Chair, Deputy President, Ministers and Deputy Ministers, and colleagues, as we are all aware, the procurement of goods and services, and the disposal and letting of assets by Parliament, must be done in compliance with section 217 as set out in Chapter 13 of the Constitution of the Republic of South Africa. This has to be read in conjunction with schedule 3 of the Financial Management of Parliament Act, referred to as FMPA in this statement. The Preferential Procurement Policy Framework Act and the Broad-Based Black Economic Empowerment Act must also be considered.
The draft Supply Chain Management Regulations were prescribed by the executive authority and published for public comment in the Government Gazette of 4 February 2013, as required by the Financial Management of Parliament Act. These regulations may only come into effect after approval by Parliament; hence it is presented here today.
The Speaker of the NA and the Chairperson of the NCOP referred the draft Supply Chain Management Regulations in the ATC on 9 May 2013, to the Interim Joint Committee on Scrutiny of Delegated Legislation, as well as the Standing and Select Committees on Finance. The two committees considered comments from internal stakeholders and also considered the report on 22 and 24 October 2013.
I must indicate to the House that the DA decided to walk out of the first meeting, citing party activities. [Interjections.] They were led by the shadow minister, so what can you expect? They missed an opportunity. [Interjections.] In their desperate attempt to hold back our development agenda, the DA came to the second meeting to object to the reports being approved.
I must indicate that notwithstanding their objection, in fulfilling their mandate the two finance committees made the following discovery. In their absence, we established that the regulations provide for the definition of the conflict of interest. It is clearly defined and structured to accommodate all examples of business relationships, including those of the Parliamentary employee and his/her family. I must indicate that we also established that this definition is not a closed list.
In the absence of the DA, we also established that the regulations ensure that the accounting officer is empowered to exercise discretion regarding cancelling a bid when there are unforeseen eventualities.
I must also emphasise that this draft does not repeal the FMPA provision of prohibiting accounting officers from making fruitless and wasteful, unauthorised, or irregular expenditure.
In the absence of the DA, the two committees established that the regulations provide for the framework for appointment of the Bid Adjudication Committee and the functions of the committee.
In addition, the committees scrutinised whether there had been any unauthorised retrospective operations and saw to it that the regulations conformed to the objects of the principal Act.
We are delighted to report to this House that the proposed supply chain regulations comply with the provisions of the FMPA, chapter 6 and schedule 3, and cannot override the FMPA. Instead, the regulations are operational tools to implement the FMPA. Instead of chasing shadows, the two committees have satisfied themselves that the regulations comply with the provisions of the FMPA.
Hence, on behalf of the Standing Committee on Finance I submit the cited report to this House for approval. Ke a leboga Modulasetilo. [Thank you, Chairperson.] [Applause.]
There was no debate.
Chairperson, I move:
That the report be adopted.
Declarations of vote:
House Chairperson, in Parliament last week we saw a shameful display when the ANC used its majority on our committee to prevent a debate in this House on the Financial Services Bill. With due respect to my friends on the Trade and Industry Committee, it is telling that this House has just debated the uncontroversial Legal Metrology Bill, supported by all parties, but last week would not debate a controversial Bill that divides the House.
Today, I am afraid we have sunk to a new low. Not only do the supply chain regulations that we are considering leave Parliament open to fraud and corruption, but they have not even been deliberated on by the Select Committee on Finance that submitted them to this House.
So, last week we had the ANC shutting down the debate after a Bill was considered by a committee. This week we see the ANC using its majority to prevent the actual deliberation by a committee. They did this by moving straight to the committee vote immediately after our committee has been briefed on the regulations. The committee did not debate the regulations - it did not deliberate on them and the members did not apply their minds to them. However, here we are, considering regulations that will define how Parliament procures goods and services.
I am sure members will all agree that they are critical for the management of this institution, but I am afraid to say that they are deeply problematic.
Firstly, the definition of a conflict of interest is subjective and so narrow that it allows employees themselves to decide if they have a conflict of interest or not.
Secondly, the Secretary to Parliament can condone any conflict of interest he sees fit to. He can also continue tenders that they no longer need in Parliament, including those that have come about through improper processes.
Thirdly, the regulations give no substantial rights or duties to the Bid Adjudication Committee. Such rights and duties are usually conveyed by Treasury directives under the PFMA, but the PFMA does not apply to Parliament. So, we needed to be specific in these regulations and we were not.
