Actions and progress on recommendations

Actions on recommendations

Noting that parts of the electoral reforms proposed by the Commission are currently under consideration in Parliament in relation to the Electoral Laws Amendment Bill, and considering that Parliament has a court-prescribed deadline to approve the Bill by 10 December 2022, it will be necessary to await the finalisation of the Bill before determining whether it satisfies the concerns raised by the Commission.

Progress

The Electoral Amendment Act, 2023 recently passed by Parliament makes provision in section 23 for an Electoral Reform Consultation Panel, which the Minister must establish. The functions of the Panel inter alia are to independently investigate, consult on, report on and make recommendations in respect of potential reforms of the electoral system for the election of the National Assembly and Provincial Legislatures.

Actions on recommendations

Noting that parts of the electoral reforms proposed by the Commission are currently under consideration in Parliament in relation to the Electoral Laws Amendment Bill, and considering that Parliament has a court-prescribed deadline to approve the Bill by 10 December 2022, it will be necessary to await the finalisation of the Bill before determining whether it satisfies the concerns raised by the Commission.

Progress

The Electoral Amendment Act, 2023 is currently subject to challenges in the Constitutional Court. It will be necessary to await the finalisation of legal processes before determining whether it satisfies the concerns raised by the Commission.

Actions on recommendations

The recommendation to amend the Political Party Funding Act to criminalise donations to political parties in the expectation of access to procurement tenders or contracts is accepted. This amendment will be made alongside other consequential amendments that will be required following the approval of the Electoral Amendment Bill currently before Parliament.

Progress

The Act is part of legislation being reviewed in the wake of the Electoral Amendment Act, 2023 which provides for independents. Section 10 of the Act already makes it an offence to give or receive a donation for any reason other than party political reasons, and members receiving a donation that is not on behalf of a party. Section 8 also makes it an offence to receive donations from a prohibited source.

Actions on recommendations

The Department of Justice and Constitutional Development will research possible legislative provisions for the creation of a statutory offence for the abuse of public power. This work will be finalised by mid-December 2023.

Progress

This matter is under consideration by the South African Law Reform Commission (SALRC) where research is currently being undertaken, with the report to be finalised by mid-December 2023.

Actions on recommendations

The Department of Justice and Constitutional Development has been directed to undertake research on the creation of an offence of political or constitutional malpractice. It will be completed by December 2023.

Progress

The matter is under consideration by the South African Law Reform Commission (SALRC) where research is currently being undertaken, with the report to be finalised by December 2023.

Actions on recommendations

The recommendation to amend the Prevention and Combating of Corrupt Activities Act on the failure of persons or entities to prevent bribery will be included in the Judicial Matters Amendment Bill, which will be submitted to Cabinet in the latter half of 2022.

Progress

The amendment of the Prevention and Combating of Corrupt Activities Act on the failure of persons or entities to prevent bribery is included in the Judicial Matters Amendment Bill introduced in Parliament in March 2023.

Actions on recommendations

The South African Law Reform Commission (SALRC) is considering deferred prosecution agreements as part of its review of the criminal justice system. This is a broad investigation that seeks to ensure efficiency in the adjudication and finalisation of criminal cases. It is expected to be finalised towards the end of the 2023/24 financial year. Deferred prosecution agreements will receive attention, in this review, during the current financial year.

Progress

A project plan for the development of a reviewed and new Criminal Procedure Act has been developed and a project team established. The SALRC and Department of Justice is partnering with the Department of Correctional Services, SAPS, Legal Aid and the NPA in this project. A workshop was held with stakeholders in June 2023, and work is underway to prepare the Bill in Q3 2023.

Actions on recommendations

The Department of Justice has commenced a review of the Protected Disclosures Act and Witness Protection Act to, among other things, give effect to the following recommendations: ensure whistle-blowers receive the protections afforded by section 32(2) of the UN Convention Against Corruption.

Progress

The Discussion Document on Proposed Reforms for The Whistleblower Protection Regime in South Africa was published for public comment in June 2023. The document made significant recommendations for legislative reforms in line with Article 32 of the UN Convention against Corruption. These include improved measures to keep a protected disclosure confidential where information might identify the discloser; the creation of a reverse onus where any conduct or threat against a whistleblower is presumed to have occurred as a result of a possible or actual disclosure that a person makes; unless the person who engaged in the conduct or made the threat can show satisfactory evidence in support of another reason for engaging in the conduct or making the threat; the creation of an offence where a person uses force; coercion, threats, intimidation, or any other coercive means against another person with intent to prevent that person from, or influence that person to refrain from making a disclosure; protection by the state to whistleblowers and their immediate family members in instances where their lives or property is endangered; and inclusion of whistleblower in the definition of witness in terms of the Witness Protection Act.

