EMPOWERING PAC THROUGH REGIONAL NETWORKING EMPOWERING PAC THROUGH REGIONAL NETWORKING PRESENTATION BY….. HON. JOHN M. CHEYO, MP CHAIRPERSON PAC – TANZANIA AT THE 2012 ANNUAL MEETING OF ARAPAC, 10 TH – 13 TH OCTOBER 2012, MALE, MALDIVES. 1

The Presenter Chairperson of PAC Tanzania  From to date Secretary General – SADCOPAC (2006 – 2011) Chairperson- EAAPAC (2009 – 2011) Resource person for WAAPAC Formation Member of Pan African Parliament ( 2008 – 2010) Member of Parliament- Bariadi East ( 2005 to date) Presidential Candidate (UDP) – 1995 and

An I deal Committee The Committee is small; committees seem to work well with 5 ‐ 11 members, none of whom should be government Ministers. A senior opposition figure chair the Committee. The Committee is appointed for the full term of parliament. The Committee is adequately resourced, with an experienced clerk and competent researchers. There is clarity on the Committee’s roles and responsibilities The Committee meets frequently and regularly. Hearings are open to the public; a full verbatim transcript and summary minutes are available for public distribution. 3

An Ideal Committee… A steering committee plans the Committee’s work in advance and prepares an agenda for each meeting to the full Committee. The typical witness is a senior public servant (the “accounting officer”) accompanied by the officials that have a detailed understanding of the issues under examination. In addition to issues raised by the Auditor, the Committee occasionally decides to investigate other matters. The Committee strives for some consensus in its reports. The Committee issues formal substantive reports to parliament at least annually. 4

An Ideal Committee… The Committee has established a procedure with the government for following up its recommendations and is informed about what, if any, action has been taken. The Committee uses the Auditor as an expert advisor. Parliament holds an annual debate on the work of the Committee. 5

The typical Product of an Ideal PAC is a Report with the following features It is a consensus report to Parliament It is based on the Report of the Auditor General - Financial - Projects - Value for Money - Forensic - Accurate assessment on the Accounting Officers’ reaction and actions taken visa-a-avi recommendations of the AG 6

Features… - An independent investigation by the committee on matters arising from the AG Report - Is a summary of recommendations to Parliament - A basis for Parliamentary Debate, leading to Parliamentary resolutions which are quasi legislations - Allows follow up mechanisms - Open to Public 7

Method of Empowering the Committee Training by AG and other Government agencies Peer learning through accountability conferences Networking through regional and international associations e.g. SADCOPAC, EAAPAC, WAAPAC Developing accepted best practices through conference resolutions Training Visits to other countries ( training tours outside jurisdictions e.g. Denmark PAC, Sweden PAC, Finland, UK, Australia Beachworthy) 8

Methods… Learning by doing-encouraging members to take leadership of committee discussions with accounting officers 9

SOUTHERN AFRICAN EXPERIENCE Role Played by SADCOPAC in empowering PACs 10

Shared Impediments to PAC effectiveness within the Region Time commitment Continuity Limited or lack of internal expertise Limitations on PACs’ powers Limited resources Work load Legislative environment and political support Lack of follow up procedure on PAC’s recommendations 11

Shared Impediments to PAC effectiveness... Backlog of audit reports Attendance of meetings Quality of PAC reports Independence of the SAIs 12

Solutions to impediments - REGIONAL NETWORKING 13

Historical note of SADCOPAC An association of PACs from SADC member states It was launched in October 2003 in Jo’burg, South Africa Members include Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, Seychelles, Tanzania, Zambia, Zimbabwe The secretariat is in Tanzania 14

Mandate SADCOPAC is an autonomous and independent organization established as permanent institution in order to foster the exchange of ideas and experience among PACs. Participation in SADCOPAC activities is open to PACs outside SADC countries as affiliated members. 15

Mission SADCOPAC is an autonomous and independent association of PACs from SADC states established to promote mutual support; foster the exchange of ideas, knowledge and experiences; act as a recognised voice of PAC within SADC community; and promotes accountability, good governance and transparency in SADC states. 16

Vision “SADCOPAC shall strive to distinguish itself as an organization empowering the Members of each Member State to effectively carry out their functions as oversight committee over public sector finances, as well as promoting good governance” Furthermore, SADCOPAC shall strive to work with governments in SADC countries in meeting the peoples’ expectations of sound and accountable governance, through best practice, sharing information and experience and to continuously facilitate the efficient and effective management of Public Resources. 17

