National Youth Development Agency Act 54 of 2008
REPUBLIC OF SOUTH AFRICA
Vol. 523 Cape Town 8 January 2009 No. 31780
THE PRESIDENCY No. 13 8 January 2009
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 54 of 2008: National Youth Development Agency Act, 2008.
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Act No. 54, 2008 NATIONALYOUTHDE~~ AGENCY ACT, 2008
(English text signed by the President.) (Assented to 23 December 2()()8.)
ACT To provide for the establishment of the Nadonal Youth Development Agency aimed at creadng and promodng coordinadon in youth development matters; to provide for the objects and functions of the Agency; to provide for the manner in which it is to be managed and governed; to provide for the reguladon ofits stalfmatters and financial d'airs; to provide for the administradon of the fund referred to in the DemutuaUsadon Levy Act, 1998 by the Agency under a new name; to repeal the National Youth Commission Act, 1996; and to provide for matters connected therewith.
RECOGNISING the heroic struggles of generations of the youth to bring about freedom and democracy in South Africa;
AND SINCE youth development is central in the reconstruction and development of South Africa;
AND WHEREAS the government must take reasonable measures, within its available resources, to achieve progressive development of South Africa's youth;
AND WHEREAS the interventions on youth development in South Africa must be implemented in a cohesive, seamless and integrated manner;
THEREFORE the spirit and form of the National Youth Development Agency must give resonance to youth development in South Africa.
BE IT THEREFORE ENACTED by Parliament of the Republic of South Africa, as follows: ARRANGEMENT OF SECTIONS
I. Definitions 2. Establishment of the Agency 5 3. Objects of the Agency 4. Principles of youth development 5. Functions of the Agency 6. Reporting by the Agency 7. Role of organs of state, companies and civil society organisations in youth 10
development 8. Control and management of affairs of Agency 9. Composition, appointment and conditions of service of the Board 10. Disqualification, removal from office and resignation of director of Board 11. Meetings of Board 15
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12. Committees of Board 13. Appointment of Chief Executive Officer 14. Employment contract and performance agreement of Chief Executive Officer 15. Duties of Chief Executive Officer 16. Appointment of staff 17. Delegation and assignment 18. Funding and investments 19. Regulations 20. Judicial management and liquidation of Agency 21. Transitional provisions 22. Repeal of laws 23. Short title and commencement
1. In this Act, unless the context otherwise indicates "Agency" means the National Youth Development Agency establisbed by section 2; "Board" means the Board of the Agency referred to in section 8; "organ of state" has the meaning assigned in 239 of the Constitution of the Republic of South Africa,1996; "Integrated Youth Development Strategy" means the Integrated Youth Devel opment Strategy for South Africa referred to in section 3(a); "financial year" means the period from 1 April in any year to 31 March in the next year; "members" means members of the Board appointed in terms of section 9; "prescribed" means prescribed by regulation in terms of section 19; "Public Finance Management Ad" means the Public Finance Management Act, 1999 (Act No.1 of 1999); "regulation" means any regulation made in terms of section 19; "this Ad" includes any regulation promulgated in terms of this Act; "Umsobomvu Fund" means the Umsobomvu Fund as referred to in the Demutualisation Levy Act, 1998 (Act No. 50 of 1998); "Umsobomvu Youth Fund" means the section 21 company established in 2001 and funded from proceeds of the Demutualisation Levy Act, 1998; and "youth" means persons between the ages of 14 and 35.
EstabUshment of Agency
2. (1) A juristic person to be known as the National Youth Development Agency is hereby established.