Actions on recommendations

The Department of Justice has commenced a review of the Protected Disclosures Act and Witness Protection Act to, among other things, give effect to the following recommendations: the possible award of a proportion of funds recovered to the whistle-blower provided that the information disclosed has been material in recovering funds.

Progress

The Discussion Document on Proposed Reforms for The Whistleblower Protection Regime in South Africa was published for public comment in June 2023. The document examines the evidence for and against the provision of financial incentives for whistleblowers using international experience. This matter remains an issue for discussion as the legislative proposals are developed from this discussion document process.

Actions on recommendations

The Department of Justice has commenced a review of the Protected Disclosures Act and Witness Protection Act to, among other things, give effect to the following recommendations: whistle-blowers to be afforded immunity from criminal or civil action arising from honest disclosures.

Progress

The Discussion Document on Proposed Reforms for The Whistleblower Protection Regime in South Africa was published for public comment in June 2023. The document recommends several legislative measures to support whistleblowing such as criminalising threats against whistleblowers and shifting the onus of proof to those seeking to deny whistleblower claims. The document notes that the amended Protected Disclosure Act (5/2017) does now offer immunity from criminal or civil suits provided that the disclosure is made in good faith and the reporter is not complicit in the misconduct reported.

Actions on recommendations

The National Anti-Corruption Advisory Council (NACAC) will, in the course of its work to advise on strengthening the country’s anti-corruption institutional arrangements, consider the detailed recommendations of the Commission on the establishment of an ‘Anti-State Capture and Corruption Commission’ and a ‘Public Procurement Anti-Corruption Agency’. Based on the advice of the NACAC and the outcomes of the review of South Africa’s anti-corruption architecture by the Department of Justice, a comprehensive proposal on an effective and integrated anti-corruption institutional framework will be produced for public consultation, finalisation and implementation. To further strengthen the current anti-corruption capabilities, the Investigating Directorate (ID) will be established as a permanent entity within the National Prosecuting Authority (NPA) and ID investigators will be provided with the requisite criminal investigatory powers as contemplated in the Criminal Procedure Act No. 51 of 1977. To address concerns with respect to the independence of the NPA, legislative amendments will be introduced to ensure greater transparency and consultation in the process for selection and appointment of the National Director of Public Prosecutions (NDPP), drawing on the process adopted for the selection of the current NDPP. Work will be undertaken to clarify the Minister's 'final responsibility' over the NPA as set out in section 33 of the NPA Act and settling aspects related to the NPA’s financial and administrative independence.

Progress

The National Anti-Corruption Advisory Council (NACAC) is working with a range of experts on a recommendations report to the President, to be finalised by March 2024. The Department of Justice and Constitutional Development (DOJ&CD) has completed its comparative research on the models followed in other countries, and is preparing a proposal on the recommendations for a model for SA’s anti-corruption architecture. Draft legislation is also under consideration. This process will be in response to the key recommendations of both the State Capture Commission and the National Anti-Corruption Strategy with regard to the anti-corruption commissions and agencies.

Actions on recommendations

The National Anti-Corruption Advisory Council (NACAC) will, in the course of its work to advise on strengthening the country’s anti-corruption institutional arrangements, consider the detailed recommendations of the Commission on the establishment of an ‘Anti-State Capture and Corruption Commission’ and a ‘Public Procurement Anti-Corruption Agency’. Based on the advice of the NACAC and the outcomes of the review of South Africa’s anti-corruption architecture by the Department of Justice, a comprehensive proposal on an effective and integrated anti-corruption institutional framework will be produced for public consultation, finalisation and implementation. To further strengthen the current anti-corruption capabilities, the Investigating Directorate (ID) will be established as a permanent entity within the National Prosecuting Authority (NPA) and ID investigators will be provided with the requisite criminal investigatory powers as contemplated in the Criminal Procedure Act, Act No. 51 of 1977. To address concerns with respect to the independence of the NPA, legislative amendments will be introduced to ensure greater transparency and consultation in the process for selection and appointment of the National Director of Public Prosecutions (NDPP), drawing on the process adopted for the selection of the current NDPP. Work will be undertaken to clarify the Minister's 'final responsibility' over the NPA as set out in section 33 of the NPA Act and settling aspects related to the NPA’s financial and administrative independence.

Progress

The National Anti-Corruption Advisory Council (NACAC) is working with a range of experts on recommendations to the President, to be finalised by March 2024.

The Department of Justice and Constitutional Development (DOJ&CD) has completed its comparative research on the models followed in other countries, and is preparing a proposal on the recommendations for a model for SA’s anti-corruption architecture. Draft legislation is also under consideration. This process will respond to the key recommendations of both the State Capture Commission and the National Anti-Corruption Strategy with regard to the anti-corruption commissions and agencies.

