STATEMENT ON CABINET MEETING

Issued by: Office of the President

Cabinet held its regular meeting today, 1 Aril 1998 and considered a number of issues pertaining to governance and legislation.

The meeting received a briefing from the Auditor-General and a delegation from his Office on the operations of the AG's Office. The briefing was arranged at the AG's request, as part of his Office's programme to interact with stakeholders, and in recognition of the responsibility and obligation on the part of both the AG's Office and the Executive to ensure good governance, transparency and efficient utilisation of resources.

Discussions were held in a spirit recognising the independence of the Auditor-General and the line of accountability of this Office to Parliament. On the other hand, it was also underpinned by the recognition of the responsibility of the Executive and legislatures to determine policy and appropriate mechanisms for its implementation.

In response to the proposal from the AG's Office for better liaison between themselves and the Executive, Cabinet decided to set up a Team consisting of Minister Trevor Manuel, Zola Skweyiya and Valli Moosa to follow up matters arising from the briefing. Cabinet resolved that both the content and style of interaction should be seen to, and in fact, enhance the independence of the Auditor-General as outlined in the constitution.

Cabinet was informed that the Commission set up by the President on the preparation and processing of the report on an alleged destabilisation plot had completed its work and handed the report to the President's Office. The President is studying the report and will make whatever public announcements may be necessary in due course.

The meeting approved the appointment of members of the Boards of Directors of the National Electricity Regulator as well as the Central Energy Fund and its subsidiaries: Strategic Fuel Fund Association, Mossgas and Soekor, with effect from today. The Cabinet noted that the Minister had accepted the request by the erstwhile Chairman of the CEF, Mr DB Mkhwanazi to decline nomination for a further term. Cabinet thanked Mkhwanazi for his services and emphasised that the granting of this request did not drive from any presumption on its part about matters that are currently under investigation by the public Protector.

Cabinet endorsed the position of government that children and youth awaiting trial should not be detained in prison or police cells. In this regard, it agreed to the following:

• There will be a repeal of section 29 of the Correctional Services Act.
• New temporary legislation with a more restrictive provision thatn section 29 on pre-trial detention of children will be introduced within the Criminal Procedures Act to replace section 29 of the Correctional Services Act. This legislation will serve as a measure of last resort and will be repealed as appropriate secure care and other alternative placement options become available in each province.
• Children awaiting trial in prisons be ensured of special protective measures and services from the Departments of Welfare and Correctional Services.

Cabinet was briefed on the following matters:

• The upcoming visit of Deputy President Thabo Mbeki to the Far East; and the Finance Minister to the annual meetings of the IMF and associated bodies;
• Progress in ensuring government-wide and broader compliance with regard to the "Year 2000" computer programmes;
• The operations of a Director-Generals' Forum aimed at better co-ordination among departments;
• The agreement signed between the Minister of Finance and the Premiers of KwaZulu-Natal and the Eastern Cape to avail part of the R1,5-bn set aside in the 1997/98 budget to assist provinces with ummanageable deficits; and
• THe devaluation of the Rand against the US Dollar and Pound Sterling which is a reflection broadly of "purchasing power parity", and the unique strengths of these two currencies in particular.

Cabinet considered the following Bills and Papers for submission to Parliament:

• South African Police Service Amendment Bill; and Department of Correctional Services Bill, both subjected to amendments in consultations among relevant Ministers;
• Green Paper on Further Education and Training dealing with multi-skilling in broader education;
• Amendments to the "TRC Act" to extend the Amnesty Committee's period of operation;
• Repeal of the Sefalana Employee Benefits Organisation Act of the former Bophuthatswana and rationalisation of Sebo within new statutory arrangements;
• Sterlisation Bill dealing with circumstances under which such may be performed;
• Municipal Demarcation Bill establishing criteria and procedures for detention of municipal boundaries.

Cabinet also approved the proposals for the restructuring of the SA Housing Trust; as well as the establishment of the Coega Development Initiative Company by the Department of Trade and Industry, to facilitate the implementation of the project.

These and other matters will be elaborated upon by the relevant Departments and Ministries.

1 April 1998

Note that the names of the members of the boards referred to in the statement are available from the Department of Minerals and Energy Affairs.

For further enquiries contact: Joel Netshitenzhe 082-900-0083