(2) The Agency is a national public entity as defined in section 1 of the Public Finance Management Act
Objeds of Agency
3. (1) The objects of the Agency are to- (a) develop an Integrated Youth Development Plan and Strategy for South Africa; (b) develop guidelines for the implementation of an integrated national youth
development policy and make recommendations to the President; (c) initiate, design, co-ordinate, evaluate and monitor all programmes aimed at
integrating the youth into the economy and society in general;
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(d) guide efforts and facilitate economic participation and empowerment. and achievement of education and training;
(e) partner and assist organs of state, the private sector and non-governmental organisations and community based organisations on initiatives directed at attainment of employment and skills development;
(f) initiate programmes directed at poverty alleviation, urban and rural develop ment and the combating of crime, substance abuse and social decay amongst youth;
(g) establish annual national priority programmes in respect of youth develop ment;
(h) promote a uniform approach by all organs of state, the private sector and non-governmental organisations. to matters relating to or involving youth development; and
(i) endeavour to promote the interest generally of the youth, particularly young people with disabilities.
(2) Nothing contained in this Act precludes the Agency from directly implementing any programme or intervention aimed at advancing its objects in terms of this Act.
Principles of youth development
4. Youth development interventions and programmes must be guided by the following principles:
(a) recognition of the manner in which youth has been affected by the imbalances of the past and the need to redress these imbalances through more equitable policies. programmes and the allocation of resources;
(b) promotion of equal opportunity and equal treatment of youth and the promotion of a gender-inclusive approach to the development ofyouth. where the social infiuences of gender, disability, the impact of sexism and the particular circumstances of young women are recognised;
(c) creation of an environment which supports the continued development and learning of youth;
(d) promotion of youth's participation in 0) democratic processes;
(ii) community and civic decision-making; and (iii) development at all levels;
(e) recognition of youth development as an important mandate; (f) responsiveness to the needs, aspirations and challenges of youth in a realistic
and participatory manner; (g) recognition of the importance of cultural and spiritual diversity as a basis for
youth development; (h) promotion of the value of sustainability in order to ensure that the needs of
youth are met without compromising the ability of future generations to meet their own needs;
(i) recognition in youth development initiatives of the peculiar needs of rural youth; and
(j) transparency, accountability and accessibility.
5. (1) The Agency must. in order to achieve its objects, (a) establish competencies and capabilities in its operations including the
following functional areas (i) National Youth Service and Social Cohesion;
(ii) Economic Participation; (iii) Policy, Research and Development; (iv) Governance, Training and Development; (v) Youth Advisory and Information Services; and
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(vi) National Youth Fund; (b) establisb offices of the Agency at provincial and local levels and appoint the
necessary personnel to those offices. (2) The Agency may, in order to achieve its objects,
(a) carry out or cause to be carried out any investigation that it deems necessary; (b) consider sucb recommendations. suggestions and requests concerning youth
affairs as it may receive from any source; or (c) conduct or cause to be conducted sucb researcb as it may deem necessary.
(3) The Agency must manage and administer Umsobomvu Fund. (4) The Agency must, for purposes of subsection (3) and within its available
resources. amongst others (a) provide career guidance services; (b) provide access to information regarding products and services of the National
Youth Fund; (c) create and administer databases of employment opportunities; (d) provide financial assistance to youths to enable them to further their careers; (e) provide financial assistance to small. micro and medium enterprises. and
cooperatives owned by youth; if) provide mentoring services aimed at empowering youths in the economy; (g) provide bridging programmes for youths to facilitate the transition from
scbool or training to the work environment; (h) provide training regarding the concepts and principles of entrepreneursbip
and business to youths; (i) provide training relating to the personal development of youths; (j) provide training and guidance relating to the establishing and managing of
businesses for youths; (k) provide training for unemployed youths to enbance their life and professional
skills whicb would enable them to be integrated into the economy; (I) provide opportunities for training. that will promote service to communities
and the nation at large; and (m) provide sucb other services as may be necessary to acbieve the aim
contemplated in subsection (3).
Reporting by Agency
6. (1) The Agency must, every three (3) years, submit to the President a report on the status of youth.
(2) The Agency must annually submit to the President a report on- (i) the progress on the implementation of this Act;
(ii) the financial status of the Agency; and (iii) any other matter relating to youth development.
(3) The President must table the report referred to in subsection (1) in Parliament within a reasonable time.