The NPA Amendment Bill was tabled in Parliament in September 2023, marking an important milestone in strengthening anti-corruption capacity. The Bill creates a permanent Investigating Directorate on Corruption within the NPA and grants its investigators powers to investigate offences, search and seizure and effect arrests. The Bill also proposes the appointment of a retired judge to exercise oversight over the investigators.

Legislative amendements are being considered with respect to the appointment process for the National Director of Public Prosecutions (NDPP) under a broader review of the appointment of heads of entities.

The DOJ&CD is developing a framework to enhance coordination with the NPA at both strategic and technical levels, and to clarify the Minister's "final responsibility" over the NPA as set out in section 33 of the NPA Act. The draft document will be finalised by December 2023.

Actions on recommendations

The Department of Public Enterprises is working to identify and launch delinquency proceedings against former board members of SOEs which fall under their mandate, including Eskom, Transnet, Denel and Alexkor.

Progress

Cases have been compiled against 73 directors. The DPE expect to have concluded these investigations by December 2023.

Actions on recommendations

Government accepts the recommendations on the need for a process for the appointment of boards at state-owned enterprises that is not open to manipulation, including the involvement of independent panels with appropriate technical expertise to recommend suitable candidates to the relevant executive authority. This process would need to take due regard of any legislation relevant to the particular entity. Provision will be made in the final ‘Guide for the Appointment of Persons to Boards and Chief Executive Officers of State-Owned and State-Controlled Institutions’ for independent panels of relevant stakeholders and experts to play a role in nominating suitable candidates to the relevant Minister. It is anticipated that the guide will be finalised in the 2023/24 financial year.

Progress

Consulations on new legislation for State-Owned Companies and Entities are underway.

Actions on recommendations

Government accepts the recommendations on the need for a process for the appointment of boards at state-owned enterprises that is not open to manipulation, including the involvement of independent panels with appropriate technical expertise to recommend suitable candidates to the relevant executive authority. This process would need to take due regard of any legislation relevant to the particular entity. Provision will be made in the final ‘Guide for the Appointment of Persons to Boards and Chief Executive Officers of State-Owned and State-Controlled Institutions’ for independent panels of relevant stakeholders and experts to play a role in nominating suitable candidates to the relevant Minister. It is anticipated that the guide will be finalised in the 2023/24 financial year.

Progress

This process is ongoing.

Actions on recommendations

The recommendation to amend the Companies Act so as to permit applications [for a director to be declared delinquent] to be brought even after two years is accepted and will form part of a review of the Companies Act that is expected to be concluded in the third quarter of 2023.

Progress

The Companies Second Amendment Bill has been approved by Cabinet and submitted to Parliament. This amendment extends the time bar period for bringing an application to declare a director of a company delinquent.

Actions on recommendations

The Financial Intelligence Centre (FIC) has appointed attorneys to conduct an urgent independent review of the effectiveness of the current regulatory reporting regime under the FIC Act. It will also undertake a review of what banks had reported in relation to possible state capture transactions, what the FIC had done with the reports, what referrals the FIC had made to law enforcement agencies and what the law enforcement agencies had done with such referrals. The FIC briefed the attorneys on 26 August 2022 and is awaiting the project plan from the attorneys, which will include the duration of the review.

Progress

The Financial Intelligence Centre (FIC) has provided a progress report on phase 2 of the review, as per recommendations of the Commission. This report contains preliminary findings that the FIC is proving to be effective insofar as the law enforcement agencies (LEAs) derive value from the FIC's intelligence reports, particularly in recent years. However, the Review has revealed some systematic implementation gaps which if tightened, can result in enhanced efficiency for the FIC, LEAs and supervisory bodies.

Actions on recommendations

These matters have been referred to the Independent Police Investigating Directorate (IPID), which has assigned a team of investigators to deal with these allegations.

Progress

The IPID investigation is on-going.

Actions on recommendations

The Commission’s recommendations for recovery of monies and assets are receiving priority attention from the NPA’s Asset Forfeiture Unit, the SIU and SARS.

Progress

Freezing orders of R14.18 billion have been granted to NPA for state capture related cases. R5.4 billion has to date been recovered and returned to the state.

Actions on recommendations

The recommendations are directed to law enforcement agencies, in particular, the South African Police Service (SAPS), its Directorate for Priority Crime Investigation (DPCI), the National Prosecuting Authority (NPA) and its Investigating Directorate (ID).

