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Role of the Central Government in the Financing of Public Institutions


5. Before Parliament may approve or renew a decision to transfer funds to a province (a) the Auditor-General must report to Parliament; and (b) the province must be given an opportunity to answer the allegations against it and to state its case before a committee.


Procurement (getting, securing or acquiring) 1. When an organ of state in the national, provincial or local sphere of government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.


2. Subsection (1) does not prevent the organs of state or institutions referred to in that subsection from implementing a procurement policy providing for – (a) categories of preference in the allocation of contracts; and (b) the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination.


3. National legislation must prescribe a framework within which the policy referred to in subsection (2) may be implemented.


Government Guarantees The national government, a province or a municipality may guarantee a loan only if the guarantee complies with any conditions set out in national legislation.


National legislation referred to in subsection (1) may be enacted only after any recommendations of the Financial and Fiscal Commission have been considered. Each year, every government must publish a report on the guarantees it has granted.


Remuneration of Persons Holding Public Office 1. An Act of Parliament must establish a framework for determining – (a) the salaries, allowances and benefits of members of the National Assembly, permanent delegates to the National Council of Provinces, members of the Cabinet, Deputy Ministers, traditional leaders and members of any councils of traditional leaders; and


(b) the upper limit of salaries, allowances or benefits of members of provincial Legislatures, members of executive councils and members of municipal councils of different categories. National legislation must establish an independent commission to make recommendations concerning the salaries, allowances and benefits referred to in subsection (1).


Parliament may pass the legislation referred to in subsection (1) only after considering any recommendations of the commission established in terms of subsection (2).


The national executive, a provincial executive, a municipality or any other relevant authority may implement the national legislation referred to in subsection (1) only after considering any recommendations of the commission established in terms of subsection (2).


National legislation must establish frameworks for determining the salaries, allowances and benefits of judges, the Public Protector, the Auditor-General, and members of any commission provided for in the Constitution, including the broadcasting authority referred to in section 192.


Financial and Fiscal Commission


Establishment and Functions There is a Financial and Fiscal Commission for the Republic which makes recommendations


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