Role of Organs of State, Companies and Civil Society organisations in Youth Development
7. (1) Organs of state must (a) take national priorities in respect of youth development into account in
planning their activities; and (b) submit, in the prescribed manner, annual reports to the Agency regarding their
implementation of youth development priorities. (2) The Agency must publisb a report after it has been tabled in Parliament.
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(3) The Agency must lobby companies and close corporations which employ more than twenty (20) employees, and civil society organisations to implement youth development priorities established by it.
Control and management of atTain of Agency
8. The affairs of the Agency must be managed by the Board, which must 5 (a) determine the operational policy of the Agency; and (b) exercise control generally over the exercise of its powers and the execution of
Composition, appointment and conditions of service of the Board
9. (1) The Board consists of 10 (a) seven members, two (2) of whom are executive directors; and (b) the ChiefExecutive Officer, who is an ex-officio member of the Board without
voting rights. (2) Members must be appointed by the President on the recommendation of
Parliament. 15 (3) Members must be appointed in a manner ensuring
(a) participation by youth in the nomination process; (b) transparency and openness; and (c) that a short-list of candidates for appointment is published.
(4) Members must reflect the demographics and geographical spread of the Republic. 20 (5) (a) The President must designate one of the members as the chairperson and
another member as a deputy chairperson and both are executive directors referred in subsection (1).
(b) Members who are not executive directors serve on a part-time basis. (6) Members hold office for a period of three (3) years. 25 (7) The deputy chairperson must, when the chairperson is absent or unable to perform
his or her duties, act in his or her stead and when so acting, perform any function of the chairperson.
(8) The President must publish the appointment of a member in the Government Gazette. 30
(9) A member appointed to fill a vacancy holds office for the unexpired portion of the term of the member he or she replaces.
(10) The conditions of service of members are determined by the President in consultation with the Minister of Finance.
(l1) Members who are employed by an organ of state are not entitled to remuneration, 35 or any allowance, but must be reimbursed for out-of-pocket expenses by the Board.
DisquaUfication, removal from oOlce and resignation of members
10. (1) A person may not be appointed or continue to serve as a member ifhe or she (a) is an unrehabilitated insolvent; (b) has been convicted and imprisoned without the option of a fine, or fined more 40
than the prescribed amount, for theft, fraud, forgery, perjury, an offence in connection with the promotion., formation or management of a company, any violation of the Public Finance Management Act or any offence involving dishonesty;
(c) has, as a result of improper conduct, been removed from an office of trust; or 45 (d) has been declared by a court to be mentally ill or unfit.
(2) The President may, on recommendation of the Parliament, remove a member from office if the member
(a) commits a misconduct; (b) is unable to perform his or her duties efficiently; 50
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(c) is absence from three (3) consecutive meetings of the Board without permission of the Board or good cause;
(d) becomes disqualified as contemplated in subsection (1). (3) A member may resign by giving thirty (30) days notice in writing to the
Chairperson of the Board. (4) The President may suspend a member from office any time after the start of the
proceedings of Parliament for the removal of a member.
Meetings of Board
11. (1) The Board must meet at least four times a year at such times and places as the Chairperson may determine.
(2) The Chairperson may, on two (2) days notice, call a special meeting of the Board, which must be held at such time and place as he or she may direct.
(3) A decision of the Board must be taken by resolution of the majority of the members present, and in the event of an equality of votes, the person presiding at the meeting in question has a casting vote in addition to his or her deliberative vote.
(4) A quorum is constituted by four (4) members, which must include the Chairperson or the Deputy Chairperson.
(5) A member must act impartially. in good faith and without fear. favour or prejudice and is subject only to the Constitution and law.
(6) Ifa member has, in relation to a matter to be considered at a meeting of the Board, any interest which precludes that member from acting in a fair, unbiased and proper manner, the member may not
(a) participate in that meeting of the Board; or (b) be present at the venue where the meeting is held.