Progress

There are 9 cases in court related to Commission recommendations, involving 47 accused people and 21 companies. Two cases have been finalised, both delivering guilty verdicts. Click here for details on these cases.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

The recommendation is a matter for consideration by Parliament.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

The recommendation is a matter for consideration by Parliament.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

Parliament’s Rules Committee acknowledged that the Sixth Parliament had taken steps to facilitate co-operation between Parliament and the Executive. The Committee concluded that there was no need for additional legislation or rules.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

At present, most committees have a “recommendation tracking tool” in place to follow up on actions to be taken by the executive. The Houses,too, have manual systems in place and an e-system is being piloted. This matter is also part of the Annual Performance Plan of the institution.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

Parliament undertook research on international practices and specifically whether other countries had comparable laws. The research found that, from the 12 countries surveyed, none had statutes. Parliament’s Rules Committee agreed that, as a general point, legislation would not necessarily serve to address all the challenges identified by the State Capture Commission.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

Parliament’s Rules Committee determined that there is no need for legislation in this regard. Instead, it agreed on parameters for guidelines on managing this exercise.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

Parliament’s Rules Committee concluded that there was no need for additional legislation or rules. The Committee also noted that the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act already made it an offence for persons to refuse to appear before Parliament. As an example, in the past 12 months a Minister was summoned for not appearing before the Committee on Tourism.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

Parliament’s Rules Committee noted that the option of legislative review may not resolve the challenges alluded to by the State Capture Commission. Moreover, there were already laws and best practices concerning the selection of certain office-bearers and that all appointments must be based on merit. Best practices already developed by Parliament should be maintained.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

The matter of oversight monitoring, tracking and advisory is currently receiving attention, with the focus being on capacity more than on establishing new structures.

Actions on recommendations

The Leader of Government Business will interact with Parliament’s Presiding Officers on the recommendations that relate to the interface between Parliament and the Executive.

Progress

Parliament’s Rules Committee resolved that the matter be considered as work in progress. The Committee further agreed that the desk-top research conducted by the Parliamentary Budget Office should be complemented with a fact-finding visit with a view to exploring international best practice in respect of the matter. In so doing, a firm foundation could be laid for the Seventh Parliament.

Actions on recommendations

With respect to the recommendation that banks be required to follow a fair process when considering the closure of a client's accounts, National Treasury will review whether the current standards need to be strengthened to better protect retail customers from bank closures from a financial inclusion perspective, to the extent that they comply with anti-money laundering legislation and other applicable laws.

Progress

The regulatory powers that will strengthen the current Conduct Standard are entrenched in the Conduct of Financial Institutions Bill (COFI) Bill. The review of the Conduct Standard for Banks by the Financial Sector Conduct Authority (FSCA) is still underway to identify gaps to better protect the customers. The review of the financial sector code is still underway between the Financial Sector Transformation Council (FSTC) constituencies.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 20 reads as follows: If a procuring institution transfers funds to a person or organisation other than an organ of state to perform a function on behalf of the procuring institution in terms of legislation authorising it, any procurement required to perform the function must be in accordance with this Act.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to a Code of Conduct setting out the ethical standards that apply in the procurement of goods and services for the public.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 9 of the Bill requires all officials involved in procurement to comply with the prescribed code of conduct or face sanction. Section 10 prescribes the conduct required of persons involved in public procurement.

Actions on recommendations

The review of the respective roles of the Auditor-General and private auditors, as well as recommendations on the public-sector audit committees, are expected to be completed by 30 September 2023.

Progress

Work in progress.

Actions on recommendations

Progress

The review by Department of Justice provides arguments for and against the incentivisation of whistleblowing through payment of a percentage of funds recovered. This remains a question to be resolved through further deliberation and consultation.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to setting standards of transparency for inclusion in every procurement system.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Among other things, the Bill requires the Public Procurement Office (PPO) to determine which information must be disclosed with regards to procurement. This information could include: - reasons why a decision is made to not follow an open competitive tender process; - all information regarding a bid; - the identity and details of each company which submits a bid; - the date, reasons for and value of an award to a bidder, including the record of the beneficial ownership of that bidder; and - contracts entered into with a supplier and invoices submitted by the supplier. The Bill further requires the PPO to issue instructions providing for measures for the public, civil society and the media to access procurement processes; scrutinise procurement; and monitor high-value or complex procurement.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to protecting Accounting Officers or Accounting Authorities from criminal or civil liability for anything done in good faith unless such person acts negligently.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 54 of the Bill states: "A person who exercises a power or performs a duty in terms of this Act is not liable for any loss or damage suffered or incurred by any person arising from a decision taken or action performed in good faith in the exercise of a power or performance of a duty in terms of this Act"

