1. 1 Presentation to Select Committee on Appropriation regarding sector analysis JULY 2014 BY MONGANA TAU

2. OVERVIEW OF THE COMMITTEE MANDATE 2 The Committee is established in terms of section 4(3) of the Money Bills Amendment Procedures and Related Matters Act (No. 9 of 2009) The Committee has the powers and functions conferred to it by the Constitution, legislation, Rules and resolutions of the House. Such powers and functions include considering and reporting on: Spending issues; Amendments to the Division of Revenue Bill, the Appropriation Bill, Supplementary Appropriation Bills and the Adjustment Appropriation Bill; Medium Term Budget Policy Statement; Recommendations of the Financial and Fiscal Commission; Reports on actual expenditure published by the National Treasury; and Any other related matter set out in the Money Bills Amendment Procedures and Related Matters Act, 2009.

3. Overview The situational analysis will focus on the internal environment of the Committee which is Parliament (comprising the two Houses – National Assembly and National Council of Provinces) as an institution and the external environment which is comprised of the three spheres of government (national sphere, provincial sphere and local sphere). 3 SITUATIONAL ANALYSIS

4. Vision To build an effective people’s Parliament that is responsive to the needs of the people and that is driven by the ideal of realising a better quality of life for all the people of South Africa. Mission As the freely elected representatives of the people of South Africa, our mission is to represent, and act as a voice of the people, in fulfilling our constitutional functions of passing laws and overseeing executive action. Strategic objectives The need to strengthen the oversight function and establish a strong culture of overseeing executive action; The need to further deepen and entrench democracy through increased public involvement and participation; The need to improve and widen the role of Parliament in international relations, co-operation and participation; The need to further build a united and democratic South Africa through strengthening co- operative government and to foster improved co-operation and relations; and The need to build an effective and efficient institution. 4 CURRENT PARLIAMENT STRATEGIC OBJECTIVES

5. SOURCE DOCUMENTS USED IN THE OVERSIGHT OF THE VARIOUS SPHERES National Development Plan National Treasury Quarterly Reports Auditor-General Reports Submissions made by Departments Committee Reports Financial Fiscal Commission Research documents Parliament Research documents 5

6. SALIENT FEATURES OF THE SECTOR 6 StrengthsOpportunities Medium Term Expenditure Framework Forward planning Revised equitable share of revenue formula Ensure funded mandates and proper planning Conditional grants to various spheres Opportunity for co-operative governance and intergovernmental relations where spheres support, monitor and evaluate each other

7. SALIENT FEATURES CONTINUED 7 WeaknessesChallenges Under spending and roll-oversCompromises service delivery Negative audit opinionsCompromises service delivery and public perception Withholding of fundsCompromises service delivery InterventionsCompromises service delivery and create unnecessary tensions Municipalities with low revenue baseLeads to unfunded mandates Spheres taking each other to courtsCompromises service delivery and create unnecessary tensions Weak intergovernmental relationsCompromises planning and service delivery Capacity constraintsCompromises service delivery Structural challenges within local government Led to the introduction of a number of programmes and interventions

8. ISSUES FOR CONSIDERATION DURING THE COMMITTEE STRATEGIC PLANNING How will the Committee ensure an equitable distribution of resources among the various spheres and also ensure that all mandates are funded ? How will the Committee ensure that current strengths translate into better service delivery for a better life ? How will the Committee carry out its legislative mandate within the context of cooperative governance and intergovernmental relations ? How will the Committee carry outs its oversight and also ensure public participation ? How will the Committee conduct its oversight to ensure efficient, effective and economic utilisation of the resources ? How can positive audit reports translate into quality service delivery? 8

9. THANK YOU KE A LEBOGA 9 THE END