Aims and Objectives To work with governments and other relevant role players in meeting the peoples expectations of sound and accountable governance Build capacity and expertise among SADCOPAC members to diligently and efficiently carry out their oversight functions Improve the effectiveness of PACs or similar committees in the SADC Region Promote good governance Strengthen relationships with appropriate SADC structures 18

Aims And Objectives Cont.. Share Best Practices and innovation, and, where appropriate and possible, harmonize and standardize the work of PAC in the region Conduct research and introduce new best practices and innovations to improve and enhance the effectiveness of PAC in the region Communicate and build relationships with individuals and organizations with relevant expertise (nationally and internationally) Empower members to disseminate information on the work of and activities of PAC among elected representatives, the media and general public, as well as oversight or similar committees Liaise with the African Organization of Supreme Audit Institutions (AFROSAI) on areas of mutual concern 19

Core Values Specialized knowledge and insight into the work of PAC Platform for sharing experiences and knowledge amongst PAC members of SADCOPAC An organization for members and run by members of PAC with assistance of Secretariat Centralized point where civil society and other institutions can engage with PACs 20

Critical Success factors Leadership of the Governing council Support for and participation by all PACs from member states in SADCOPAC activities Financial sustainability Timely payment of membership fees Secured donor funds Diversification of donor funding Sustainable and skilled secretariat Relevant training and research programmes Training for members Training for PAC Clerks and Secretariat staff 21

Key Result Areas In year 2012 to 2015 SADCOPAC will measure its performance from the following areas; governance activities Secretariat services, administration and financial management Training activities for MPs and PAC Clerks Research and information sharing Implementation and follow-ups of SADCOPAC annual conference resolutions e.g. independence of SAIs Liaison with strategic partners or similar organizations such as SADCPF, EAAPAC, WAAPAC and INTOPAC Resolution to establish AFROPAC and INTOPAC as a mirror image to AFROSAI and INTOSAI. Broadening the financial resource envelope. 22

Current financial Sources In the period of 2012 to 2015 SADCOPAC expects funding from the following sources Annual subscription fees Donor funding WBI GIZ Offices of Auditor Generals 23

A summary of Conferences Held YearHostThemeOutput 2004TanzaniaOversight Role of Parliament in safeguarding Public Resources 1.The ExCom was formally ratified 2.The interim Constitution was adopted 3.Six strategic topics were discussed from which fifteen observations and recommendations were made 2005TanzaniaEnhancing effectiveness of PAC in Public Financial Management and accountability Six strategic topics were discussed thereafter five major resolutions were reached 2006NamibiaEffective Public Financial Accountability in the SADC Region Three strategic topics were discussed and thereafter members came up with eight resolutions 24

DateCountryThemeOutput 2007MozambiqueTransparency in the management of Public Resources and accountability Two strategic topics were discussed and fourteen resolutions were identified 2008MalawiMaking Government accountable to the people through PAC 1.Members training was carried out 2.Five resolutions were reached 3.Election of Office bearers took place 2009ZambiaEnhancing Transparency and accountability by breaking barriers- The role of PAC 1.Twelve resolutions were reached 2010SwazilandEnhancing Accountability for the use of Public Resources 1.Typical Resolutions attached 25

DateCountryThemeOutput 2011ZimbabweSustainable and Effective Public Resources Accountability through Strategic Partnership of PAC with other Oversight Institutions 1.Six resolutions were reached 2.Election of Office bearers took place 2012South AfricaMaking Government accountable to the people through PAC 1.Declaration for the establishment of AFROPAC was passed. 2.Twenty resolutions were reached 26

SUCCESS Good Practice Manual Adopted by member states Strategic and Business Plans in place Training in partnership with WBI and GIZ New members are trained on the work of PAC Continues training of Clerks Annual Conferences Strategic topics are chosen, discussed and deliberated SADCOPAC website ( Engagement of full time staff 27

Success… Most Parliaments take PAC seriously and provide amenities as per adopted good practice manual There are legislations guiding the operation of PAC and AG. For instance Public Audit Act in Kenya, Tanzania, Uganda and SA. - Newly established Parliamentary Standing Orders for Botswana allows for PAC to be a Standing Committee. Acceptance by the Executive wing of most States that PACS are instruments of domestic accountability PAC Reports have immense political influence to the community as they form an assessment of how the Executive uses public resources 28