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the harmonisation of the legislation applying to public procurement.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill aims to create a single regulatory framework for public procurement and eliminate fragmentation in laws which deal with procurement in the public sector and, among others, provide for— • the establishment of a Public Procurement Office within the National Treasury and its functions; • the functions of provincial treasuries; • the functions of procuring institutions; • measures pertaining to the integrity of the procurement process; • a preferential procurement framework; • general procurement requirements; • enabling regulations on a procurement system including different methods of procurement and different regulations for different types of procurement; • the use of information and communication technology in procurement; • dispute resolution mechanisms; and • the repeal and amendment of certain laws

Actions on recommendations

To ensure that Parliament is sufficiently resourced to hold the Executive to account, the National Treasury will engage with Parliament to determine the most appropriate way to give effect to the Commission’s recommendations on the funding of Parliament.

Progress

In the last 12 months, 10 content advisers supporting 10 committees have been appointed, 3 in the process of being appointed; 4 legal advisers to increase drafting and related capacity have since been appointed, 3 more are in the process of being appointed. 5 researchers have been appointed, recruitment for 11 researchers is underway. All critical appointments aimed at addressing capacity constraints are being made.

Actions on recommendations

The centralisation of procurement will be pursued only where it is feasible and where the benefits are likely to outweigh the costs in terms of reduced flexibility and departmental accountability for spending, delivery and outcomes. A return to a fully centralised system is unlikely to improve the integrity and efficacy of procurement. However, it is recognised that extreme decentralisation has also made the procurement system more vulnerable. A multi-pronged approach is required, which builds the state’s capacity in transversal contracts, reduces fragmentation, consolidates legislation, ensures enhanced regulatory and oversight capacity, and enhances transparency.

Progress

The Public Procurement Bill envisages a multi-pronged approach, which builds the state’s capacity in transversal contracts, reduces fragmentation, consolidates legislation, ensures enhanced regulatory and oversight capacity, and enhances transparency.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to institutionalising lifestyle audits for all senior managers and officials involved in supply chain management.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill empowers the Minister of Finance to issue regulations regarding life style audits for procurement officials.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring provincial treasuries have consequence management mechanisms in place for recalcitrant a head of department or chief financial officer.

Progress

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

This is no longer relevant given changes in the accounting rules.

Progress

This is no longer relevant given changes in the accounting rules.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include noting the recipient of the transferred funds in departments’ financial statements to enable consequence management where funds have not been used for the allocated purpose.

Progress

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to ensuring compliance with transformation imperatives.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill requires that National Treasury introduce uniform treasury norms and standards for all procuring institutions, and that these advance advance transformation, beneficiation and industrialisation.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring project deliverables are included in business plans and effectively monitored.

Progress

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

The National Treasury has initiated the process to amend the SARS Act to implement the recommendations of the Nugent Commission, including providing for an open, transparent and competitive process for the appointment of the SARS Commissioner and the appointment of adequate oversight mechanisms such as an Inspector-General. Legislation will be tabled by June 2023.

Progress

Work on the drafting of amendments to the SARS Act is underway.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 20 reads as follows: If a procuring institution transfers funds to a person or organisation other than an organ of state to perform a function on behalf of the procuring institution in terms of legislation authorising it, any procurement required to perform the function must be in accordance with this Act.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 20 reads as follows: If a procuring institution transfers funds to a person or organisation other than an organ of state to perform a function on behalf of the procuring institution in terms of legislation authorising it, any procurement required to perform the function must be in accordance with this Act.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include standardised guidelines for the appointment of implementing agents.

Progress

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include the use of implementing agents, the use of transfer payments, re-prioritisation of budgets, oversight responsibilities of officials and structures, ensuring adequate accountability, and the keeping of reliable financial records.

Progress

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

Government is considering – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – the recommendation that no service provider may be awarded a tender or may conclude any contract with a public institution unless it has produced proof of relevant qualifications, skills experience or expertise required to perform the work. It is intended that this legislation be sent to Parliament before the end of this financial year.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill provides a list of offences which criminalise, among others, causing "loss of public assets or funds as a result of a wilful act or gross negligence in the implementation of this Act". Furthermore the Bill provides for custodial sentencing for anyone who connives or colludes to commit a corrupt, fraudulent, collusive or coercive or obstructive act related to procurement under this Act.

Actions on recommendations

Government is giving consideration – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – to prohibiting the awarding of a tender unless the responsible official has satisfied themselves that the service provider is qualified. It is intended that this legislation be sent to Parliament before the end of this financial year.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 55 sets provides a list of offences including 55(1)(f) which criminalises causing "loss of public assets or funds as a result of a wilful act or gross negligence in the implementation of this Act."

