The Minister of Public Works and I have agreed to undertake a joint review of the validity and cost-effectiveness of all government property leases. [Interjections.] [Applause.] Steps will also be taken to improve the ability of departments to set specifications for tenders.
During the past year, Mr Speaker, it has been necessary to take steps to address financial management weaknesses that have undermined service delivery and put financial sustainability at risk in several provinces. The interventions in all three provinces are under way, as you know. The cash crisis has been averted, I hope. We shall continue to work hard at building up institutions and systems where weaknesses have been identified, and we must do this in order to restore the trust of our people in our capacity to govern.
There are several lessons of general application from these interventions. We as government need stronger rules to ensure that legitimate creditors are paid within the legally prescribed 30-day period - not more, not less. [Applause.] We need better procedures to ensure that staff appointments are not made without the necessary budget allocations and cash availability. [Interjections.] [Applause.] We also need to reduce administrative staff in our system in favour of frontline teaching, nursing and service delivery personnel. [Applause.]
We need to improve financial management capability across national and provincial departments. We need stricter oversight of supply chain management processes, and I wish to acknowledge the efforts of Cabinet colleagues who are addressing these challenges in their respective areas of responsibility, in collaboration with provincial MECs. These colleagues will report further on the progress they are making during their respective Budget Votes.
Now, with respect to the financial sector, I am pleased to announce that progress is being made on several financial sector reforms. There is now agreement between stakeholders on enhanced targets for empowering financing and access to financial services. A revised financial sector charter code will be gazetted by the Minister of Trade and Industry shortly for public comment. This has been an intractable negotiation but it is now concluded, and congratulations go to everyone concerned.
More appropriate and balanced capital adequacy and liquidity standards are being phased in for banks, and similar reforms are planned for the insurance sector. As announced last year, we intend to shift towards a twin- peaks system of financial regulation, where we separate prudential from market conduct supervision of the financial sector. Consultations will continue this year, with a view to tabling legislation in early 2013.
Proposals will be published for simplifying and modernising procedures for cross-border investments into and out of South Africa. After taking public comments, Treasury recognises that some of the barriers identified also apply to domestic investors. We intend to consult further to explore how we can lower costs and barriers to all investments in South Africa.
A series of discussion papers will be released this year on promoting household savings and reforming the retirement industry. Consultations on these reforms with the industry, employers and trade unions will take place. Among the issues is improved governance over pension funds - too much money is still being stolen from pension funds - including more effective interventions to eliminate corruption and fraud, and ways to improve preservation of retirement fund assets to ensure higher levels of income for our people in retirement.
Fees for many products in the financial sector remain too high.
HON MEMBERS: Hear, hear!