Public Investment Corporation Amendment Bill Under the Spotlight

National Treasury

The standing committee on finance will speed up processing of Committee and Private Members Bills that seek to ensure greater accountability to Parliament and compulsory representation of workers on the Public Investment Corporation’s (PIC) board.

Parliament announced this in a statement following briefings on Steinhoff to the Standing Committee on Finance, Standing Committee on Public Accounts and Portfolio Committee on Public Service and Administration in parliament recently.

The Public Investment Corporation Amendment Bill was tabled in parliament in January 2018.

The private member’s bill is designed to provide for parliamentary oversight in respect of the appointment of the Public Investment Corporation’s (PIC) board chairperson.

It was drawn up by David Maynier, a Democratic Alliance member of parliament.

According to the explanatory summary published in Government Gazette 41215 last year, the bill also aims to regulate other aspects of the board’s composition and to provide for greater transparency in operations of the PIC.

The committee will also ‘expeditiously process legislation to give Independent Regulatory Board of Auditors (IRBA) more teeth to act against irregularities by auditors and write to the Minister of Finance, Mr Malusi Gigaba, to request that amendments by department be brought to parliament by the end of March for finalization”.

In another statement, parliament indicated that, going forward, “consideration will also need to be given to whether there is a need for policy and regulatory changes, to reduce the prospects of Steinhoff-type failures in the future.”

In a briefing, national treasury referred to the twin peaks model of financial sector regulation contained in the Financial Sector Regulation Act.

The model will improve market conduct, combat financial crime, strengthen financial stability and widen access to financial services.

The act is yet to come into effect. Draft regulations to the act were published for comment in December 2018.

Sabinet Cape Town Office

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