Success… Media is now an accepted partner in the work of Parliament in holding the Executive to account as in the Region the media is accepted to televise PAC Reports as they are tabled in Parliament, thus bringing the community on board. In some jurisdictions, law enforcing agencies e. g the Police are being used to enforce PAC Reports- Uganda experience. Follow up committees are in place by law e.g. the Kenya experience 29

SUMMARY OF RECOMMENDED BENCHMARKS ON PAC PRACTICES PracticeRecommended Benchmarks and Key Considerations Mandate and legal powers A PAC’s mandate should be stated in a detailed and clear manner PAC members should have a common understanding and articulation of a PAC’s mandate, roles and powers The Rules and/Acts of Parliament must empower the PAC with appropriate powers to carry out its mandate PAC members must have a good understanding of how PAC powers should be applied The Rules and Acts of Parliament should allow for regular review and updating of a PAC’s mandate to ensure that it remains adequate and relevant to the current political and legislative context 30

Size PAC should preferably have 6 – 15 members. The following factors should be considered when deciding on the size of a PAC following: The scope of the committee’s mandate and its responsibilities The size of Parliament The number of SAIs reports to be reviewed by the PAC The advantages and disadvantages of small and large committees Term of office of Committee members and Chairperson Ideally PAC’s members and Chair should be appointed for the full term of Parliament because: Experience and continuity are some of the critical factors for success of a PAC The nature of a PAC’s work is such that it may carry over from one year to another and may require follow-up A PAC invests resources in building capacity of members. The return on investment takes a long period to be realised 31

Chairperson Although having a Chair from the Opposition is considered best practice in the majority of Commonwealth countries, there is no research-based evidence to prove that PACs that are led by members of the Opposition are more effective than those chaired by members of the ruling party or vice versa. One of the factors that should inform the choice of a Chairperson is whether the political environment is enabling and supportive of financial scrutiny and accountability. A Chairperson should have strong leadership skills (e.g. competence, firmness, honesty, dependability, objectivity) and knowledgeable in the matters of PACs She/he should have the ability to articulate the non- partisan objective of the Committee and ensure that members have a shared understanding of this objective She/he should have the ability to manage all PAC’s processes including meetings and hearings 32

Chairperson’s roles & responsibilitiesA PAC should develop a clear written statement describing the role and responsibilities of a Chairperson; A PAC should develop a performance contract for the Chairperson, with clearly stated objectives, outputs and performance indicators Resources A PAC must have its own budget, adequate to cover its personnel and other operational costs, training and capacity building costs, as well as costs associated with hearings, publication of its reports and sourcing external expert advice where required A PAC must have skilled and qualified support staff, especially a Clerk and research staff There must be adequate and appropriate working space dedicated for a PAC to conduct its work comfortably; and accommodate the public and media during open PAC meetings and public hearings 33

Meetings A PAC should schedule and hold sufficient and regular meetings to discharge its responsibilities PAC Meetings should be open to the public and media PAC meetings recorded and minutes of the meetings made available to the public and media Relationship with the SAI A PAC should maintain a good working relationship with the SAI and the Rules and/Acts of Parliament should set the rules of engagement for PAC-SAI relationship. This relationship should in no way compromise the independence of the SAI The independence of the SAI should be assured so that audit priorities are set objectively, and audit results are reported fairly, factually and objectively Audit results should be presented expeditiously in reports that are user-friendly and easy to read SAI should brief the PAC on the key findings of the audit, particularly on the areas that were identified as requiring corrective action The AG should attend all hearings as an Expert witness 34

Public Hearings Hearings should be open to the public and media A PAC should set clear objectives and work plan for hearings Full verbatim transcript and summary minutes of hearings must be made available for public distribution A PAC must hold briefing sessions with the AG prior to the hearing The primary witness called before the Committee should be a senior public official (an Accounting Officer) Reports Committee reports should ideally represent unanimous agreement, but if not, should reflect the minority opinion/report Draft reports must be debated within the Committee before finalisation Final Committee reports must be tabled in Parliament before they can be made available to any government minister Final Committee reports are debated in House following the tabling. The reports should then be approved by Parliament during the plenary sessions giving it the endorsement of the whole House. 35

Follow up A PAC must have documented formal procedure on following up on Committee recommendations PerformanceA PAC must have a performance measurement framework to assess the Committee’s effectiveness/performance 36

In Conclusion “Although we all know that no one-size-fits-all model for an effective PAC but Regional networking is key to an effective PAC”. 37

THANK YOU AHSANTE SANA 38