Chairperson and hon members, I'm reading this report on behalf of both the Standing Committee on Appropriations and the Standing Committee on Finance. Section 77 of the South African Constitution empowers Parliament to amend Money Bills. In giving effect to section 77 of the Constitution, Parliament introduced the Money Bills Amendment Procedures and Related Matters Act as an instrument for amending Money Bills. Section 15 of the Money Bills Act establishes a parliamentary budget office, which must be headed by a director. The Money Bills Act prescribes that the director must be appointed by both Houses of Parliament, on the recommendation of the Committee on Appropriations and the Committee on Finance.
In order to build an effective Parliament, one that is responsive to the needs of the people, the management of the legislative and oversight programme of Parliament demands capacity, competence and collective action. It is imperative that, as the policy-making process becomes more complex and given the need to allocate limited financial resources to governance policy priorities in an efficient, economical and effective manner, parliamentary committees must be adequately supported, resourced and capacitated.
The Parliamentary Budget Office is one way of enhancing the capacity of the Houses of Parliament and its committees to balance appropriately with the sophistication of the executive. Effective budget management requires the clear and carefully balanced distribution of powers and responsibilities. Parliament has contracted Prof Mohammed Jahed since 2012. He was seconded from the Development Bank of South Africa to assist Parliament in setting up the parliamentary budget office.
Prof Jahed holds a PhD in economics and has experience and expertise in economic development, economic policy formulation and public and development management. He served as a senior economic planning specialist at the Development Bank of South Africa and was chief economist and head of policy.
In its decision on the appointment of the director, the committee took into consideration the substantial interaction that Prof Jahed has had with the different political parties and with individual members, his extensive expertise in public finance and economics and the degree of professionalism with which he has conducted his work over the past 12 months.
Based on the above, the Standing Committee on Appropriations and the Standing Committee on Finance are of the view that Prof Jahed is a suitable candidate to head the parliamentary budget office. In accordance with subsections 15(5)(a) and (b) of the Money Bills Act, the Standing Committee on Appropriations and the Standing Committee on Finance recommend that Prof M I Jahed be appointed as the director of the Parliamentary Budget Office and that the appointment of the director of the Parliamentary Budget Office be subject to agreement to a five-year performance-based renewable contract, with the conditions of service, including salary and allowance, being substantially the same as those of the top rank of the Public Service, as per subsection 15(5)(b) of the Act.
In conclusion, oversight over government finances is an important function of the national legislature and is aimed at enhancing the economical use of public resources.
There was no debate.
Declarations of vote: