Deputy Chairperson, members will have to bear with me - this is a rather longish reply. I would like to thank hon Feldman for the question.
As hon members are aware, Ministers and Deputy Ministers are required, in terms of the code of ethics for Members of Parliament and the Executive Members Ethics Act and code, to disclose details of their financial interests, assets and gifts received. Senior public servants from the level of director upwards are required to do the same in terms of the Public Service Regulations.
I am sure that you are aware that violations of the parliamentary code are handled by Parliament and have been dealt with effectively in the past. Complaints against violations of the executive ethics code can also be dealt with by the Public Protector.
As I reported in the National Assembly last week, the SA Revenue Service conducts investigations of people who appear to be living beyond their means. These investigations start on the basis of information obtained from various sources, including the Sars anticorruption and fraud hotline, the income tax returns a taxpayer submits to Sars and reports of suspicious activity from members of the public.
A lifestyle questionnaire is one method of obtaining information from a taxpayer and, together with other information sources, assists Sars in matching the lifestyle trends, income streams and the asset base of a taxpayer to what has been declared in an income tax return. The accumulated wealth has to be explained by the taxpayer for tax purposes. Any unexplained wealth is taxed.
The Compliance and Risk Unit within Sars conducts the risk analysis of taxpayer information. If there is a mismatch between what the taxpayer has declared and what Sars has found, the case is referred for an audit.
If it is confirmed that the taxpayer has evaded tax, penalties are levied, interest is charged and additional tax of up to 200% of the evaded tax is charged. Depending on the circumstances, the case may then be handed to Sars' criminal investigation department which then engages the SA Police Service and the Specialised Tax Unit for criminal prosecution within the National Prosecuting Authority.
More than 10 000 - in fact, to be precise, 17 420 - such audits have been conducted by Sars over the past two years. The Prevention and Combating of Corrupt Activities Act of 2004 also provides for an investigation into a person who appears to own property disproportionate to their income. This is in addition to the stringent Financial Intelligence Centre Act, Fica, requirements that compel individuals to disclose sources of income when they make large financial transactions.
In light of the above, Cabinet is not considering lifestyle audits for Ministers, Deputy Ministers and senior public servants, as there are already appropriate measures in place.
Deputy Chairperson, hon members of this august House, each and every one of us has a duty as public representatives to ensure that members of the public and our constituencies are aware of the regulatory framework designed to deter corruption. However, and more importantly, it is necessary that, as public representatives, we inform the public about all the means available to them as citizens to bring to the attention of the authorities any information that they might have that will bring to book anybody involved in corrupt activities of any kind. The more our people know about these measures and the more we exercise oversight as Parliament, or the NCOP, the better we will be able to restore public confidence as mentioned by the hon member. Thank you.
Madam Deputy Chair, in a lighter vein, I think the Deputy President referred to Parliament and the NCOP. Well, the NCOP is part of Parliament.
Yes, I know. Parliament is the NA and the NCOP.
Thank you, sir. We sometimes feel as if we are sidelined. I am sorry, Madam Deputy Chair, I am out of order. Please rule me out of order.
Hon Deputy President, you are absolutely right about Sars' mandate on lifestyle audits. That is absolutely true. Nevertheless, there is a requirement by law for us in this House and the other House to make certain declarations.
Now, if those declarations are made untruthfully, is there then no requirement on either our own political parties or somebody, other than Sars, to establish the veracity of that information?
Madam Deputy Chair, to the best of my knowledge, once members have made their declarations, one can click on the website to check that and, if one is in any doubt, yes indeed, the matter should be raised.
In the past, Parliament has dealt with many such cases. Members' salaries have been docked. If Parliament is merciful, a member may lose a week's earnings for not declaring interests fully.
Madam Deputy Chair, I would like to ask the Deputy President whether any political party or any individual, particularly those advocating a lifestyle audit, has made any indication to the President or any structures of government about their problems with the existing mechanisms, such as the asset disclosures for members. The impression must not be created that there are no mechanisms, as the Deputy President has clearly outlined them. There are also sanctions that are specified for nondisclosure.
Madam Deputy Chair, with all due respect, I missed essential parts of the question. Could the member perhaps please speak into the microphone?
Actually, hon member, I was about to ask you to please use your microphone; a recording is being done.
Madam Deputy Chair, the question was whether there are any individuals or political parties who have indicated that they have problems with the current mechanisms.
Deputy Chair, not that I am aware of. I don't think there is any political party or individual that has indicated unhappiness about existing measures. Of course, the general secretary of Cosatu has experienced what is called, in biblical language, "epiphanies". He has made a discovery of the term "lifestyle audit" and I don't think he was aware that this was, in fact, being conducted all along. He has also not told the general public which body should conduct such lifestyle audits. He seems to be suggesting that perhaps The Star or Cape Argus newspapers or something like that should do it. [Laughter.]
We are legislators. We must find measures that are enforceable by law by a properly authorised agency or body of state. Thank you.
Deputy Chair, the Deputy President has mentioned that a member might lose a week's income for nondisclosure of interest. I want to know from the Deputy President whether this question of penalties issued due to nondeclaration of interests is also going to apply to the Head of State, because the perception outside is that some of us are above the law. Thank you.
Deputy Chair, the law applies to all of us, right from the President down to ordinary citizens. As I have said, if there is any omission, the Public Protector is properly authorised to investigate the matter and produce a report and, on the basis of that report, the House can ... Of course, remember that the President is not a Member of Parliament; he is the First Citizen of the country. Thank you.
Deputy Chair, I would like to ask the Deputy President if the various admirable measures outlined failed to resolve the situation where a company owned by the ANC Youth League president has been granted more than R140 million worth of tenders for government building projects in Limpopo, despite the fact that the company complied with neither the required tax nor building regulations. Will any further action be taken by him, in line with the action that he took against the relevant organisation when they were disrupting school lessons that he reported on earlier? Thank you.
Deputy Chair, the answer is no because there are properly authorised agencies and bodies that deal with these kinds of matters. Tenders that are adjudicated upon by municipalities and so on have to be handled by the relevant agencies and bodies, and if there is something untoward, it will be handled by them. If we jump in by getting involved in such matters we may cause a stampede. The only way in which the President or I can be involved is by referring such matters to the relevant state organ for investigation and progression. Thank you.
Deputy Chair, I wonder whether the Deputy President thinks it strange that hon Feldman is also concerned about the lifestyle audit of Ministers and directors-general, when, not so long ago, his own president was fined and reprimanded by Parliament for not disclosing his directorship of a company when he was a Minister? Thank you.
Deputy Chair, I think that is a comment I don't have to respond to, as it is not a question. [Applause.]