Durban - A legal policy institute has called for reconsideration of a new bill that establishes a Royal Household Trust, saying it weakens scrutiny of public spending on Zulu King Goodwill Zwelithini.
The trust is envisaged to generate revenue for the royal household in addition to funding from the KwaZulu-Natal government.
However, the provincial bill stipulates that the Public Finance Management Act applies only to those public funds allocated to the trust by the legislature.
It is this section and others that prompted the Centre for Law and Society at the University of Cape Town to make a submission to the legislature way after the deadline.
The submission formed part of the agenda provided to the premier and royal household portfolio committee meeting last week, but was not considered.
In its submission dated June 22, the centre said it recently became aware of the bill’s publication, and had been unable to meet the deadline for submission.
The centre also said the bill undermined the principles of democracy for people living within the former KwaZulu homeland, which largely coincided with the domain of the royal household.
“The bill seems to lack proper mechanisms for accountability by the trust, including financial accountability.”
It added that the bill was so relaxed that it granted greater independence to the trust, though it received large funding from the public purse.
“It is worrying that a portion of the trust’s funds may be subjected to the accountability and management mechanisms contained in (the new) Act.
“It is further unclear from the bill how the distinction between the trust’s public and private funding will be determined, enforced and managed,” the centre said in its submission.
It said the trust, made up of public-funded staff and receiving public funding, should not be exempt from financial accountability as a public institution.
“The bill should emphasise the need for accountability in the management of the royal household’s funds, and include strong mechanisms for monitoring and reporting on all sources of income, as well as spending from all funds made available to the trust.”
But, the provincial government’s chief directorate on state law advisory services said the bill contained provisions which included the audit of the trust’s financial statement by the Auditor-General, and an annual report.
In its advice to the committee, it said the possible exemptions of the trust were an indication that the Public Finance Management Act remained the basis for sound financial control.
The MEC for Finance, after consulting the premier and the board, was authorised to make regulations regarding financial administration, management and control of the trust, it said.
“Reporting requirements are already dealt with, but could be expanded on the regulations.”
It insisted that the tender policies, as provided for in the Public Finance Management Act, would be complied with.
Although the directorate said the issues raised by the centre demonstrated legitimate concerns, it nevertheless advised against effecting amendments to the bill.
Daily News