ACDP Parliamentary newsletter - 12 November 2003
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In this issue:
1. Medium-term budget conservative, but optimistic
2. Error in ACDP Leadership and Governance Framework Bill speech
3. Is SA government playing delay game in Zimababwe?
4. Diabetes awareness crucial to fighting the disease
5. Investigate liquidation corruption, says ACDP
6. ACDP supports Judicial Matters Amendment Bill
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1. Medium-term budget conservative, but optimistic
12 November 2003
The medium-term budget policy statement is conservative but optimistic in terms of growth and economic stability, says African Christian Democratic Party spokesperson on finance Mr Adriaan Blaas.
"Lower inflation, reduced interest rates and the strong Rand could not be ignored by the treasury in revisiting the budget and although the Minister of Finance remains optimistic, small adjustments were required.
"We are happy that the focus has remained on addressing the needs of the poor by focussing on job creation but we will look carefully at the increasing tendency towards gradual increases in social support. It is vital that the state does not create a system of dependence rather than empowering people to become self-sufficient.
"With specific reference to the adjusted Estimates of National Expenditure, there is an increase from R331.0 billion to R331.5 billion in the bottom line, but a more detailed study is required to understand real increases in savings and details regarding deployment of funds," Mr Blaas said.
Revenue projections were revised downwards by R4.6 billion because of reduced income from taxes. The three year forecast to 2006/2007 however indicates a main budget revenue of 24.8% of GDP for consecutive years.
"No major tax incentives or surprises are expected, but indications are that the tax base will be refined and some tax regimes are still under discussion. We welcome the extension of the amnesty date for repatriation of illegal foreign investments as this may help to further increase the tax base and help to reduce the budget deficit.
"Medium-term expectations are conservative and optimistic, with fiscal policies supporting actions to reduce unemployment and ensure social support, however capacity to deliver on these may be a constraint.
"Of concern is the short to medium term reduction on defence expenditure. At present South African Defence expenditure is lower than comparable countries and lower than the internationally accepted norm of 1.8 - 2% of GDP.
"Although they received R500 million, the bottom line was reduced from R20.1 billion to R19.8 billion. For a department that has a lower than basic needs budget and considering what is expected of it, this is of major concern," Mr Blaas said.
"In general, the medium-term framework is consistent with the stable economy that we experience in South Africa at the moment and there are no indications of major surprises although the increasing tendency in the deficit of the budget should be closely watched," Mr Blaas said.
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2. Error in ACDP Leadership and Governance Framework Bill speech
Please note:
There was an error in the speech by ACDP MP Advocate Mighty Madasa on the Traditional Leadership and Governance Framework Bill in the National Assembly on Tuesday 11 November. Adv Madasa did in fact not abstain from the vote, but voted in favour of the Bill.
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3. Is SA government playing delay game in Zimababwe?
African Christian Democratic Party Foreign Affairs spokesperson Advocate Mighty Madasa has questioned whether the South African government is playing a delaying game in resolving the political crisis in Zimbabwe.
Questioning the Deputy Minister of Foreign Affairs on progress about NEPAD and AU during a portfolio committee briefing in Parliament on Tuesday, Advocate Madasa said that there is a belief that the government and other former liberation movements that are now ruling parties in the region prefer a suitable successor to be found first.
"There is a belief that that these groups would prefer a successor other than Morgan Tsvangirai to be found before solving the problem," Adv Madasa said.
According to the Minister, he is not aware of such allegations and that it was the government's position to leave the matter to Zimbabweans, accepting any government as long as it was a popular choice.
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4. Diabetes awareness crucial to fighting the disease
Response to Minister of Health Statement re Diabetes Week
The ACDP applauds efforts by the Minister of Health and her department, to create awareness around Diabetes and welcomes efforts during Diabetes Week by health facilities. We also welcome the agreement between government and Eli-Lilly to implement a diabetes training programme for health professionals in all Provinces starting with Mpumalanga, Eastern Cape and Limpopo.
