State of the Nation Address 2022
State of the Nation Address 2022
The recommendation to amend the Political Party Funding Act to criminalise donations to political parties in the expectation of access to procurement tenders or contracts is accepted. This amendment will be made alongside other consequential amendments that will be required following the approval of the Electoral Amendment Bill currently before Parliament.
Noting that parts of the electoral reforms proposed by the Commission are currently under consideration in Parliament in relation to the Electoral Laws Amendment Bill, and considering that Parliament has a court-prescribed deadline to approve the Bill by 10 December 2022, it will be necessary to await the finalisation of the Bill before determining whether it satisfies the concerns raised by the Commission.
Noting that parts of the electoral reforms proposed by the Commission are currently under consideration in Parliament in relation to the Electoral Laws Amendment Bill, and considering that Parliament has a court-prescribed deadline to approve the Bill by 10 December 2022, it will be necessary to await the finalisation of the Bill before determining whether it satisfies the concerns raised by the Commission.
The Department of Justice has commenced a review of the Protected Disclosures Act and Witness Protection Act to, among other things, give effect to the following recommendations: ensure whistle-blowers receive the protections afforded by section 32(2) of the UN Convention Against Corruption.
The Department of Justice has commenced a review of the Protected Disclosures Act and Witness Protection Act to, among other things, give effect to the following recommendations: whistle-blowers to be afforded immunity from criminal or civil action arising from honest disclosures.
The Department of Justice has commenced a review of the Protected Disclosures Act and Witness Protection Act to, among other things, give effect to the following recommendations: the possible award of a proportion of funds recovered to the whistle-blower provided that the information disclosed has been material in recovering funds.
The Department of Justice and Constitutional Development will research possible legislative provisions for the creation of a statutory offence for the abuse of public power. This work will be finalised by mid-December 2023.
The recommendation to amend the Prevention and Combating of Corrupt Activities Act on the failure of persons or entities to prevent bribery will be included in the Judicial Matters Amendment Bill, which will be submitted to Cabinet in the latter half of 2022.
The South African Law Reform Commission (SALRC) is considering deferred prosecution agreements as part of its review of the criminal justice system. This is a broad investigation that seeks to ensure efficiency in the adjudication and finalisation of criminal cases. It is expected to be finalised towards the end of the 2023/24 financial year. Deferred prosecution agreements will receive attention, in this review, during the current financial year.
The Department of Justice and Constitutional Development has been directed to undertake research on the creation of an offence of political or constitutional malpractice. It will be completed by December 2023.
The National Anti-Corruption Advisory Council (NACAC) will, in the course of its work to advise on strengthening the country’s anti-corruption institutional arrangements, consider the detailed recommendations of the Commission on the establishment of an ‘Anti-State Capture and Corruption Commission’ and a ‘Public Procurement Anti-Corruption Agency’. Based on the advice of the NACAC and the outcomes of the review of South Africa’s anti-corruption architecture by the Department of Justice, a comprehensive proposal on an effective and integrated anti-corruption institutional framework will be produced for public consultation, finalisation and implementation. To further strengthen the current anti-corruption capabilities, the Investigating Directorate (ID) will be established as a permanent entity within the National Prosecuting Authority (NPA) and ID investigators will be provided with the requisite criminal investigatory powers as contemplated in the Criminal Procedure Act No. 51 of 1977. To address concerns with respect to the independence of the NPA, legislative amendments will be introduced to ensure greater transparency and consultation in the process for selection and appointment of the National Director of Public Prosecutions (NDPP), drawing on the process adopted for the selection of the current NDPP. Work will be undertaken to clarify the Minister's 'final responsibility' over the NPA as set out in section 33 of the NPA Act and settling aspects related to the NPA’s financial and administrative independence.
