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Review of Money Bills Amendment Procedure Act: Joint Workshop of Finance and Appropriations Committees

This joint workshop discusses the review of the Money Bills Amendment Procedure Act and related matters, including the functions and management of the Parliamentary Budget Office, norms and standards for provincial legislatures, and the way forward.

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Review of Money Bills Amendment Procedure Act: Joint Workshop of Finance and Appropriations Committees

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  1. Joint Workshop of the Finance and Appropriations Committees on the Review of the Money Bills Amendment Procedure and Related Matters Act (Act No 9 of 2009) 8 February 2017

  2. Introduction • Background • Resolution of 5th Parliament • Procedures to be developed in the rules • Functions and management of the PBO • Consequential matters • Norms and standards for provincial legislatures • Way forward Background

  3. Act was drafted by Parliament • Was a result of the Oversight and Accountability Model • Oversight and Accountability Model, ((ATC, 27 January 2009) - approved by the National Assembly on 17 February 2009, and by the National Council of Provinces on 19 March 2009. • 16 April 2009 - Act came into operation. • 24 May 2012 - National Assembly, citing technical challenges that have become apparent with the implementation of certain provisions of the Act, by resolution instructed the Standing Committee on Finance to review the Act with a view to introducing amending legislation if necessary. • 20 September 2012 – Committee reports on progress • Submission received from KZN Provincial Legislature – constitutionality of Schedule to Act Background Background

  4. On 19 May 2016 NA adopted the following resolution: • The Chief Whip of the Majority Party moved: That the House - • 1) notes that the Third Parliament initiated and passed the Money Bills Amendment Procedure and Related Matters Act in 2009 (Act 9 of 2009); • 2) further notes that a number of technical challenges have become apparent with the implementation of certain provisions of the Act; • 3) instructs the Standing Committee on Finance to review the Money Bills Amendment Procedure and Related Matters Act with a view to introducing amending legislation if necessary. Resolution of 5th Parliament Background

  5. Resolution (cont.) • The resolution requires the Committee to – • (a) evaluate the application of the legislation including, but not limited to, the timeframes and sequencing associated with the different financial instruments and bills, and the procedures to be developed in the rules; • (b) report on any other matter related to the implementation of the Act; • (c) confer with the Standing Committee on Appropriations; and • (d) submit a progress report to the National Assembly by 30 September 2016. • Except for no direct reference to the challenges facing the Parliamentary Budget Office and the necessary change to the date for reporting, the resolution is in all respects the same as the one in 2012. • Progress report - ATC – 27 September 2017 Background

  6. Time frames & sequencing • Time frames and sequencing provided for in the Act: • BRRR – section 5(4) – after adoption of Appropriation Bill before adoption of reports on MTBPS • MTBPS – section 6 – 3 months before introduction of Budget – committees report 30 days after tabling – correction required • Timeframes for Minister to respond – should this be determined or reasonable? • Fiscal Framework, DORB & Appropriation Bill – sections 7 to 10 – sequencing • Revenue Bills – section 11 • Adjustments budget – section 12

  7. Sequencing

  8. Procedures to be developed in the rules • The Act requires co-ordination between committees in fulfilling their mandates during the budget process in respect of the following: • BRRR (section 4(5)) • Appropriation Bill (section 10(8)) • Adjustments budget (section 12(16)) • How can this process envisaged in the Act be regulated practically in the rules? The rules could follow the review process.

  9. Functions and management of the PBO • Section 15 of the Act establishes the PBO and sets out the following: • Functions (section 15(2)); • Appointment and removal of director (sections 15(5) & ((8)); • Reporting to Parliament (section 15(11)); and • Management of PBO (sections 15(12)-(15)). • How can the PBO be aligned to the FMPPLA or include fiduciary duties for the Director as accounting officer for an entity?

  10. PBO (cont.) • Aligned to the FMPPLA • Clarity on whether the PBO is an entity that receives a transfer of funds • Responsibility of Director for the fiduciary duties, financial management and human resource management • Reporting through the Presiding Officers, and included in Parliament’s annual report. • Presiding Officers submit reports to Houses • Chairpersons of finance and appropriations committees and relevant House Chairpersons act as advisory board to consult about structure and conditions of service of PBO • Advisory board to appoint person to act as Director when vacancy exist.

  11. The language used in the Act can be improved to be consistent with language used in parliamentary processes (e.g. definitions). • Certain areas of the Act requires further consideration (e.g. Whether section 3 is necessary? Whether the review of actual spending section 6(2)(f) should be referred in terms of the Act? • Correction of section 11(4)(c), which incorrectly refers to subsection (7) instead of (6)). • Correction to section 12(6) to ensure constitutionality of legislative process. • Other corrections to the latest terminology used in performance reporting (section 5(1)) and typographical corrections (section 6(2)(d)). • Insertion of words to clarify meaning (e.g. definitions, sections 6 to 11). Consequential matters

  12. Section 16, read with the Schedule to the Act provides for norms and standards for provincial legislatures. • Section 120(3) of the Constitution provides that provincial legislatures must pass provincial legislation to set out a procedure to amend provincial money Bills. • Section 116 (1) of the Constitution provides that a provincial legislature may control and determine its internal arrangements, proceedings and procedures. • Section 16 of the Act must be consistent with the Constitution. Norms and standards for provincial legislatures

  13. Policy decisions for Committee • Process • Develop and consider a draft amendment Bill • Public hearings on draft amendment Bill • Report with an draft amendment Bill after public hearings for purpose of introducing a committee Bill Way forward

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