(1)Whether he has found that the Government is approaching a period of elevated redemptions requiring the repayment of a significant amount of government debt that will have reached its maturity date; if not, what is the position in this regard; if so, (a) which debt was reaching maturity between the latest specified date for which information is available and 31 March 2024, (b) what will be the amount of the total debt that will have to be redeemed by that date, (c) will the specified debt be inclusive of the debt incurred on behalf of Eskom and (d) in which strategic manner will the Government secure the funds to honour its debt on maturity between the latest specified date for which information is available and 31 March 2024;
(2) whether the Government is considering an increase in tax to meet its fiscal obligations; if not, what is the position in this regard; if so, what are the relevant details?
1. Table 3.7 (below) of Chapter 3 of the MTBPS provides a breakdown of redemptions for the current year and over the medium term. (a)(b) Government will redeem debt of R155.5 billion in 2023/24, (c) R78 billion has been penciled in for Eskom in 2023/24 (d) the gross borrowing requirement will be raised through the issuance of domestic long term loans, domestic short term ...
(1)Whether he has found that pronouncements made by a certain foundation on various matters (details furnished) constitute the type of activities that a public benefit organisation (PBO) may not engage in; if not, what is the position in this regard; if so,
(2) whether the (a) National Treasury and (b) SA Revenue Service intend to review the approval of the specified foundation (name furnished) as a registered PBO with an 18A classification; if not, why not; if so, what are the relevant details?
1. SARS cannot speak to the specifics of a particular case. However, the legal position is that a Public Benefit Organisation (PBO) approved by the Commissioner under section 30 of the Income Tax Act, must conduct one or more Public Benefit Activities (PBAs). These activities are listed in the Ninth Schedule to the ITA. In general, these activities must be conducted in a manner referred ...
(1)Whether all state departments and public entities still pay their monthly contributions on behalf of their employees to third parties such as the Government Employees Pension Fund, Medical Schemes and the SA Revenue Services; if not, (a) which (i) state departments and/or (ii) public entities are in arrears with contributions in this regard, (b) what total number of employees are affected in each case, (c) by what amounts are such state departments and/or public entities in arrears and (d) what steps are being taken to rectify the matter;
(2) whether any shortages in the fiscus played a role in the specified state departments and/or public entities being in default; if not, what is the position in this regard; if so, what are the (a) relevant details and (b) risks of (i) state departments and (ii) public entities continuously defaulting with contributions to the third parties?
Government Employees Pension Fund (GEPF)
(1) As of the conclusion of the first quarter of the fiscal year 2023/2024, all state departments and public entities participating in the Government Employees Pension Fund have been diligent in remitting their monthly contributions on behalf of their employees to the Fund. The data indicates that 99.90% of the total monthly pension contributions due were received and reconciled ...
(1)Whether the National Treasury has done a due diligence to determine the ability of the Takatso Consortium to make the R3,0 billion payment to SA Airways (SAA) as is required in the agreement pertaining to the transfer of 51% of the shares to the Takatso Consortium; if not, why not; if so, what are the relevant details of the (a) process followed to conduct the due diligence and (b) outcome of the due diligence;
(2) whether the due diligence process made a determination that the R3 billion will be made available to SAA by the consortium; if not, why not; if so, what are the relevant details?
The process of selecting a Strategic Equity Partner for SAA and the subsequent negotiations and conclusion of the terms and conditions for the sale of 51% of SAA’s shareholding was performed by the Department of Public Enterprises.
The National Treasury did not perform any due diligence related to the transaction as it was not subject to section 54(2) of the PFMA. The Minister of ...
Given the numerous complaints by the State Owned Companies in terms of being hamstrung by provisions of the Public Finance Management Act, Act 1 of 1999 (PFMA) and the Preferential Procurement Policy Framework Act 5 of 2000 (PPPFA), including their inability to compete on equal footing with the private sector companies, what are the reasons that he does not proactively exercise the applicable provisions of both the PFMA and the PPPFA to exempt all the stateowned companies for complying with the PPPFA and the PFMA, just like Telkom was exempted?
In terms of section 3 of the Preferential Procurement Policy Framework Act (Act No. 5 of 2000 – “the PPPFA”), the “Minister may, on request, exempt an organ of state from any or all the provisions of this Act if –(a) it is in the interest of national security; (b) the likely tenderers are international suppliers; or (c) it is in the public interest. ...
(a) What were the reasons that the National Treasury failed to anticipate and include the 7,5% public sector wage increase agreed to recently in the main 2023-24 Budget and (b) on what basis was the 0% increase modelled?
The mis-alignment between the budget process and the finalisation of wage agreements has been a feature of South Africa’s public sector remuneration system for many years.
The budget included a 1.5 per cent pay progression increase for civil servants in 2023, which was the baseline that existed at the time, taking into account the projected change in staffing numbers. The National Treasury excluded any ...
What mitigation strategies has the National Treasury put in place to ensure that fiscal consolidation efforts in 2024 do not further hamper the ability of government departments to deliver crucial services?
Since the 2020 MTBPS fiscal consolidation measures have been driven by multiple goals: to eliminate the primary fiscal deficit and stabilize debt; support economic growth through fiscal stability and a composition of spending focused on investment rather than consumption; and to protect funding for the most vulnerable. Accordingly, the budget has retained the percentage spent on the social wage at around 60 per cent ...
In light of the latest account provided by the Special Investigating Unit on the malfeasance by the National Treasury in the implementation of the infamous Integrated Financial Management System project, what consequence management steps will he take against officials responsible for the litany of missteps which resulted in hundreds of millions of Rands in irregular and fruitless expenditure?
The National Treasury noted the presentation made by the Special Investigating Unit (SIU) to the Standing Committee on Public Accountants on Wednesday, 13 September 2023. The National Treasury will comprehensively respond to the matters raised in the referrals by the SIU to the National Treasury, after receipt of the SIU’s final report, including its entire set of supporting documents and annexures. The National Treasury ...
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Whether, with reference to the reply to question 2675 on 1 September 2023 by the Minister of Cooperative Governance and Traditional Affairs and the 2020-21 report of the Auditor-General which stipulates that 84% of municipalities in the Republic failed to pay their creditors within the mandated 30-day period, (a) the National Treasury has conducted a detailed quantitative and qualitative assessment of the resultant socio-economic ramifications, specifically the adverse impact on job losses and business viability for small companies, sole proprietors and cooperatives; if not, why not; if so, what are the relevant details of the (i) assessment and (ii) strategic measures under consideration to rectify the systemic issue?
Payments not made within 30 days are in breach of the Municipal Finance Management Act and the oversight over compliance to laws and regulations is that of the Municipal Council. Therefore, the questions should be directed to the respective municipalities as these relate to contractual obligations entered between municipalities and their respective service providers.
The National Treasury has not conducted research or an assessment ...
What consultation process does the National Treasury undertake before finalising the cost-containment measures to assist national departments, public entities and provinces to close a fiscal gap?
Various high-level forums of government have been briefed about the fiscal challenges in the current fiscal year and the need for urgent and difficult measures to be taken to forestall their damaging impact during the course of the financial year. This includes briefings and discussions at Cabinet, the Minister’s Committee on the Budget, the Budget Council, the Forum of South African Directors-General (FOSAD), and ...