(7) If, during the course of any proceedings of the Board, there is reason to believe that a member has any interest contemplated in subsection (6), that member must immediately disclose the nature of his or her interest and leave the meeting in question so as to enable the remaining members to discuss the matter and determine whether that member may be allowed to participate in the proceedings.
(8) The disclosure and the decision taken by the remaining members, must be recorded in the minutes of the proceedings in question.
Committees of Board
12. (1) The Board may establish Committees, including the: (a) Executive Management Committee; (b) Credit Risk Committee; (c) Human Resource and Remuneration Committee; (d) Audit Committee. in accordance with Treasury guidelines regarding the
formation of Audit Committees as provided for in section 77 of the PFMA; and
(e) Development Committee to assist in the performance of its functions.
(2) The Board must determine the composition. rules and procedures of committees established in terms of this section.
(3) The Board may invite persons who are not members of the Board to serve on any of its committees, but such persons may not be appointed as chairpersons of such committees.
(4) The Board may dissolve or reconstitute a committee as is necessary. (5) Any decision taken by a committee established under this section must be ratified
by the Board.
Appointment of Chief Executive Omcer
13. (1) The Board must appoint a suitably qualified person as the Chief Executive Officer.
(2) The Chief Executive Omcer is an employee of the Agency and is accountable to the Board.
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(3) The Chief Executive Officer must (a) ensure that the functions of the Agency in terms of this Act are performed; (b) report to the Board on the proper functioning of the Agency; and (c) complete a report on the activities of the Agency for each financial year in
accordance with the Public Finance Management Act and submit the report to the Board for approval.
(4) The Chief Executive Officer holds office for an agreed term not exceeding five years and may be reappointed upon the expiry of that term of office.
(5) H the Chief Executive Officer is unable to fulfil his or her functions, the Board must appoint an acting Chief Executive Officer to perform the functions of the Chief Executive Officer until the Chief Executive Officer resumes his or her duties or a new Chief Executive Officer is appointed.
Employment contract and performance agreement of Chief Executive Ofticer
14. (1) The Board must conclude a written performance agreement with the Chief Executive Officer
(a) within a reasonable time after the appointment of the Chief Executive Officer; and
(b) thereafter, annually within one month of the commencement of each financial year.
(2) The performance agreement must include- (a) measurable performance objectives and targets that must be met, and must
provide for the time-frames within which those performance objectives and targets must be met;
(b) standards and procedures for evaluating performance and intervals for evaluation; and
(c) the consequences of substandard performance. (3) The employment contract of the Chief Executive Officer must incorporate in an
appropriate form, section 57 of the Public Finance Management Act.
Duties of Chief Executive OtIicer
15. The Chief Executive Officer is responsible for, amongst others: (a) exercising an appropriate level of leadership for the organization; (b) effectively communicating a vision, management philosophy. and business
strategy to the Agency's employees; (c) the general and active management of the business affairs of the Agency; (d) the general supervision and direction of all other officials of the Agency; (e) developing and recommending to the Board a sound long·term strategy for the
Agency that meets the needs of the Agency, government, communities, employees, and other stakeholders;
(f) ensuring that the strategies of the Agency are effectively implemented with timely progress towards strategic objectives;
(g) obtaining and allocating resources consistent with strategic objectives and making timely adjustments in strategies when market conditions and other forces demand a change;
(h) carrying out a comprehensive budgeting process and monitoring the Agency's financial performance against the budget;
(i) submitting annual reports, financial statements and financial position of the Agency to the Board; and
(j) developing an annual strategic plan and budget in accordance with the Public Fmance Management Act.
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Appointment of staff
16. (1) The Chief Executive Officer must (a) in consultation with the Board, appoint executive managers of the Agency,
which may include a Chief Operations Officer and a Chief Financial Officer; and
(b) appoint staff to assist the Agency in carrying out its functions. (2) The Board must in consultation with the Minister of Finance approve the
remuneration, allowances, benefits and other terms and conditions of appointment of members of staff.