Actions on recommendations

Measures to prevent the cession of rights by tender contractors unless disclosed in bid documents should make provision for instances where amendments to company ownership, such as mergers and acquisitions, make the cession of rights necessary and legally permissible.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill empowers the Public Procurement Office to issue binding instructions on procurement.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to regulations to provide clear guidance on the processes to be followed when procuring from a sole source. It should be noted that there are certain goods and services that are provided by limited suppliers due to the uniqueness of the product or service they provide. While it is necessary to tighten regulations with respect to sole providers, it is not feasible to completely do away with these types of deviations.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill provides the circumstances under which procurement can be done when procuring from a sole source, or other deviations. It also prescribes the procedures that must be followed.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to better guidance and training of public procurement officials.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill aims to create a single regulatory framework for public procurement and eliminate fragmentation in laws which deal with procurement in the public. It has as the first of its objectives to "introduce uniform treasury norms and standards for all procuring institutions to implement their procurement systems".

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring feasibility reports and business plans are available and approved prior to any funds being transferred to a service provider.

Progress

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

To ensure that Parliament is sufficiently resourced to hold the Executive to account, the National Treasury will engage with Parliament to determine the most appropriate way to give effect to the Commission’s recommendations on the funding of Parliament.

Progress

Parliament is in ongoing consultations with National Treasury for more resources in fulfilment of its constitutional mandate.

Actions on recommendations

The matter of statutory frameworks for financial information-sharing partnerships has been included in the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, which has been tabled in Parliament and is currently before the NA Finance Portfolio Committee. This Bill aims to address the deficiencies identified by the Financial Action Task Force (FATF) and International Monetary Fund in their mutual evaluation of South Africa in 2021.

Progress

The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act (GLAA) became law in December 2022. The GLAA amended the Companies Act, Trust Property Control Act, Nonprofit Organisations Act, Financial Intelligence Centre Act, and Financial Sector Regulation Act. Amendments to the Companies Act, Trust Property Control Act and Nonprofit Organisations Act. All necessary regulations required by GLAA are now in effect, and the affected agencies (CIPC, Masters Office, NPO Directorate at the Department of Social Development) have been implementing systems to capture beneficial ownership information. The anti-money laundering regime is also being strengthened by: •Building the capacity to supervise designated non-financial businesses and professions that are at risk of abuse by money launderers; and •Strengthening the system for managing cross-border flows of cash. SA’s law enforcement agencies are collaborating more closely to prioritise money laundering investigations and prosecutions, especially those that relate to crimes that generate large volumes of illicit proceeds: corruption, tax evasion and fraud. Asset recovery relating to corruption and money laundering cases enrolled for prosecution has been prioritised in all AFU Regions. The Inter-Departmental Committee on Anti-Money Laundering and Terror Financing, work is implementing plans to address the shortcomings identified by FATF together with the work already underway.

Actions on recommendations

The matter of statutory frameworks for financial information-sharing partnerships has been included in the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, which has been tabled in Parliament and is currently before the NA Finance Portfolio Committee. This Bill aims to address the deficiencies identified by the Financial Action Task Force (FATF) and International Monetary Fund in their mutual evaluation of South Africa in 2021.

Progress

The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act (GLAA) became law in December 2022. The GLAA amended the Companies Act, Trust Property Control Act, Nonprofit Organisations Act, Financial Intelligence Centre Act, and Financial Sector Regulation Act. Amendments to the Companies Act, Trust Property Control Act and Nonprofit Organisations Act. All necessary regulations required by GLAA are now in effect, and the affected agencies (CIPC, Masters Office, NPO Directorate at the Department of Social Development) have been implementing systems to capture beneficial ownership information. The anti-money laundering regime is also being strengthened by: •Building the capacity to supervise designated non-financial businesses and professions that are at risk of abuse by money launderers; and •Strengthening the system for managing cross-border flows of cash. SA’s law enforcement agencies are collaborating more closely to prioritise money laundering investigations and prosecutions, especially those that relate to crimes that generate large volumes of illicit proceeds: corruption, tax evasion and fraud. Asset recovery relating to corruption and money laundering cases enrolled for prosecution has been prioritised in all AFU regions. The Inter-Departmental Committee on Anti-Money Laundering and Terror Financing, work is implementing plans to address the shortcomings identified by FATF together with the work already underway.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the establishment of a professional body to which all officials who work in the area of public procurement should belong.

Progress

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill establishes the Public Procurement Office (PPO) and requires the PPO to : - promote and implement necessary measures to maintain the integrity of procurement; - ensure the professional development and training of officials involved in procurement. In addition, the Bill empowers the Minister to issue regulations regarding competency requirements for officials involved in procurement. These provisions support the professionalisation of the public service.