These aspects, amongst others, mean that the regulations leave our Parliament vulnerable to corruption. The regulations are weak. They give too much unchecked power to the Secretary to Parliament and this is perhaps not surprising, because the Secretary has been allowed to function for four years without a legal supply chain management process. These regulations allow for this unfettered power to continue. The fact that they have been pushed through Parliament so fast, before our committee could even deliberate on them, raises serious questions about what the Speaker wants us to turn a blind eye to.
Members, can I urge you to reject these regulations ... [Interjections.] ... and request that the finance committee do its job ... [Interjections.] ... and apply its mind to the regulations before bringing them back for consideration by the House? Thank you. [Applause.]
Hon Chairperson, hon members and hon Deputy President, good afternoon. The ANC is here to confirm that the draft regulations on the supply chain management system have gone through a comprehensive process in Parliament.
The terms of reference which were set out for the committee to respond to have been met. In meeting these terms of reference the committee paid attention to the relevant sections of the Constitution, the principal Act and related legislation covering procurement, in particular the Preferential Procurement Policy Framework Act... [Interjections.] you do not think so because you were not in the meeting! The committee also considered the Broad-Based Black Economic Empowerment Act.
In terms of our mandate, we facilitated public involvement, and in particular that of the staff of Parliament, who are practitioners in the field of supply chain management. So, I do not understand what the hon Harris is saying. [Interjections.] I think you had better listen. They have been afforded the opportunity to propose whether the draft regulations should be amended or not.
What became clear to the committee at the end of the process was that there was no material matter of substance that required amendment, and the committee was unanimous on this matter. Today, we are hearing a different story!
With the exception of the single issue of drafting style, the draft regulations comply with the objects of the Financial Management of Parliament Act. Any suggestion that this process may have lacked expert opinion on the issue of procurement is without integrity.
The draft regulations issued in terms of the Financial Management of Parliament Act dwell extensively on ensuring that the regulations address the ongoing fight against corruption, a matter that the ANC has been seized with. Therefore, the ANC will definitely support these draft regulations. I thank you. [Applause.]
The motion from the Chief Whip of the Majority Party is that the Report be adopted. Are there any objections?
HON MEMBERS: Yes!
Since there are objections, I now put the question.
Question put: That the motion by the Chief Whip of the Majority Party for the Report to be adopted be agreed to.
Division demanded.
The House divided:
