African Renaissance & International Co-operation Fund Bill: briefing

Meeting report

FOREIGN AFFAIRS PORTFOLIO COMMITTEE
27 September 2000
AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND BILL

Relevant Document:
African Renaissance and International Co-Operation Fund Bill [B65-2000]

SUMMARY
The intention of Bill is to provide for the establishment of the African Renaissance and International Co-Operation Fund for the purpose of enhancing international co-operation with and on the African Continent and to reaffirm South Africa's commitment to Africa. The Bill repeals the Economic Cooperation Promotion of Loan Fund Act of 1968. The new Fund would provide funding for projects approved by the Minister of Foreign Affairs. The International Cooperation Fund would consist of money appropriated by the Parliament for the fund, surplus from the previous fund, repayments of loans made from the funds, interest accrued on any such loans and money received from donors. An Advisory Committee would be established by the Minister of Finance, which would make recommendations to the Minister on the disbursement of funds through loans or other financial assistance. The Director General must establish a Secretariat and appoint members to assist with the disbursement of the funds and administration of projects relating to the fund. An amendment was suggested and accepted by Mr Pityana. There was general concern over the money loaned out in the previous fund.

MINUTES
Mr D J Sithole (ANC) was nominated and elected as Acting Chairperson. He handed over to the Director General, Mr Sipho Pityana.

Mr Pityana presented the Bill and highlighted the following points:
· The previous government developed bilateral relations between South Africa and other countries to buy friends because of its isolation
· The emphasis was now on establishing multinational relations.
· The International Cooperation Fund would consist of money appropriated by the Parliament, surplus from the previous fund, repayments of loans made from the funds, interest accrued on any such loans and money received from donors.
· An Advisory Committee would be established by the Minister of Finance, which would make recommendations to the Foreign Affairs Minister on the disbursement of funds through loans or other financial assistance.
· The Minister may in consultation with the Minister of Finance and on the recommendation of the Advisory Committee write off or convert to a grant any outstanding debts owed to the previous fund.
· The objects of the Fund would include enhancing co-operation between RSA and other countries, especially African countries, the promotion of democracy and good governance, the prevention and resolution of conflict and socio-economic development and integration alongside humanitarian assistance and human resource development. An example would be assistance granted to Mozambique in the recent floods
· The funds must be made available to advance the regeneration of the region
· The Fund is subject to the directions of the Minister and under the control of the Director-General who must keep proper records and accounts of all payments into and out of the fund and must prepare a statement of income and expenditure and a balance sheet annually as at 31 March for auditing by the Auditor General
· The Director General must establish a Secretariat and appoint members consisting of officers to assist with the disbursement of the funds and administration of projects relating to the fund

Discussion
Ms Hajaij (ANC) stated that the Act was very welcome in putting forward the vision of African Renaissance. She suggested that the word "monitoring" be added to Clause 6 (2) as follows:
"The Director General must establish a Secretariat and appoint members consisting of officers to assist with the disbursement of the funds and monitoring administration of projects relating to the Fund."

Mr Pityana accepted the recommendation.

Ms Mahomed (ANC) asked the Director-General if the agreements between governments that were signed regarding the previous fund could be made available to the Committee. She wondered whether the inability of the state to recover money loaned from the previous fund reflected very negatively in the audit reports. She stated that a need for intervention may be necessary to avoid wasteful undertakings in the future. She was also concerned about whether we were committed to retrieving the old money. She asked whether the new fund had new procedures in line with what was being done with the money.

Mr Charles Nqakula, Parliamentary Councillor to the President stated that this Act is the initial step and an important building block in the African century. He stated that the previous legislation and what had happened with the previous Fund should not be allowed to hinder future improvement. He stated that the new Fund would not be manipulated in the future and that it did have new procedures in line with its intention.

Mr Mulder (FF) enquired whether the disaster fund would be used to alleviate situations such as the floods in Mozambique or whether it was to be used to send the army into Mozambique.

Mr Pityana replied that the fund is in place for tragedies such as the Mozambiquean floods.

Mr Ramgobin (ANC) stated that he was unsure if the legislation with regard to funding made in 1988 was made with the intention to pay back. Rather it was made with the intention of buying in surrogate states. He compared it to asking the then President Matanzima to pay back. He felt that too much time was being wasted mulling over the money lent out and this time could be spent in the development of the African Renaissance. He stated that it is time for South Africa to put its money were its mouth is and move forward with political commitment in its role in the world community.

Mr Ditshetelo (UCDP) expressed concern over accepting money into the Fund from private donors who may have their own agenda.

Mr Pityana responded that those who donated money to the Fund would have to do so in the spirit of what the Fund intended. Donors would be aware of the context in which the fund was to be used and would donate only if they were satisfied with the interests of the fund.

The Chairperson stated that he hoped this Bill would provide the mechanism for the vision of African Renaissance.

Mr Pallo Jordan (ANC) asked if desirability could be finalised since there seemed to be consensus and the suggesting made by Ms Hajaij had been accepted.

Mr Mulder stated that he needed to take the amendment back to his caucus as a procedural factor before the Bill could be tabled.

The Chairperson conceded to this also stating that it would have to follow the parliamentary procedure. The meeting was adjourned.