Actions on recommendations

Parliament is developing its own response to the Commission.

Progress

The Joint Standing Committee on Intelligence (JSCI) has considered the recommendation of amending section 6(1) of the Oversight Act and resolved that there was no need to amend section 6(1) as section 6(2) already made provision for reporting. Joint rule 1(2)(l) read with joint rule 8(5) in Schedule B of the Rules of the JSCI provide for special reporting of the JSCI. It defines the “special report” as a report that is prepared by the Committee at the request of Parliament, the President or the Minister responsible for each Service, or when the Committee deems it necessary, and tabled or submitted as provided for in section 6(2) of the Act. In terms of this defined special report, the Committee may report to Parliament, through the special report mechanism, at any given time as and when the Committee deems it necessary.

Actions on recommendations

Parliament is developing its own response to the Commission.

Progress

The constitutional oath of office for all Members of Parliament should serve as a guideline for executing Members’ constitutionally mandated functions. Sections 58 and 71 of the Constitution, 1996 which deal with privilege and which provide that Cabinet members, Deputy Ministers, members of the National Assembly, delegates to the National Council of Provinces and local government representatives participating in the Council, have freedom of speech in the Assembly and the Council and in its committees, subject to its rules and orders and are not liable to civil or criminal proceedings, arrest, imprisonment or damages for anything that they have said in, produced before or submitted to the Assembly, the Council or any of its committees, or anything revealed as a result of anything that they have said in, produced before or submitted to the Assembly, the Council or any of its committees. Section 6 of the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act, 2004 already provides for the protection of members for the exercise of their constitutional responsibilities. The Section provides for the privileges, immunities, independence and protection of members and Parliament.

Actions on recommendations

Since the recommendation for the direct election of the President would require constitutional amendments, it is a matter that should be considered by the various political parties represented in Parliament and by the Parliament’s Joint Constitutional Review Committee.

Progress

The recommendation is a matter for consideration by Parliament and political parties represented in Parliament.

Actions on recommendations

Parliament is developing its own response to the Commission.

Progress

Parliament’s Rules Committee did not agree with the view expressed by the State Capture Commission that parliamentary oversight may be better served if more chairpersons were elected from minority parties but reiterated that Section 57 of the Constitution (1996) empowered the Assembly to determine its internal arrangements, proceedings and procedures.

Actions on recommendations

Parliament is developing its own response to the Commission.

Progress

Parliament has issued a report indicating that the matter of oversight monitoring, tracking and advisory is currently receiving attention, with the focus being on capacity more than on establishing new structures.

Actions on recommendations

The implementation of lifestyle audits for members of the National Executive is in process and is being managed by the Office of the Director-General in the Presidency.

Progress

The process has been delayed due to challenges with procurement of service providers.

Actions on recommendations

A decision on the establishment of a commission of inquiry into PRASA will be held in abeyance until the completion of the investigations underway by the Directorate for Priority Crime Investigation and the Special Investigating Unit (SIU), and the review by the PRASA board. A determination will then be made on whether these processes have sufficiently addressed the matters raised by the Commission and whether a commission of inquiry would serve that purpose. A proclamation will be issued to broaden the scope and set timeframes for an expanded SIU investigation into PRASA based on the evidence before the State Capture Commission. Additional dedicated resources will be brought in to augment the existing investigators who are also looking into other state-owned enterprises.

Progress

A decision on the establishment of a Special Commission of Inquiry into PRASA is currently held in abeyance, pending the finalisation of investigations by the DPCI and the SIU.

Actions on recommendations

A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The Bill will amend the National Strategic Intelligence Act (39 of 1994), Intelligence Services Act (65 of 2002) and other relevant intelligence laws so as to, among others, strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.

Progress

Although the role of the Inspector-General of Intelligence is defined in the Intelligence Services Oversight Act, through the legislative review process that is currently underway, the Act will be amended to ensure that the Office is strengthened. The SSA and the Office of the Inspector General continue to interact on the capacity requirement of the OIGI. All Auditor-General employees who are assigned to SSA have been issued with appropriate security competence certificates. The certification gives them access to view and audit appropriate documents.

Actions on recommendations

The State Security Agency has finalised and is implementing new gun control directives for the agency in line with applicable laws.

Progress

The recommendation has been fully implemented.

Actions on recommendations

The State Security Agency is reviewing human resource directives to ensure they are in line with the Commission’s recommendations on recruitment criteria. This is expected to be completed by March 2023.

Progress

Chapter V of the Intelligence Services Regulations provides for the requirements and procedures for recruitment, selection and appointment. SSA continues to implement the Regulations when positions are filled. Further, the relevant HR Directive was reviewed as part of the process to review other directives.

