Former MPs who have served at least five consecutive years in Parliament will receive four free single air-travel tickets for every year of service up to a maximum of 15 years, according to a National Assembly motion on Thursday.
The economy class air tickets are ”for the personal use” of an ex-MP and his/her accompanying partner. The tickets are forfeited if not used.
This would mean an MP with 10 years’ service is eligible for 40 single domestic economy class air tickets a year.
The cost of this allowance could run into millions of rands every year, depending on how many of the current MPs do not return and how many choose to take it up.
Minister of Finance Trevor Manuel announced a R400-million boost for the pensions of retiring MPs in his medium-term budget policy statement earlier in November.
Thursday’s resolution by African National Congress chief whip Nkosinathi Nhleko also comes in the wake of a R4-million travel voucher fraud uncovered in Parliament this year.
Six travel agencies are under investigation for altering parliamentary travel vouchers. Parliament has insisted there was no proof of any MP’s involvement.
In another development in Parliament, the Road Accident Fund (RAF) Amendment Bill, aimed at improving the functioning of the debt-ridden agency, could be shelved in the new year if the ministry and the parliamentary transport committee do not resolve differences over the legislation.
Transport officials are consulting about the committee’s proposal that the legislation be split into two Bills. One would deal with the proposal to pay instalments to road accident survivors for ongoing medical treatment and compensation for loss of income, together with a lump sum pay-out; while a second would focus on provisions to streamline RAF operations.
”We will consult and return with a view next year,” ministry of transport spokesperson Ndivhuwo Mabaya confirmed. ”That’s where we left the Bill.”
With Parliament going into recess on Friday, the committee will only meet again in late January. The current proposal emerged last week when MPs across party lines expressed ”grave misgivings” over the RAF’s capacity to implement the instalment payments.
Transport committee chairperson Jeremy Cronin said he hoped the matter would be resolved next year: ”The situation of the fund poses real challenges which require urgent attention. The amendment legislation is only one part of the matter.”
The fund has a R713-million deficit, according to the medium term budget policy statement. Its internal audit also highlighted serious financial management shortcomings.
The African Christian Democratic Party has called for the Bill to be scrapped. ACDP MP Steve Swart said the instalment plan was not feasible: ”The RAF could not convince [transport committee] members that it had the capacity to implement such a system effectively.”
However, Mabaya said concern over the RAF’s capacity to manage the new system was an operational matter for the fund board. The amendment was always meant to be an interim measure to ensure the fund had sufficient cash and that ”road accident victims are not victims twice”.
It was ”of serious concern that interest groups hijacked this process,” Mabaya added, referring to personal injury lawyers’ strong opposition to the instalment payments.
A controversial proposal to deduct private insurance pay-outs from RAF liabilities was dropped following sharp criticism of the Bill by business, the insurance industry and civil society during recent public hearings in Parliament.