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Background to the Act
Efforts to draft a financial management law specific for Parliament and Provincial Legislatures started during the third democratic Parliament, with the draft Financial Management of Parliament Bill. This bill was published in the October 2005 Government Gazette (GG 28166, 28 October) and referred to the Portfolio Committee on Finance.

In 2009, during the term of the fourth democratic Parliament, these efforts resulted in the signing into law of the Financial Management of Parliament and Provincial Legislatures Act (Act No. 10 of 2009). Also during the fourth democratic Parliament, in September 2014, the Financial Management of Parliament Amendment Act was signed into law. It came into effect in April 2015.

Objectives of the Act are to:

• Ensure transparency, accountability and sound management of Parliament’s revenue, expenditure, assets and liabilities.
• Ensure a consultative relationship between Parliament and the National Treasury conducted at a high level and based on respect for the constitutional status of Parliament; the constitutional requirements for tabling of money bills; budget processes, standards of generally recognised accounting practice, uniform expenditure classifications and treasury norms and standards in terms of the Public Finance Management Act; national government’s fiscal policy.
• Provide the National Treasury with an opportunity to comment on Parliament’s proposed annual budgets and adjustments budgets; with information on Parliament’s proposed annual budgets and adjustments budgets for inclusion in the national annual budgets and adjustments budgets; and with regular information on Parliament’s expenditure.
• Provide for parliamentary oversight of Parliament’s budgeting and expenditure through an appropriate oversight mechanism of Parliament
• Establish norms and standards for managing the financial affairs of Provincial Legislatures

Provisions of the Act include:

• An oversight mechanism to oversee the financial management of Parliament. Representation on the oversight mechanism is in accordance with the Joint Rules of Parliament, which must provide that no Member of Parliament may attend a deliberation on a matter in which that member has a material interest. A meeting of the Joint Rules Committee on 11 November 2015 considered and agreed on rules for the establishment of the oversight mechanism and tabled these in November.
• Timelines for planning and budgeting.
• Tabling of Parliament’s draft strategic plan, draft annual performance plan and draft budget and tabling of Parliament’s annual report within specific time.
• Parliament being able to retain certain unspent funds.
• Prohibition on Members of Parliament serving, attending or participating in any way in meetings of tender committees and evaluation or approving tenders, quotations, contracts or other bids for Parliament.
• Prohibition on contracts to provide goods or services to Parliament being awarded to Members of Parliament or the Cabinet; Members of Provincial Legislatures or provincial Executive Councils; Municipal Councillors; any person employed by the state whose participation in bidding for a contract may result in a conflict of interest; any entity in which any of the people already mentioned is a director or has a controlling or other substantial interest.
• A list of instances of financial misconduct by the Accounting Officer or officials which are liable for disciplinary proceedings and those which are liable for criminal proceedings.
• A Code of Ethics for Members of the Executive Authority (the Speaker and the Chairperson acting jointly). The code supplements the existing Code of Conduct for Members of the Assembly and permanent Council Members.
• A list of matters to be covered in Parliament’s supply chain management policy.

Issued by the Parliamentary Communication Services