Global Courant
The Financial Affairs Amendment Act (FMAB) is currently undergoing the parliamentary process, with officials recently deliberating on a committee report on the bill.
Broadly speaking, the bill aims to amend various other legislations relating to pensions, the Land Bank, the accountancy profession and the Financial Commission.
The laws that need to be changed include:
Affiliated Institutions Pension Fund Act Pensioenfonds Act Temporary Workers Pensions Military Act Government Employees Pensions Act Financial and Tax Commissions Act Land and Agricultural Development Bank Act (Land Bank Act) Accountancy Profession Act Accountancy Profession Amendment Act
The FMAB was first introduced to the National Assembly in early September last year and went through several deliberations and policy considerations before reaching its current form.
On Wednesday (June 14), during a parliamentary finance committee hosted virtually by Yunus Carrim, the chairman of the Standing Finance Committee, the select finance committee reported and responded to certain allegations with the bill.
The committee noted that the FMAB is proposing amendments in eight different pieces of legislation; however, Finance Minister Enoch Godongwana has asked the committee to reject the proposed amendments to the Finance and Taxation Commission Act and the other two related to the accounting profession.
In response, the committee said the proposed changes to the three laws are largely technical in nature and aim to align provisions and remain relevant.
Pensions
With regard to pensions, the bill aims to amend certain definitions and other provisions within the Affiliated Institutions Pension Fund Act and the Agency Workers Pension Fund Act to align them with the exclusive administration of the minister responsible for finance and to remove references to other ministers. update.
The Military Pension Act is expected to expand retirement benefits to life partners for members in an update that would remove a discriminatory provision. The commission noted that there are no anticipated material financial implications for the state as a result of these proposed changes.
Other amendments related to pensions specifically target government employees in an effort to merge the member institution’s pension fund with the government employee pension fund. The purpose of the amendment to the pension law for government employees is to simplify administration and make the “clean-break” principle applicable to members of the Associated Institutions Pension Fund (AIPF) through amalgamation into the Government Employees Pension Fund (GEPF) ).
Accountant profession
The bill amends the Accountancy Profession Act, so that the Enforcement Committee on IOUs can refer cases of serious misconduct to the Disciplinary Committee for a sanction.
According to the Parliamentary Monitoring Group (PMG), planned amendments to the Accountancy Profession Act are contained in Article 21 of the bill and it is proposed that: does not justify the sanction of deregistration or disqualification from registration as an auditor, must he follow the admission of guilt procedure or any such warrant sanction, he must refer the case to the Disciplinary Commission for sanctions.”
“The amendment to the Accounting Profession Amendment Act, 2021 is contained in clause 22. The amendment aims to provide that the same processes apply to alleged improper conduct of accountants, whether committed before or after the Accountancy Profession Amendment Act, 2021 (Accounting Profession Amendment Act, 2021 ),’ the PMG added.
During the meeting, the committee found that the sanctions imposed on people who violate the law are far too lenient and further noted that the Enforcement Committee is only allowed to introduce certain types of sanctions and, in cases where the violation warrants a more severe sanction, is referred to the disciplinary committee.
The commission further stated that recommendations that time limits for audit contracts should be enshrined in law.
Soil bank
Changes to the Land Bank include the replacement of the definition of minister and the replacement of the provision for judicial management with corporate bailout in terms of the Companies Act.
Before the last select committee meeting, there was growing tension around amendments to the land bank, with some officials arguing that all proposed amendments related to the land bank should be removed until further policy discussions on how to repurpose the land bank to get. further argued that the provisions relating to the Land Bank should be treated separately.
The committee now finds that the amendments to the Land Bank are largely technical in nature and aim to align the provisions with the implementation by the Minister of Finance. The committee further noted that while the proposed amendment to the Land Bank Act is technical in nature, it could assist the Bank in its liability resolution and allow it to better fulfill its mandate to support the agricultural sector.
See the full bill below:
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