Diabetes mellitus ranks third in South Africa after (ischaemic)heart disease and cancer in terms of morbidity and mortality, and is a growing problem. The prevalence in adults is 4% for whites, 5-8% for blacks and 13% for Indians. While changing eating habits and sedentary lifestyles could be the reason for the increase in diabetes, it is curious that this increase is in both rural and urban areas.
We join the Health Minister in encouraging South Africans to value their health and pursue healthy lifestyles.
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5. Investigate liquidation corruption, says ACDP
Statement by Steev Swart
The African Christian Democratic Party calls for a full enquiry into allegations of nepotism and widespread corruption in the liquidation industry. Such an enquiry should be based on the Jali Judicial Commission into alleged corruption in the Correctional Services department.
According to the Chief State Law Advisor, Mr Enver Daniels, who is acting head of the Masters Business Unit, corruption is so widespread that liquidators and civil servants 'often see nothing wrong with it'. Mr Daniels says that incentives are passed by corrupt liquidators to equally corrupt staff in the Master's Business Unit. He was 'shocked and surprised' at the extent of corruption in the unit, finding 'a sense, almost of lawlessness' at the Master's Office in Pretoria.
The ACDP would also like to know whether any impropriety was involved in the transfer of Mr Tshishonga away from the Master's Business Unit, following his allegations of nepotism against the Justice Minister.
These allegations are of a very serious nature and require a full and comprehensive independent investigation. If the Hefer commission of inquiry can be held at great public expense to investigate spy claims, surely it is in the public's interest that a commission be set up to investigate this industry - worth R18-billion annually.
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6. ACDP supports Judicial Matters Amendment Bill
The main purpose of the Bill is to encompass in a single Bill a variety of amendments to laws administered by the Department of Justice and Constitutional Development and which amendments do not require individual Amendment Acts.
These amendments mainly address certain problem areas which have arisen in practice. The Bill also contains certain amendments which are of a more substantial nature.
Whilst there are various provisions contained in the Bill, due to time constraints, I will only focus on certain aspects thereof. The ACDP supports the provisions intending to amend section 35B of the Insolvency Act, 1936 (Act No. 24 of 1936), so as to regulate agreements providing for termination and netting of certain unperformed obligations and obligations in respect of assets transferred as collateral security in the event of sequestration.
The amendment will allay concerns was that the provisions of section 35B fall short of expectations and that many of the international banks and securities firms operating in South Africa are still constrained in the taking on of larger exposures because of legal concerns regarding the ambit and effectiveness of the current section 35B. The proposed amendment will allow for agreements that provide for termination and netting of specified obligations. Market participants require certainty regarding the effect of netting in order to adjust their market positions without delay.
We also support the amendment to section 60 of the Criminal Procedure Act, 1977 (Act No. 51 of 1977 which compels the court, before reaching a decision on any bail application, to take a pre-trial services report into account, if such a report is available. The purpose of the pre-trial services report is to assist the court in making a decision regarding the release of a person on bail. We support this clause as we found this process very effective during our oversight visit to the Port Elizabeth Courts.
We support the insertion of a new provision in the Criminal Procedure Act, 1977, imposing a duty on the court, at sentencing stage, to inform a complainant or relative of a complainant in a murder case of his or her right to make representations to a Parole Board when the parole of the prisoner is considered. This is an important addition in view of the approach to involve victims of crime to a greater degree in the criminal justice process.
The Criminal Procedure Act, 1977, is to be amended to provide that the National Director of Public Prosecutions must, within a specific time, submit a report to the Minister responsible for the administration of justice containing particulars in respect of each accused whose trial has not yet commenced and who has been in custody for a particular period, which report must be tabled in Parliament. This clause will assist in monitoring and reducing the number of awaiting trial prisoners, and have a positive knock-on effect on the over-crowded conditions in prisons.
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