Chairperson, hon Minister, hon members of this House, clearly the objectives of the Finance Bill before the National Council of Provinces are as follows: to charge the National Revenue Fund with certain unauthorised expenditure, to authorise other expenditure and to regulate the closure of certain obsolete revenue accounts. Moreover, the essence of the Bill is to legally confirm the decisions that have been taken by the Standing Committee on Public Accounts so that expenditure that originally was unauthorised can now be properly accounted for.
The expenses outlined in this Bill occurred between 1991 and 1997, and are referred to in clauses 1 to 3 of the Bill. The total expenditure amounts to approximately R4,1 billion. The unauthorised expenditure listed in Schedule 1 of the Bill has to be paid over to the National Revenue Fund, which funds have to be refunded to the relevant departments as a direct charge against the National Revenue Fund. However, the bulk of the expenses listed in Schedule 3 of the Bill and which relates to the expenditure of the former TBVC states and self-governing territories, affects 96% of the R4,1 billion.
Although we have transcended the apartheid era, we are still victims of that dysfunctional ideology.
The TBVC states were a symbol of that wretched ideology. The Bill, in a sense, is the last nail in the coffin of the TBVC states. The new democratic order has taken the necessary steps to ensure that such unauthorised expenditure is not perpetuated into the future. The Public Finance Management Act, widely known as the PFMA, is designed to ensure that all national departments and provinces exercise reasonable care by implementing effective, efficient and transparent processes in financial and risk management in order to detect and prevent unauthorised, irregular and wasteful expenses.
The signing of the Public Finance Management Act into law bears testimony to the ANC-led Government's commitment to improving the management of the national financial resources. Plans to implement the PFMA by the National Treasury are already taking shape. Emphasis is put on training of staff, recruitment of key expertise and upgrading of technology. In this way, we can ensure effective financial management of revenue and expenditure and of assets and liabilities.
The reorganisation of the SA Revenue Service and the resultant efficient revenue collection have increased the amount of finance available for Government's use. Moreover, the recent reorganisation of the Department of Finance and State Expenditure into a single homogenous unit will ensure effective oversight in respect of departments. Simultaneously, the increased delegation of powers to departments will in turn ensure proper delivery and accountability to the national Treasury.
Given the huge political commitment displayed by the head of Government to the Public Finance Management Act, we could witness a more efficient management of our country's resources in the not too distant future.
All the members of the select committee and the parties they represent supported the Bill without any reservations, and the ANC also endorses the Bill as it stands. [Applause.]