National Treasury reported that a decision had been taken to shift oversight responsibility for the PSC and PALAMA to the DPSA, in terms of the Public Finance Management Act (1999). This decision poses two challenges for the Committee, the accountability of the Accounting officers for the PSC and PALAMA, and the misplacement of the PSC within the DPSA, given its constitutional responsibility over the Public Service. These two challenges are discussed, in detail, below.