National Development Agency Act

27 November 1998 No. 1541.

27 November 1998 It is hereby notified following Act which information:- that the President has assented is hereby published to the for general Hierby word bekend gemaak dat die President keuring geheg het aan die onderstaande Wet wat hierby algemene inligting gepubliseer word:- sy goed- ter No. 108 of 1998: National Development Agency Act, 1998. No. 108 van 1998: Wet op die Nasionale Ontwikkelingsagent- skap, 1998. 2 No. 19520 GOVERNMENT GAZETTE. 27 NOVEMBER 1998 Act No. 108, 1998 NATIONAL DEVELOPMENT AGENCY ACT. 1998 (Erlglish text signed by the Presiderlt.) (Assented to 19 Nm~ember 1998.) ACT sustainable partnership To establish a National Development Agency aimed at promoting an appropriate society and organisations the objects and in which it is to be managed and functions of the Agency; to determine governed; its staff matters and financial affairs; and to provide for connected matters. to eradicate poverty and its causes; the Government to determine the manner to regulate between civil and B E IT ENACTED follows:- by the Parliament of the Republic of South Africa, as CONTENT OF ACT of NDA’s Board, filling of vacancies and remuneration of Board’s members of National Development Agency 1. ? _. 3 _ . 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 13. Definitions Establishment Objects of NDA Duties and powers of NDA Composition Term of oflice, and disqualification, Meetings of Board Management committee Chief executive officer and other staff Financing Audit and annual report Delegation Regulations Short title and commencement 5 10 1.5 Definitions

1. In this Act, unless the context (i) (ii) (iii) (iv) (v) (vi) (vii) 20 (iv) the chief executive officer appointed indicates otherwise- “Board” means the board of the NDA referred to in section 5( 1); (vii) “chief executive officer” means terms of section 9(l); “civil society organisation” means a trust, company or voluntary association for a public purpose, but does not include an organ of state; (ii) established “financial year” means the period from 1 April in any year to 3 1 March in the 25 next year; (i) “Minister” means the Minister of Finance; “NDA” means the National Development Agency, established by section 2; (vi) “this Act” includes any regulation made and in force in terms of section 13. 30 (iii) (v) in Establishment of National Development Agency