The National Anti-Corruption Advisory Council (NACAC) will, in the course of its work to advise on strengthening the country’s anti-corruption institutional arrangements, consider the detailed recommendations of the Commission on the establishment of an ‘Anti-State Capture and Corruption Commission’ and a ‘Public Procurement Anti-Corruption Agency’. Based on the advice of the NACAC and the outcomes of the review of South Africa’s anti-corruption architecture by the Department of Justice, a comprehensive proposal on an effective and integrated anti-corruption institutional framework will be produced for public consultation, finalisation and implementation. To further strengthen the current anti-corruption capabilities, the Investigating Directorate (ID) will be established as a permanent entity within the National Prosecuting Authority (NPA) and ID investigators will be provided with the requisite criminal investigatory powers as contemplated in the Criminal Procedure Act, Act No. 51 of 1977. To address concerns with respect to the independence of the NPA, legislative amendments will be introduced to ensure greater transparency and consultation in the process for selection and appointment of the National Director of Public Prosecutions (NDPP), drawing on the process adopted for the selection of the current NDPP. Work will be undertaken to clarify the Minister's 'final responsibility' over the NPA as set out in section 33 of the NPA Act and settling aspects related to the NPA’s financial and administrative independence.
Government accepts the recommendations on the need for a process for the appointment of boards at state-owned enterprises that is not open to manipulation, including the involvement of independent panels with appropriate technical expertise to recommend suitable candidates to the relevant executive authority. This process would need to take due regard of any legislation relevant to the particular entity. Provision will be made in the final ‘Guide for the Appointment of Persons to Boards and Chief Executive Officers of State-Owned and State-Controlled Institutions’ for independent panels of relevant stakeholders and experts to play a role in nominating suitable candidates to the relevant Minister. It is anticipated that the guide will be finalised in the 2023/24 financial year.
Government accepts the recommendations on the need for a process for the appointment of boards at state-owned enterprises that is not open to manipulation, including the involvement of independent panels with appropriate technical expertise to recommend suitable candidates to the relevant executive authority. This process would need to take due regard of any legislation relevant to the particular entity. Provision will be made in the final ‘Guide for the Appointment of Persons to Boards and Chief Executive Officers of State-Owned and State-Controlled Institutions’ for independent panels of relevant stakeholders and experts to play a role in nominating suitable candidates to the relevant Minister. It is anticipated that the guide will be finalised in the 2023/24 financial year.
The recommendation to amend the Companies Act so as to permit applications [for a director to be declared delinquent] to be brought even after two years is accepted and will form part of a review of the Companies Act that is expected to be concluded in the third quarter of 2023.
The Financial Intelligence Centre (FIC) has appointed attorneys to conduct an urgent independent review of the effectiveness of the current regulatory reporting regime under the FIC Act. It will also undertake a review of what banks had reported in relation to possible state capture transactions, what the FIC had done with the reports, what referrals the FIC had made to law enforcement agencies and what the law enforcement agencies had done with such referrals. The FIC briefed the attorneys on 26 August 2022 and is awaiting the project plan from the attorneys, which will include the duration of the review.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.
With respect to the recommendation that banks be required to follow a fair process when considering the closure of a client's accounts, National Treasury will review whether the current standards need to be strengthened to better protect retail customers from bank closures from a financial inclusion perspective, to the extent that they comply with anti-money laundering legislation and other applicable laws.
Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring project deliverables are included in business plans and effectively monitored.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the establishment of a professional body to which all officials who work in the area of public procurement should belong.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to setting standards of transparency for inclusion in every procurement system.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to protecting Accounting Officers or Accounting Authorities from criminal or civil liability for anything done in good faith unless such person acts negligently.
The centralisation of procurement will be pursued only where it is feasible and where the benefits are likely to outweigh the costs in terms of reduced flexibility and departmental accountability for spending, delivery and outcomes. A return to a fully centralised system is unlikely to improve the integrity and efficacy of procurement. However, it is recognised that extreme decentralisation has also made the procurement system more vulnerable. A multi-pronged approach is required, which builds the state’s capacity in transversal contracts, reduces fragmentation, consolidates legislation, ensures enhanced regulatory and oversight capacity, and enhances transparency.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the harmonisation of the legislation applying to public procurement.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to better guidance and training of public procurement officials.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to regulations to provide clear guidance on the processes to be followed when procuring from a sole source. It should be noted that there are certain goods and services that are provided by limited suppliers due to the uniqueness of the product or service they provide. While it is necessary to tighten regulations with respect to sole providers, it is not feasible to completely do away with these types of deviations.