AYES - 223: Abram, S; Adams, P E; Bam-Mugwanya, V; Berend, S R; Beukman, F; Bhengu, F; Bhengu, N R; Bikani, F C; Bonhomme, T; Booi, M S; Borman, G M; Boshigo, D F; Botha, Y R; Botha, T; Bothman, S G; Burgess, C V; Buthelezi, M G; Cebekhulu, R N; Cele, M A; Chabane, O C; Chikunga, L S; Chili, D O; Chiloane, T D; Chohan, F I; Coleman, E M; Cronin, J P; Cwele, S C; Dambuza, B N; Davies, R H; De Lange, J H; Diale, L N; Dikgacwi, M M; Ditshetelo, I C; Dlakude, D E; Dlomo, B J; Dlulane, B N; Dubazana, Z S; Dube, M C; Duma, N M; Dunjwa, M L; Ferguson, B D; Fubbs, J L; Gasebonwe, T M A; Gaum, A H; Gcwabaza, N E; Gelderblom, J P; Gina, N; Gololo, C L; Goqwana, M B; Gumede, D M; Hajaig, F; Hanekom, D A; Holomisa, S P; Huang, S-B; Jeffery, J H; Kganare, D A; Khoarai, L P; Kholwane, S E; Khumalo, F E; Khunou, N P; Kilian, J D; Koornhof, N N J v R; Koornhof, G W; Kota-Fredericks, Z A; Kubayi, M T; Landers, L T; Lekgetho, G; Line-Hendriks, H; Lishivha, T E; Luyenge, Z; Maake, J J; Mabasa, X; Mabedla, N R; Mabuza, M C; Madlala, N M; Mafolo, M V; Magagula, V V; Magama, H T; Magubane, E; Mahomed, F; Makasi, X C; Makhuba, H N; Makhubela-Mashele, L S; Makhubele, Z S; Malgas, H H; Maluleka, H P; Manamela, K B; Mandela, Z M D; Manganye, J; Mangena, M S; Manuel, T A; Mashatile, S P; Mashigo, R M; Mashishi, A C; Masilo, J M; Masutha, T M; Mathale, C C; Mathebe, D H; Mathibela, N F; Matlanyane, H F; Matshoba, J M; Maunye, M M; Mavunda, D W; Mayatula, S M; Maziya, A M; McIntosh, G B D; Mdaka, M N; Mdakane, M R; Mfulo, A; Mjobo, L N; Mkhulusi, N N P; Mlangeni, A; Mmusi, S G; Mnisi, N A; Mocumi, P A; Moepeng, J K; Mohai, S J; Mohorosi, M M; Mokoena, A D; Molebatsi, M A; Molewa, B E E; Moloi-Moropa, J C; Moloto, K A; Moni, C M; Morutoa, M R; Mosimane, C K K; Moss, L N; Motimele, M S; Motsepe, R M; Mpontshane, A M; Msimang, C T; Msweli, H S; Mthethwa, E N; Mufamadi, T A; Mushwana, F F; Muthambi, A F; Nchabeleng, M E; Ndabandaba, L G B; Ndabeni, S T; Ndebele, J S; Ndlovu, V B; Ndude, H N; Nel, A C; Nelson, W J; Nene, N M; Newhoudt-Druchen, W S; Ngcengwane, N D; Ngcobo, B T; Ngcobo, E N N; Ngele, N J; Ngubeni-Maluleka, J P; Ngwenya, W; Ngwenya-Mabila, P C; Nhlengethwa, D G; Njikelana, S J; Njobe, M A A; Nkwinti, G E; November, N T; Ntapane, S Z; Ntuli, B M; Ntuli, Z C; Nxesi, T W; Nxumalo, M D; Nyekemba, E; Oliphant, M N; Pandor, G N M; Peters, E D; Petersen-Maduna, P; Phaahla, M J; Phaliso, M N; Pilane-Majake, M C C; Pule, D D; Radebe, B A; Radebe, J T; Radebe, G S; Ramathlodi, N A; Ramatlakane, L; Ramodibe, D M; Saal, G; Schneemann, G D; Segale-Diswai, M J; September, C C; Shabangu, S; Sibanyoni, J B; Sibiya, D; Sindane, G S; Singh, N; Sisulu, L N; Sithole, K P; Sizani, P S; Skosana, M B; Skosana, J J; Smith, P F; Smith, V G; Sogoni, E M; Sonto, M R; Sosibo, J E; Suka, L; Sulliman, E M; Surty, M E; Swanepoel, D W; Thabethe, E; Thibedi, J D; Thobejane, S G; Tinto, B; Tlake, M F; Tobias, T V; Tsebe, S R; Tseke, G K; Tsenoli, S L; Tshabalala, J; Tshwete, P; Twala, N M; Van Der Merwe, L L; van Rooyen, D D; Van Wyk, A; Wayile, Z G; Williams, A J; Xaba, P P; Xasa, T; Yengeni, L E; Zikalala, C N Z; Zulu, B Z.
NOES - 45: Boinamo, G G; Bosman, L L; Coetzee, T W; De Freitas, M S F; Dreyer, A M; Duncan, P C; Esau, S; Farrow, S B; George, D T; Harris, T D; James, W G; Kalyan, S V; Kloppers-Lourens, J C; Kohler-Barnard, D; Kopane, S P; Krumbock, G R; Lamoela, H; Lorimer, J R B; Lotriet, A; Marais, E J; Marais, S J F; Maynier, D J; Michael, N W A; Mileham, K J; Motau, S C; Mubu, K S; Ollis, I M; Rabotapi, M W; Rogers, F A; Ross, D C; Schafer, D A; Shinn, M R; Steenhuisen, J H; Steyn, A C; Steyn, A; Stubbe, D J; Swart, M; Swathe, M M; Van Dalen, P; Van den Berg, N J; Van Der Linde, J J; Van Der Westhuizen, A P; Van Schalkwyk, H C; Waters, M; Watson, A.
ABSTAIN - 1: Thring, W M.
Question agreed to.
Report accordingly adopted.