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Review of the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No. 9 of 2009)

Review of the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No. 9 of 2009). 16 April 2009 - Act came into operation.

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Review of the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No. 9 of 2009)

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  1. Review of the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No. 9 of 2009)

  2. 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. • the Committee is required to evaluate the application of the legislation including, but not limited to: • time frames and sequencing associated with different financial instruments and Bills; • procedures to be developed in the rules; and • functions and management of the Parliamentary Budget Office (PBO) Background Background

  3. The Standing Committee on Finance – in terms of the resolution – was mandated to: • report on any other matter related to the implementation of the Act; and • Required to confer with the Standing Committee on Appropriations; and • report to the National Assembly by 21 September 2012 on the progress that has been made. • 20 September 2012 – Committee reports (ATC) on progress • Submission received from KZN Provincial Legislature Background (cont.) Background

  4. 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 • Fiscal Framework, DORB & Appropriation Bill – sections 7 to 10 – sequencing • Revenue Bills – section 11 • Adjustments budget – section 12

  5. 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.

  6. 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 FMPA?

  7. Functions and management of the PBO • Aligned to the FMPA • Clarity on responsibility of Director for the financial management and human resource management • Role of the Executive Authority – initiate process of appointment and role in appointuing acting Director. • 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 board to consult about structure and conditions of service of PBO • Executive Authority to appoint person to act as Director when vacancy exist.

  8. 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). Other matters amendments

  9. 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

  10. 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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