Measures to prevent the cession of rights by tender contractors unless disclosed in bid documents should make provision for instances where amendments to company ownership, such as mergers and acquisitions, make the cession of rights necessary and legally permissible.
Government is considering – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – the recommendation that no service provider may be awarded a tender or may conclude any contract with a public institution unless it has produced proof of relevant qualifications, skills experience or expertise required to perform the work. It is intended that this legislation be sent to Parliament before the end of this financial year.
Recommendations that are covered under existing rules, and therefore do not require further action, include the use of implementing agents, the use of transfer payments, re-prioritisation of budgets, oversight responsibilities of officials and structures, ensuring adequate accountability, and the keeping of reliable financial records.
Recommendations that are covered under existing rules, and therefore do not require further action, include standardised guidelines for the appointment of implementing agents.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.
Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring feasibility reports and business plans are available and approved prior to any funds being transferred to a service provider.
The National Treasury has initiated the process to amend the SARS Act to implement the recommendations of the Nugent Commission, including providing for an open, transparent and competitive process for the appointment of the SARS Commissioner and the appointment of adequate oversight mechanisms such as an Inspector-General. Legislation will be tabled by June 2023.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to ensuring compliance with transformation imperatives.
Government is giving consideration – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – to prohibiting the awarding of a tender unless the responsible official has satisfied themselves that the service provider is qualified. It is intended that this legislation be sent to Parliament before the end of this financial year.
Recommendations that are covered under existing rules, and therefore do not require further action, include noting the recipient of the transferred funds in departments’ financial statements to enable consequence management where funds have not been used for the allocated purpose.
The review of the respective roles of the Auditor-General and private auditors, as well as recommendations on the public-sector audit committees, are expected to be completed by 30 September 2023.
This is no longer relevant given changes in the accounting rules.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to institutionalising lifestyle audits for all senior managers and officials involved in supply chain management.
To ensure that Parliament is sufficiently resourced to hold the Executive to account, the National Treasury will engage with Parliament to determine the most appropriate way to give effect to the Commission’s recommendations on the funding of Parliament.
To ensure that Parliament is sufficiently resourced to hold the Executive to account, the National Treasury will engage with Parliament to determine the most appropriate way to give effect to the Commission’s recommendations on the funding of Parliament.
General Intelligence Laws Amendment Bill will be tabled to Parliament in the third quarter of 2022. This, together with the new National Intelligence Policy and Strategy documents which are being tabled at the National Security Council, take forward the recommendations of the High-Level Review Panel and the White Paper on Intelligence. This is under consideration as part of consultation reforms to the whistle-blower protection framework.
Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring provincial treasuries have consequence management mechanisms in place for recalcitrant a head of department or chief financial officer.
The matter of statutory frameworks for financial information-sharing partnerships has been included in the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, which has been tabled in Parliament and is currently before the NA Finance Portfolio Committee. This Bill aims to address the deficiencies identified by the Financial Action Task Force (FATF) and International Monetary Fund in their mutual evaluation of South Africa in 2021.
The matter of statutory frameworks for financial information-sharing partnerships has been included in the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, which has been tabled in Parliament and is currently before the NA Finance Portfolio Committee. This Bill aims to address the deficiencies identified by the Financial Action Task Force (FATF) and International Monetary Fund in their mutual evaluation of South Africa in 2021.
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to a Code of Conduct setting out the ethical standards that apply in the procurement of goods and services for the public.
Parliament is developing its own response to the Commission.
Parliament is developing its own response to the Commission.