Actions on recommendations

The peddling of fabricated information has been counteracted by the resuscitation of systems and control measures in the State Security Agency.

Progress

The recommendation has been implemented. The systems and control measures to prevent peddling of fabricated information have been resuscitated.

Actions on recommendations

The new leadership at the State Security Agency has developed and is implementing a comprehensive response plan to address the recommendations of the Commission. It is factoring in the recommendations contained in the Annual Report of the Joint Standing Committee on Intelligence for the financial year ending 31 March 2020, including the period up to December 2020.

Progress

The recommendations that are contained in the annual report of the Joint Standing Committee on Intelligence were implemented.

Actions on recommendations

A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The amendment will also include provisions to strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.

Progress

The SSA continues to implement the findings from the Inspector General of Intelligence. The Office of the Inspector General of Intelligence has recently issued the findings on SSA. SSA has since responded to the findings which will also be presented to the Joint Standing Committee on Intelligence in November 2023. This demonstrates that the findings of the Inspector General are taken seriously by the Agency.

Actions on recommendations

A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The amendment will also include provisions to strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.

Progress

The recommendation has been implemented. Through the resuscitation of governance and operational structures, all resources are accounted for.

Actions on recommendations

The new leadership at the State Security Agency has developed and is implementing a comprehensive response plan to address the recommendations of the Commission. This response plan is being driven by a multi-disciplinary team made up of internal resources and through enlisted expertise in restructuring and reforming organisations.

Progress

This is in progress.

Actions on recommendations

A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The Bill will amend the National Strategic Intelligence Act (39 of 1994), Intelligence Services Act (65 of 2002) and other relevant Intelligence laws so as to, among others, strengthen the oversight of the intelligence agencies by bodies such as the Inspector-General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.

Progress

The State Security Agency reports that the Inspector-General of Intelligence has access to all information that is relevant for him to conduct his oversight work.

Actions on recommendations

A new General Intelligence Laws Amendment Bill has been drafted and is expected to be tabled in Parliament before the end of this financial year. The Bill will amend the National Strategic Intelligence Act (39 of 1994), Intelligence Services Act (65 of 2002) and other relevant Intelligence laws so as to, among others, strengthen the oversight of the intelligence agencies by bodies such as the Inspector General of Intelligence, the Joint Standing Committee on Intelligence and the Auditor-General of South Africa.

Progress

Following Cabinet approval the Bill was submitted to Parliament. On 12 October 2023, the Speaker of the National Assembly announced the names of the members nominated by their parties to serve on the Ad Hoc Committee on the General Intelligence Laws Amendment Bill.

Actions on recommendations

National Treasury is working with the Auditor-General of South Africa (AGSA) and the State Security Agency (SSA) on tightening financial controls, especially with respect to cash, and improving accountability through a multi-pronged audit process (involving the AGSA, the Inspector-General of Intelligence and SSA Internal Audit).

Progress

The recommendation has been implemented and there is improved accountability and control of cash in SSA.

Actions on recommendations

The new leadership at the State Security Agency has developed and is implementing a comprehensive response plan to address the recommendations of the Commission. It is factoring in the recommendations contained in the Annual Report of the Joint Standing Committee on Intelligence (JSCI) for the financial year ending 31 March 2020, including the period up to December 2020.[1] This response plan is being driven by a multi-disciplinary team made up of internal resources and through enlisted expertise in restructuring and reforming organisations.

Progress

The response plan is being implemented.

Actions on recommendations

All investigations that have been initiated by Project Veza were handed over to an independent forensic investigation firm. Several reports have been completed and submitted to the Director-General. The said reports were subsequently shared with the National Prosecuting Authority’s Investigative Directorate (ID) for further investigations and possible prosecutions. All future reports from the forensic firm will follow this approach. Consequence management is already being implemented via disciplinary actions.

Progress

The SSA continues to work closely with the National Prosecuting Authority’s Investigating Directorate (ID) for further investigations and possible prosecutions.

Actions on recommendations

New National Security Policy and Strategy documents have been drafted and presented to the National Security Council. The policy, which returns to the principles of the White Paper on Intelligence, will be recommended to Parliament for the commencement of public consultations before the end of this financial year.

Progress

The National Security Strategy was presented to various forums and will be presented to Cabinet as soon as all consultations have been concluded.

Actions on recommendations

No member of the Executive responsible for intelligence, whether the President, Minister or Deputy Minister, may be involved in the operational matters of the State Security Agency. The review of the Intelligence Services Act that is currently underway will consider how to give practical effect to this principle.

Progress

Implementation of this recommendation is dependent on the promulgation of the General Intelligence Laws Amendment Act which provides for the review of Section 10(3) of the Intelligence Services Act.