Chairperson, the Special Investigating Unit has had difficulties assisting state institutions in the recovery of losses as a result of serious malpractice and maladministration.
Until now, the SIU has made use of what is called a mixed funding model to fund its investigations. It is allocated funds by way of direct transfer from the Justice and Constitutional Development Vote. In addition, the SIU has, in the past, subsidised its budget by entering into what are called service level agreements with some state institutions. This allows it to charge fees and recover its expenses from the relevant institution.
Recently, however, the validity of these service level agreements was brought into question. Consequently, the SIU has not been able to enter into any new service level agreements. This has seriously affected the SIU's operational budget.
Although the SIU has received a substantial additional allocation in 2011- 12, and although its allocation for the current year has increased significantly, these measures were specifically intended to address the funding shortfall. The expectation is that, when the necessary legislative amendments are effected, the SIU will once more supplement its resources by charging for its services.
The proposed amendments in this Bill therefore empower the SIU to charge fees from a state institution to defray operational costs relating to an investigation.
It needs to be borne in mind that certain institutions may be unable to afford the SIU's fees and obliging them to do so may have adverse consequences for service delivery. Here we are thinking in terms of municipalities in the deep rural areas that have a very low rates base.
To address this, the committee has introduced a new procedure, which permits affected institutions to apply to National Treasury or to the relevant provincial treasury for exemption from paying the fees charged or to be recovered.
Once more, we recommend this Bill to this House and we ask that it be approved.
There was no debate. Bill read a second time.