LEGISLATIVE UPDATES

National Development Agency Bill

 1. Introduction

In April 1996, Cabinet established an Advisory Committee to investigate and make recommendations on a future relationship between government and civil society organisations (CSOs), in order to enhance capacity for the implementation of the Reconstruction and Development Programme (RDP) with the view to eliminating poverty and its root causes.

In March 1997, Cabinet accepted the Advisory Committee’s recommendations to set up a National Development Agency (NDA) which will be responsible for disbursing government funding to civil society organisations and to provide a forum for policy co-ordination and interaction between government and CSOs. A Ministerial Implementation Committee was tasked with setting up the NDA and steering the development of this bill.

It is envisaged that the National Development Agency (NDA) will promote an appropriate and sustainable partnership between the government and civil society organisations that will work together in the fight against poverty and its causes.

The main purpose of the NDA is to channel funds from the South African government, foreign governments, and other national and international donor agencies to CSOs to carry out development programmes aimed at meeting the needs of poor communities, and to strengthen institutional capacity of NGOs and CBOs where it is weak. Its secondary task is to create and maintain a database on CSOs to facilitate information sharing, and to promote consultation, dialogue and sharing of development experience between CSOs and relevant government sectors.

To achieve these goals, the NDA may, with the approval of the Minister of Finance, raise money by way of loans from any source, or grant money from its own funds to CSOs according to set criteria and procedures. It may also make recommendations on laws and policies which directly or indirectly constrain effective development.

To qualify for a grant from the NDA, a CSO must submit to the NDA, the following:

• an audited financial statement regarding the use of the grant at the required intervals and in the form prescribed; and
• a comprehensive narrative report containing a description of the organisation’s activities and an analysis of the specific programme for which funding had been granted, accompanied by an audited financial report.

The NDA will act through a board consisting of:

• six government representatives, appointed by the Minister of Finance after consultations with the Ministers of Education, Health, Housing, Public Works, Trade and Industry, Welfare and Population Development, and Water Affairs and Forestry, or any other Ministry considered necessary;
• nine representatives from civil society organisations appointed by the Minister of Finance after an open and transparent selection process overseen by a panel, comprising an equal number of representative from various State Departments and of experts in the development field.

The Bill proposes that the Minister must, through the media and by notice in the Government Gazette, call for nominations of persons as candidates for such appointments. It further stipulates that at least two members of the Board must have proven knowledge or experience of financial management, and that both the selection panel and the Board must reflect the race, gender and geographic composition of South Africa.

At the first meeting of the Board, a chairperson must be elected from among the CSO representatives, whilst the deputy chairperson can be chosen from either government or CSO representatives. Should any member vacate office, the vacancy must be filled in the same manner as the original appointment had been made.

The Board must meet at least four times a year, and has to be reconstituted every three years in the same manner as above. Any member is eligible for reappointment but may not serve for more than two consecutive terms.

4. Appointment of Management Committee, Chief Executive Officer and Other Staff

The bill mandates the Board to establish, at its fist meeting or soon thereafter, a management committee, consisting of the chairperson and deputy chairperson of the Board, who will also serve as chairperson and deputy chairperson of the management committee. Additional members on the management committee will include two representatives from government and two members representing CSOs on the Board. At least one member of the management committee must have proven knowledge or experience of financial management. The management committee must execute duties assigned or delegated to it by the Board, and can meet as often as the committee determines.

The Bill also provides for the appointment of a Chief Executive Officer for the NDA. Acting simultaneously also as the accounting officer for the NDA, the chief executive officer must manage the affairs of the NDA, account for all money received, expenses incurred and assets acquired as well as any other duty assigned to him or her by the Board. Subject to conditions determined by the Board, the chief executive officer may also appoint other employees in order for the NDA to performs its duties and exercise its powers.

Clauses 10 and 11 of the Bill regulates the financial affairs, and auditing by the Auditor-General, of the NDA as well as annual reporting to Parliament by the NDA. Provision is also made for the Minister of Finance, the Board and the chief executive officer to delegate certain of their respective responsibilities.

The Bill is to be voted on in Parliament on 6 November 1998, and will take effect on a date determined by the President by proclamation in the Government Gazette.

The PHILA programme is supported by a grant from the Henry Kaiser Family Foundation.

PHILA

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