1 / 14

DEFENCE SPECIAL ACCOUNT AMENDMENT BILL

DEFENCE SPECIAL ACCOUNT AMENDMENT BILL. BRIEFING TO PORTFOLIO COMMITTEE ON DEFENCE 17 MAY 2005. Mr B.J. Engelbrecht (D Bud) Mr S.H. Njikela (Dep D Legal Support). SCOPE OF BRIEFING. Introduction. Aim. Discussion. Purpose of Amendments. Procedures. Terminology.

walt
Download Presentation

DEFENCE SPECIAL ACCOUNT AMENDMENT BILL

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. DEFENCE SPECIAL ACCOUNT AMENDMENT BILL BRIEFING TO PORTFOLIO COMMITTEE ON DEFENCE 17 MAY 2005 Mr B.J. Engelbrecht (D Bud) Mr S.H. Njikela (Dep D Legal Support) C:\DSA_ACT_AMEND.ppt

  2. SCOPE OF BRIEFING • Introduction. • Aim. • Discussion. • Purpose of Amendments. • Procedures. • Terminology. • Department of State Expenditure. • Acts of Parliament. • Gender. • Amended sections. • Consultation • Implications. • Process • Summary. • Recommendation. C:\DSA_ACT_AMEND.ppt

  3. INTRODUCTION • National Treasury request. • Focus - Oversight role of the Minister of Finance. • Defence – secondary objective – updating the Act. AIM The aim of this briefing is to obtain the support of the Portfolio Committee on Defence for the recommended changes to the Defence Special Account Act, Act no 6 of 1974 in order to bring this Act in line with the gist of the Public Finance Management Act. C:\DSA_ACT_AMEND.ppt

  4. History of the SDA • Defence Special Equipment Act 1952, Act No 8 of 1952. • Main purpose - purchasing main weapon equipment and to schedule the cost over years. • Defence Special Account Act, No 6 of 1974, (amended in 1981 and 1995). • Utilised for defraying expenditure where the following conditions exist: • Procurement of “Armament”. • Procurement of items usually subjected to extended and uncertain lead times. • The purchase of military equipment. • Sensitive activities. • Strategic defence capabilities/weapon systems. C:\DSA_ACT_AMEND.ppt

  5. Matériel Category 1 • Matériel designed for military use, or conforms to military specifications. • Normally obtained by means of an acquisition process, utilising Special Defence Account funds (Folio 02). Category 2 • Matériel designed and developed primarily for commercial use (commercially available in the RSA). • These items may be used, operated and supported without any adaptation in the military operational environment. • Is obtained by means of a procurement process, utilising General Defence Account funds (Folio 01). C:\DSA_ACT_AMEND.ppt

  6. PURPOSE OF AMENDMENTS • Bring in line with specific Acts of Parliament. • Remove obsolete references/procedures • Updating references/procedures. • Comply with National Treasury’s recommendations. C:\DSA_ACT_AMEND.ppt

  7. PROCEDURES • Section 1A: Acc Off may with the prior approval of the Minister of Finance “… enter into commitments for the expenditure from the account for which money in the account may be utilised in terms of section 2(2) but for which no money has been provided in the account, and which in the aggregate does not exceed the amount shown in the estimates of expenditure …”. • Section 2(2)(a): “The money in the account shall with the approval of the Minister of Finance be utilise to …” C:\DSA_ACT_AMEND.ppt

  8. TERMINOLOGY • “Armaments” replaced with “defence matériel” • “Department of State Expenditure” replaced with “National Treasury”. • “Treasury” is replaced with “National Treasury” • “Public Debt Commissioners” replaced with “… corporation established by section 2 of the Corporation for Public Deposits Act, 1984 …”. C:\DSA_ACT_AMEND.ppt

  9. ACTS • Auditor General Act, Act No. 52 of 1989” replaced with “Public Audit Act, Act No. 25 of 2004”. • “Armaments Development andProduction Act, 1968 (Act No. 57 of 1968)” replaced with “Armaments Corporation of South Africa Limited Act, 2003 (Act No. 51 of 2003)”. • Defence Act: “44 of 1957” replaced with “42 of 2002”. • “Exchequer Act, 1975 (Act No. 66 of 1975)” replaced with “Public Finance Management Act, 1999 (Act No. 1 of 1999)”. C:\DSA_ACT_AMEND.ppt

  10. GENDER SECTIONS AMENDED • 1(a), (b), and (cA) - amend. • 1A - delete. • 2(1)(a), (b) and (c) – amend. • 2(2)(a) and (b) – amend. • 2(4) – amend. • 3 – amend. C:\DSA_ACT_AMEND.ppt

  11. CONSULTATIONS • National Treasury. • Auditor General. • State Law Advisor IMPLICATIONS • Organisational and personnel – None • Financial - none. • Minister of Finance no longer directly involved. C:\DSA_ACT_AMEND.ppt

  12. CONCLUSION • DSA Act passed in 1974. • Last amended in 1995. • Does not reflect spirit of the PFMA. • Refers to processes no longer valid. • Refers to repealed / outdated Acts of Parliament. • Amendments necessary to bring DSA Act in line with new developments in RSA legislation. C:\DSA_ACT_AMEND.ppt

  13. RECOMMENDATION It is recommended that the Portfolio Committee on Defence supports the amendments and Defence’s endeavours to get the Defence Special Account Amendment Bill passed by Parliament. C:\DSA_ACT_AMEND.ppt

  14. Questions and Discussion C:\DSA_ACT_AMEND.ppt

More Related