2. A juristic person to be known as the National Development Agency is hereby established. -I No. 19520 GOVERNMENT GAZE-I-FE, 27 NOVEMBER 1998 ActNo.108,1998 NATIOKAI- DEVELOPMENT AGENCY ACT, 1998 Objects of NDA 3. (1) The primary object of the NDA is to contribute towards poverty and its causes by-granting of- funds to civil society organisations the eradication of for the purposes (N) carrying out projects or programmes aimed at meeting development needs of 5 (0) poor communities; strengthening involved and the institutronal in direct service provision (2) The secondary objects of the NDA are- capacity of other civil society organisations to poor communities. (c:) to promote- (i) consultation, dialogue and sharing of development experience between civil society organisations and relevant organs of state; and (b) (ii) debate on development to undertake development research policy. policy; and and publication aimed at providing the basis for Duties and powers of NDA 4. (1) The NDA must- from the Government of the Republic, foreign for development to its objects referred to in donors and international and other national act as a key conduit for funding governments work to be carried out by civil society organisations; develop, conduct and co-ordinate policy relevant section 3; contribute enable create and maintain limited not geographical relevant organs of state and other stakeholders. the scope and subject matter of the information to, distribution, them to carry out development work effectively; and a database on civil society organisations, towards building and share including, but their their work and in that database with the capacity of civil society organisations to (2) The NDA may- (a) grant money from its funds-- (i) in accordance with such criteria and procedures as the NDA determines: and (ii) with due regard to the NDA’s primary object referred to in section 3(l), to any civil society organisation that organisa- tion intends to undertake or is undertaking; for any project or programme (0) make recommendations indirectly constraining effective development exercise any power conferred by any other provision of this Act; and in the Republic; (c) (d) generally, do everything which is necessary to legislation with regard to achieve its objects referred to and policies directly or in section 3. (3) Any grant in terms of subsection to its members or office bearers except as reasonable (2)(a) to any civil society organisation may not for compensation be distributed services rendered. (4) Any civil society organisation to which a grant is made in terms of subsection (2)(a) must submit to the NDA- (a) (b) regarding audited financial statements in the form prescribed by regulation in respect of each narrative (i) an analysis of every project or programme report containing- financial the use of that grant at the intervals and in terms of section 13; and year of the organisation, a comprehensive, in respect of which that grant and is made and a description of all other activities of the organisation; an audited financial (ii) not later than the date prescribed by regulation report, in terms of section 13. 10 15 20 25 30 35 40 45 50 h No. 19520 GOVERNMENT GAZE-ITE, 27 NOVEMBER 1998 Act No. 108,1998 NATIONAL DEVELOPMENT AGENCY ACT, 1998 (5) Any grant in terms of subsection which the civil society organisation (4). with subsection (2)(n) must be sufficient to defray the expenses in question will have to incur in order to comply Composition of NDA’s Board, filling of vacancies and remuneration 5. ( 1) The NDA acts through a board consisting of- the Government appointed to represent by the Minister of six members Finance after consultation with the Ministers of Education, Health, Housing, Public Works. Trade and Industry, Welfare and Population Development, and Water Affairs and Forestry and such other Ministers as the Minister of Finance considers necessary nine members Minister after an open and transparent process of considering candidates presented of representatives field, established by the Minister the by a short list of an equal number and of experts in the development to the Minister by a panel, comprising from State Departments society organisations to consult; and to represent appointed civil for that purpose. of the members of the Board referred (2) For the purpose of the appointment (l)(b), subsection invite nominations the Minister must through of persons as candidates the media and by notice for such appointment. to in in the Gazette (3) At least two members of the Board must have proven knowledge or experience of tinancial management. (4) When the members of the Board are appointed and the panel is established, the need for the Board and the panel composition of the Republic must be considered. to reflect broadly the race, gender and geographic (5) (a) The first meeting of the Board must be held at such time and place and chaired by such member as the Minister determines. (b) At that meeting the members of the Board must elect- (i) a chairperson a deputy (ii) and (6). from among the members referred to in subsection h c airperson from among the members referred to in subsection (l)(b); and (l)(a) 5 10 15 20 25 (6) Any vacancy on the Board must be filled in the same manner in which the member 30 who vacates the office was appointed. (7) If the office of chairperson or deputy chairperson of the Board becomes vacant, a chairperson or deputy chairperson, with subsection (5). as the case may be, must be elected in accordance (8) If both the chairperson and deputy chairperson of the Board are absent or unable any other the Minister may designate to perform any function of the chairperson, member to act as chairperson during such absence or incapacity. (9) No vacancy in the number the corporate existence of the NDA or any of members of the Board affects or impairs rights, duties or powers conferred or imposed by this Act upon the NDA or the Board. in the office of the chief executive officer or a deficiency ( 10) No decision of the Board is valid unless passed at a meeting- at which the quorum required by section 7(3) was present; and (a) (b) held in accordance with the other provisions of section 7. (11) A member of the Board who is not in the full-time employment of the State is paid such remuneration and allowances as the Minister determines. Term of office, and disqualifications, of members of Board 6. (1) The Board must be reconstituted every three years in accordance with section 5( 1) to (4). (2) A member of the Board is eligible of the Board for more than two consecutive (3) A person who has been appointed for reappointment terms. to fill a vacancy on the Board is regarded as but may not serve as member having served the full term of three years for which the Board was constituted. (4) A member of the Board must vacate office if- the Minister, on the recommendation office for reasons which are just and fair; (a) of the Board, terminates the member’s 35 40 45 50 55 5 10 8 No. 19520 GOVERNMENT GAZE-I-I-E, 27 NOVEMBER 1998 Act No. 108,1998 NATIONAL DEVELOPMENT AGENCY ACT, 1998 (b) (c) (d) the member the member the chairperson’s permission; the member resignation to the chairperson. is convicted of an offence of which dishonesty is absent from two or more meetings in one calendar year without is an element; resigns after giving at least 30 days notice in writing of the Meetings of Board 7. (1) The Board must meet at least four times a year at such times and places as the Board determines. (2) The chairperson, or in the absence of the chairperson, (u) may convene a special meeting of the Board; (b) must convene such meeting within 14 days of the receipt of a written request signed by at least five members of the Board to convene such meeting. the deputy chairperson- (3) The quorum (4) The Board determines (5) The chief executive officer may attend and take part, but may not vote, in a 15 for a meeting of the Board is at least eight members of the Board. the procedure at its meetings. meeting of the Board. (6) A decision of