Defence Special Account Amendment Act

6 October 2005 No. 28105 THE PRESIDENCY No. 990

6 October 2005 It is hereby notified that the President has assented to the following Act, which is hereby published for general information:– No. 18 of 2005: Defence Special Account Amendment Act, 2005 AIDS HELPLINE: 0800-123-22 Prevention is the cure 2 No.28105 GOVERNMENT GAZETTE. 6 OCTOBER 2005 Act No. 18,2005 DEFENCE SPECIAL ACCOUNT AMENDMENT ACT, 2005 GENERAL EXPLANATORY NOTE: ] Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line indicate insertions in existing enactments. (Eiiglish text signed by the President.) (Assented to 3 Octobei- 2005.) ACT To amend the Defence Special Account Act, 1974, so as to bring it in line with certain Acts of Parliament; and to provide for matters connected therewith. E IT ENACTED by the Parliament of the Republic of South Africa, as B follows:- Amendment of section 1 of Act 6 of 1974, as substituted by section 21 of Act 102 of 1976 and amended by section 1 of Act 17 of 1981, section 10 of Act 113 of 1984 and section 1 of Act 71 of 1995 5

1. Section 1 of the Defence Special Account Act, 1974 (hereinafter referred to as the principal Act), is hereby amended- ( a ) by the deletion of paragraph ( b ) ; and ( 0 ) by the substitution for paragraph (cA) of the following paragraph: “(cA) the proceeds derived from the sale, in accordance with the provisions 10 of any law, of [armaments] defence materiel, as defined in section 1 of the [Armaments Development and Production Act, 1968 (Act No. 57 of 1968)] Armaments Corporation of South Africa, Limited Act, 2003 (Act No. 51 of 2003), which have been purchased in accordance with the provisions of section 2(2)(a) of this Act;”. 15 Repeal of section 1A of Act 6 of 1974

2. Section 1A of the principal Act is hereby repealed. Amendment of section 2 of Act 6 of 1974, as substituted by section 2 of Act 17 of 1981 and amended by section 5 of Act 96 of 1982, section 7 of Act 142 of 1992 and section 3 of Act 71 of 1995 20

3. Section 2 of the principal Act is hereby amended- ( N ) by the substitution in subsection ( 1 ) for paragraph ( a ) of the following paragraph : “ ( a ) Subject to the provisions of this Act. the moneys in the account shall he State moneys for the purposes of the [Exchequer Act, 1975 (Act No. 66 of 197S)I Public Finance hlana~ement Act. 1999 (Act No. 1 of 1999). and the accounting ofticel- of the Department of Defence shall be __ charged with the responsibility of administering and accounting for the moneys i n the account received by him and nioneys paid f1-om the 25 4 N0.28105 GOVERNMENT GAZETTE. 6 OCTOBER 2005 Act No. 18,2005 DEFENCE SPECIAL ACCOUNT AMENDMENT ACT. 2005 account by him e in connection with the special defence activities and purchases of the Department of Defence referred to in paragraph (a) of subsection (2) and the expenditure referred to in paragraph ( b ) of that subsection.”; ( b ) by the substitution in subsection (1) for paragraph (c) of the following 5 paragraph: “ ( c ) The provisions of the [Armaments Development and Produc- tion Act, 19681 Armaments Corporation of South Africa, Limited Act, 2003 (Act No. 5 I of 2003), shall, subject to the provisions of section 5 of this Act. apply in respect of the expenditure incurred by the Corporation from the account and the administration of and accounting for the moneys paid therefrom by it, to the exclusion of the provisions of the [Exchequer Act, 19751 Public Finance Management Act, 1999, but, in so far as the auditing by the Auditor-General in terms of the said section 5 is concerned, the provisions of [sections 5(9) and 6(1), (2) and (3)(u) of the Auditor-General Act, 1989 (Act No. 52 of 198911 the Public Audit Act, 2004 (Act No. 25 of 2004), shall apply.”; ( c ) by the substitution for subsection (2) of the following subsection: “(2) The moneys in the account shall- ( ( I ) [with the approval of the Minister of Finance] be utilized to defray the expenditure incurred in connection with such special defence activities in connection with the functions contained in the Defence Act, [1957 (Act No. 44 of 1957)] 2002 (Act No. 42 of 2002), and purchases of the Department of Defence and the Corporation as the Minister of Defence may from time to time approve; ( 6 ) if the account has been credited with moneys referred to in section I(b), also be utilized to defray any expenditure which would normally have been defrayed by the Department of Defence out of moneys appropriated by [the Appropriation or other Act in question] Parliament.”; and ( d ) by the substitution for subsection (4) of the following subsection: “(4) Notwithstanding anything to the contrary in any law contained, the banking account for moneys in the account shall be kept in the Paymastel--General’s Account of the National Treasury, and the pay- ments referred to in subsection ( 3 ) [, as well as payments resulting from commitments entered into under section IA,] shall be made from the latter account: Provided that the Director-General: [State Expenditure] National Treasury or any person in the [Department of State Expenditure] National Treasury designated by him or her, may authoi-ize a person or persons employed by the Department of Defence in the Defence Secretariat or the Corporation to sign warrant vouchers necessary for the said payments.”. 10 15 20 25 30 35 40 Substitution of section 3 ofAct 6 of 1974, as amended by section 7 ofAct 142 of 1992

4. The following section is hereby substituted for section 3 of the principal Act: 45 “Investment of balances

3. Any moneys standing to the credit of the account which are not required for immediate use or as a reasonable working balance. shall be in4ested with the [Public Investment Commissioiers] corporation established by section 2 of the Corporation for Public Deposits Act, 1984 50 (Act No. 46 of 1984). and may be withdrawn when required for use.”. Short title and con~n~encement

5. This Act is called the Defence Special Account Aniendnient Act. 1,005. and comes into operation on a date determined by the President by proclamation in the Gn:Prte.