditure of the former TBVC states and self-governing territories, affects 96% of the R4,1 billion.
Although we have transcended the apartheid era, we are still victims of that dysfunctional ideology.
The TBVC states were a symbol of that wretched ideology. The Bill, in a sense, is the last nail in the coffin of the TBVC states. The new democratic order has taken the necessary steps to ensure that such unauthorised expenditure is not perpetuated into the future. The Public Finance Management Act, widely known as the PFMA, is designed to ensure that all national departments and provinces exercise reasonable care by implementing effective, efficient and transparent processes in financial and risk management in order to detect and prevent unauthorised, irregular and wasteful expenses.
The signing of the Public Finance Management Act into law bears testimony to the ANC-led Government's commitment to improving the management of the national financial resources. Plans to implement the PFMA by the National Treasury are already taking shape. Emphasis is put on training of staff, recruitment of key expertise and upgrading of technology. In this way, we can ensure effective financial management of revenue and expenditure and of assets and liabilities.
The reorganisation of the SA Revenue Service and the resultant efficient revenue collection have increased the amount of finance available for Government's use. Moreover, the recent reorganisation of the Department of Finance and State Expenditure into a single homogenous unit will ensure effective oversight in respect of departments. Simultaneously, the increased delegation of powers to departments will in turn ensure proper delivery and accountability to the national Treasury.
Given the huge political commitment displayed by the head of Government to the Public Finance Management Act, we could witness a more efficient management of our country's resources in the not too distant future.
All the members of the select committee and the parties they represent supported the Bill without any reservations, and the ANC also endorses the Bill as it stands. [Applause.]
Chairperson, hon members, once again I express appreciation for the support. The Finance Bill, which is entirely technical, supports resolutions already taken by Scopa, the Select Committee on Public Accounts. But I would like to give this House the assurance that we will continue to try and recover what can be recovered, notwithstanding the passage of this Bill. [Applause.]
Order! Mrs Versveld, you look very pleased, and I am not sure why. [Laughter.] Debate concluded.
Bill agreed to in accordance with section 75 of the Constitution.
Order! I think that member just felt that something had to be said. [Laughter.]