the Board must be taken by resolution of the majority of members present at any meeting of the Board and, in the event of equality of votes, the person presiding has a casting vote in addition to his or her deliberative vote. (7) A member of the Board must, as such member, act impartially and in good faith 20 and without applicable law. fear, favour or prejudice and subject only to the Constitution and other (8) If a member of the Board has, in relation meeting of the Board, any interest which precludes unbiased member may not- and proper manner in respect of his or her membership to any matter that member to be considered at a from acting in a fair, of the Board, the 25 (u) vote or in any other manner participate (b) be present at the venue where the meeting is held. in that meeting of the Board; Management committee thereafter, the Board must establish a 30 8. (1) At its first meeting or as soon as possible committee consisting of- management (u) (b) (c) the chairperson two members of the Board referred Board; and two members of the Board referred Board. and deputy chairperson of the Board; to in section 5(l)(a), appointed by the to in section 5(l)(b), appointed by the 35 (2) At least one member of the management committee must have proven knowledge or experience of financial management. (3) The chairperson deputy chairperson, and deputy chairperson respectively, of the management committee. of the Board are the chairperson and 40 (4) The management committee must perform such duties and may exercise such powers of the Board as it delegates to that committee in terms of section 12(2). (5) The management to perform and committee must meet as often as is necessary its duties and powers at such times and places, and in accordance with such exercise procedure, as that committee determines. (6) The chief executive officer may attend and take part in, but may not vote at, a meeting of the management committee. Chief executive officer and other staff 9. (1) The Board must appoint a chief executive officer for the NDA, who is also the accounting officer of the NDA. (2) The chief executive officer- (a) must manage the affairs of the NDA and report on those affairs to the Board as often as the Board requires; 45 50 10 No. 19520 GOVERNMENT GAZETIE. 27 NOVEMBER 1998 Act No. 108,1998 NATIONAL DEVEILOPMENT AGENCY ACT, 1998 (6) must as accounting officer, account for all money received by the NDA, the utilisation of such money and the assets of the NDA; and (c) must perform such duties and may exercise such powers of the Board as it delegates to the chief executive officer in terms of section 12(2). (3) The chief executive officer may do everything which is necessary to perform his 5 or her duties in terms of this Act. (4) The NDA must enter into a written performance objectives, with the chief executive officer relating functions in terms of this Act. contract, stipulating measurable to the performance of that officer’s (5) The NDA and the chief executive officer may in writing amend the performance 10 contract from time to time. (6) The chief executive officer is appointed- (u) (b) for such period, but not exceeding subject to such conditions (7) On such conditions as the Board, subject executive officer may appoint such employees perform its duties and exercise its powers. five years, as the Board determines; as the Board, subject to subsection to subsection as are necessary (8), determines, to enable and (8), determines. the chief the NDA to (8) The NDA must pay to its chief executive officer and employees out of its funds subsidies and other benefits as the Minister determines. such remuneration, allowances, Financing 10. (1) The funds of the NDA consist of- (u) money appropriated by Parliament; (b) donations and contributions (c) interest on investments income (d) lawfully of the NDA; and lawfully derived from any other source. received by the NDA from any source; (2) The NDA must utilise- (a) its funds to cover costs in connection with the performance in terms of this Act; duties and powers and exercise of its (b) any money contemplated in subsection (l)(a) in accordance with the (c) referred statement any donation or contribution with the conditions to in subsection (3); in subsection imposed by the donor or contributor contemplated in accordance (l)(b) in question. 15 20 25 30 (3) The NDA must, to the Minister submit in each financial year at such time as the Minister determines, for approval- (u) a business plan for the NDA, containing measurable objectives and the other 35 information information contemplated in section as the Minister determines; 11(3)(b) and and (c) and such further (b) a statement of the NDA’s estimated income and expenditure, three financial years or such longer or shorter period as the in respect of the following Minister determines. (4) In any supplementary financial year. financial statements of the NDA’s estimated the NDA may submit year to the Minister income and expenditure for approval for that (5) The NDA may not enter into any financial commitment beyond its approved budget and its accumulated (6) The NDA may- reserves. 40 45 (u) invest any unexpended Deposits; or portion of its funds with the Corporation for Public (b) with the approval of the Minister, dispose of that portion in any other manner. (7) The NDA may establish such reserve funds, and deposit therein such amounts, as 50 the Minister approves. Audit and annual report 11. (1) The Auditor-General must audit the financial statements of the NDA. (2) The NDA must table a report on its activities during a financial year in Parliament within three months after the end of that financial year. 55 (3) The report must- 12 No. 19520 GOVERNMENT GAZETTE, 27 NOVEMBER 1998 Act No. 108,1998 NATIONAL DEVELOPMENT AGENCY ACT, 1998 (4 W (4 to which include a balance sheet and a statement of income and expenditure certified by the Auditor-General; state the extent its objects referred to in section 3 and the measurable objectives as set out in its business plan during contain efficient and effective application of resources and specifically a comparison between planned and actual performance the financial year concerned; information indicators as set out in that business plan. the NDA has achieved or advanced relevant performance the economic, regarding and Delegation (a) (b) Finance- 12. (1) The Minister may delegate to the Director-General: any power conferred on the Minister by this Act, except the power, in terms of section 13, to make regulations; any duty imposed on the Minister by this Act, except any duty regarding appointment, contemplated (2) The Board may delegate and in sections 5 and 6(4)(a). to the management referred to in section 8( 1) or the chief executive officer any power or duty conferred or imposed on the Board by this Act, except the power to grant money as contemplated the the Board in section 4(2)(a). of office, of the members termination committee of (3) The chief executive officer may delegate to any employee of the NDA any power or duty conferred or imposed on that officer by this Act, except any duty as accounting officer of the NDA. (4) Any power or duty delegated in terms of subsection exercised or performed subject delegation considers necessary. to such conditions (2) or (3) must be as the person or body that made the (l), (5) Any delegation in temls of subsection (l), (2) or (3)- (a) must be in writing; (b) does not prohibit the person or body that made the delegation from exercising that power or performing that duty; (c) may at any time be withdrawn or amended in writing by that person or body. Regulations

13. The Minister may, after consultation with the Board and by notice in the Gazette, make regulations which- (a) may or must be prescribed (b) are necessary for the effective administration of this Act. in terms of this Act; Short title and commencement

14. This Act is called the National Development Agency Act, 1998, and takes effect on a date determined by the President by proclamation in the Gazette. 5 10 15 20 25 30 35