Review of the Public Audit Act 8 September 2017

Overview Introduction Key policy issues Conclusion The time frame given with regards to the first step takes into account the following: The time to prepare the memorandum in the committee, for the memo to be ATC’ed, then for it to be heard in the House.

Introduction SCOAG resolved to publish Bill for Public Comments After the cut-off date, 35 public comments were received Comments ranging from legal, policy issues, cosmetics-spelling, grammar. The presentation elucidate key issues of policy in nature The time frame given with regards to the first step takes into account the following: The time to prepare the memorandum in the committee, for the memo to be ATC’ed, then for it to be heard in the House.

Key Policy issues (1) Revenue Funds Clause 3(b)(1B)(e) states that upon receipt of payment by the debtor, the Auditor-General must deposit the money received into the National Revenue or the Provincial Revenue Fund, as the case may be. Majority of submitters raised concern about the appropriateness of such, in particular if an auditee is self-funded or governs by MFMA Absence or lack of mediation for the aggrieved debtor Clause 3 (b) (1B) (g) provides that a debtor aggrieved by the Auditor-General’s decision to recover any loss may approach the High Court for a judicial review of the decision in terms of the Promotion of Administrative Justice Act, 2000. Why only recourse is to approach High Court? Provide an alternative dispute resolution The time frame given with regards to the first step takes into account the following: The time to prepare the memorandum in the committee, for the memo to be ATC’ed, then for it to be heard in the House.

Key Policy issues (2) Recovery of debts by the AG Clause 3 (b)(1B)(a) empowers to the Auditor-General to recover from the responsible accounting officer, accounting authority or accounting authority, as the case may be, any loss resulting from unauthorized, irregular, fruitless and wasteful expenditure, as defined in any applicable legislation relevant to the auditees. The role will not undermine the primary role of being an independent auditor, and thereby compromise its constitutional independence. Recovery of debts is currently a function of a concern institution- as provided by different legislations and regulations The time frame given with regards to the first step takes into account the following: The time to prepare the memorandum in the committee, for the memo to be ATC’ed, then for it to be heard in the House.

Key policy issues (3) Establishment of the Remunerations Committee Clause 3 (2) (BA) provides that the AG must establish a remuneration committee, which will amongst others, make recommendations to the Independent Commission on the salary, allowances and benefits of the AG. Conflict of interest Appointment of the Audit Committee Clause 9 (1) (b) empowers the Deputy Auditor-General to appoint the members of the audit committee. Compromise the independence of the Audit Committe The time frame given with regards to the first step takes into account the following: The time to prepare the memorandum in the committee, for the memo to be ATC’ed, then for it to be heard in the House.

Conclusion Flowing from the above, there is a need for the Committee to take decisions on key policy issues, which are as follows: Firstly, the appropriateness of recovered losses or monies deposited to the National Revenue Fund or Provincial Revenue Fund. Secondly, to consider creating a mediation process between the debtor and AG before the debtor approaches a High Court Thirdly, whether or not the recovery and collection of debt by AG will not compromise its constitutional independence. Fourthly, whether or not the establishment of remuneration committee by the AG will not cause a conflict of interest Lastly, whether or not the appointment of the Audit Committee by DAG will not compromise its independence.