Since the recommendation for the direct election of the President would require constitutional amendments, it is a matter that should be considered by the various political parties represented in Parliament and by the Parliament’s Joint Constitutional Review Committee.
Parliament is developing its own response to the Commission.
Parliament is developing its own response to the Commission.
The implementation of lifestyle audits for members of the National Executive is in process and is being managed by the Office of the Director-General in the Presidency.
A decision on the establishment of a commission of inquiry into PRASA will be held in abeyance until the completion of the investigations underway by the Directorate for Priority Crime Investigation and the Special Investigating Unit (SIU), and the review by the PRASA board. A determination will then be made on whether these processes have sufficiently addressed the matters raised by the Commission and whether a commission of inquiry would serve that purpose. A proclamation will be issued to broaden the scope and set timeframes for an expanded SIU investigation into PRASA based on the evidence before the State Capture Commission. Additional dedicated resources will be brought in to augment the existing investigators who are also looking into other state-owned enterprises.
The State Security Agency is reviewing human resource directives to ensure they are in line with the Commission’s recommendations on recruitment criteria. This is expected to be completed by March 2023.
The new leadership at the State Security Agency has developed and is implementing a comprehensive response plan to address the recommendations of the Commission. This response plan is being driven by a multi-disciplinary team made up of internal resources and through enlisted expertise in restructuring and reforming organisations.
A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The amendment will also include provisions to strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.
A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The amendment will also include provisions to strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.
The new leadership at the State Security Agency has developed and is implementing a comprehensive response plan to address the recommendations of the Commission. It is factoring in the recommendations contained in the Annual Report of the Joint Standing Committee on Intelligence for the financial year ending 31 March 2020, including the period up to December 2020.
The peddling of fabricated information has been counteracted by the resuscitation of systems and control measures in the State Security Agency.
The State Security Agency has finalised and is implementing new gun control directives for the agency in line with applicable laws.
A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The Bill will amend the National Strategic Intelligence Act (39 of 1994), Intelligence Services Act (65 of 2002) and other relevant intelligence laws so as to, among others, strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.
A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The Bill will amend the National Strategic Intelligence Act (39 of 1994), Intelligence Services Act (65 of 2002) and other relevant Intelligence laws so as to, among others, strengthen the oversight of the intelligence agencies by bodies such as the Inspector General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.
A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The Bill will amend the National Strategic Intelligence Act (39 of 1994), Intelligence Services Act (65 of 2002) and other relevant Intelligence laws so as to, among others, strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.
National Treasury is working with the Auditor-General of South Africa (AGSA) and the State Security Agency (SSA) on tightening financial controls, especially with respect to cash, and improving accountability through a multi-pronged audit process (involving the AGSA, the Inspector-General of Intelligence and SSA Internal Audit).
No member of the Executive responsible for intelligence, whether the President, Minister or Deputy Minister, may be involved in the operational matters of the State Security Agency. The review of the Intelligence Services Act that is currently underway will consider how to give practical effect to this principle.
New National Security Policy and Strategy documents have been drafted and presented to the National Security Council. The policy, which returns to the principles of the White Paper on Intelligence, will be recommended to Parliament for the commencement of public consultations before the end of this financial year.
All investigations that have been initiated by Project Veza were handed over to an independent forensic investigation firm. Several reports have been completed and submitted to the Director-General. The said reports were subsequently shared with the National Prosecuting Authority’s Investigative Directorate (ID) for further investigations and possible prosecutions. All future reports from the forensic firm will follow this approach. Consequence management is already being implemented via disciplinary actions.
The new leadership at the State Security Agency has developed and is implementing a comprehensive response plan to address the recommendations of the Commission. It is factoring in the recommendations contained in the Annual Report of the Joint Standing Committee on Intelligence (JSCI) for the financial year ending 31 March 2020, including the period up to December 2020.[1] This response plan is being driven by a multi-disciplinary team made up of internal resources and through enlisted expertise in restructuring and reforming organisations.