Delegation and assignment
17. (1) The Board may delegate any of its powers or assign any of its duties to the Chief Executive Officer or any employee of the Agency.
(2) The Chief Executive Officer may delegate any power or assign any duty conferred or imposed upon the Chief Executive Officer by or under this Act to
(a) any other employee of the Agency with appropriate knowledge and experience; or
(b) any other person, after consulting the Board. (3) A delegation or assignment under subsections (1) and (2) must be in writing and
(a) may be subject to any conditions determined by the Board or the Chief Executive Officer;
(b) does not prevent the exercise of that power or the performance of that duty by the Board or the Chief Executive Officer; and
(c) may be withdrawn or amended by the Board or the Chief Executive Officer. (4) A delegation by the Board ofany ofthe powers entrusted or delegated to it in terms
of the Public Finance Management Act must be in accordance with section 56 of that Act.
Funding and investments
18. (1) The funds of the Agency consist of (a) money received from the Umsobomvu Fund in terms of the Demutualisation
Levy Act; (b) money appropriated by Parliament for that purpose; (c) interest on investments of the Agency; (d) money lawfully received from any other source; and (e) donations and contributions lawfully received by the Agency from any other
source. (2) The Agency may invest any of its funds not immediately required
(a) subject to any investment policy that may be prescribed in terms of section 7(4) of the Public Finance Management Act; and
(b) in such manner as may be approved by the Minister ofFinance.
19. The President may, after consultation with the Board, make regulations regarding
(a) any matter which in terms of this Act mayor must be prescribed; (b) any action in order to promote compliance with this Act; and (c) any ancillary or incidental administrative or procedural matter that it is
necessary to prescrihe for the proper implementation or administration of this Act.
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Judicial management and liquidation of Agency
20. Despite the provisions of any other law, the Agency may not be placed under judicial management or in liquidation except if authorised by an Act of Parliament adopted specially for that purpose.
Transitional provisions 5
21. (1) In order to effect the transitional arrangements envisaged in this section, representations must made to the Minister ofFinance for the dissolution ofUmsobomvu Youth Fund as a section 21 company in terms of the Companies Act, 1973 (Act No. 61 of 1973) and the classification of the Agency as a public entity.
(2) As soon as possible after this Act takes effect the President must, in consultation 10 with the Minister of Finance,
(a) transfer the assets, rights, obligations and liabilities of Umsobomvu Youth Fund and the National Youth Commission to the Agency; and
(b) subjectto section 197 of the Labour Relations Act, 1995 (Act No. 66 of 1995), transfer staff ofUmsobomvu Youth Fund and the National Youth Commission 15 to the Agency.
(3) A person transferred to the Agency remains subject to any decisions, proceedings, rulings and directions applicable to that person immediately before the transfer date.
(4) Any proceedings pending against such person immediately before the transfer date must be disposed of as if that person had not been transferred. 20
(5) For purposes of Income Tax, 1962 (Act No. 58 of 1962), no change of employer must be regarded as having taken place when employment is taken up at the Agency by a person contemplated in subsection (1).
(6) The Registrar of Deeds must make the necessary entries and endorsement for the transfer of any property in terms of subsection (1) and no office fee or any other charge 25 is payable in respect of that entry or endorsement.
(7) This Act does not affect the validity of any transaction, project, business deal and programmes which were already undertaken or pending by Umsobomvu Youth Fund and National Youth Commission before the fixed dated.
(8) The operations ofUmsobomvu Youth Fund and the National Youth Commission 30 must be dealt with as if this Act had at all times been in force.
(9) In order to implement this Act, the President must on the recommendation of Parliament appoint a task team of consultants to perform joint audits in respect of personnel, budgets, finances, information management and equipment of Umsobomvu Youth Fund and National Youth Commission. 35
(10) The President must report to Parliament on the progress of the task team.
Repeal of laws
22. Subject to section 21, the National Youth Commission Act, 1996 (Act No. 19 of 1996), and the National Youth Commission Amendment Act, 2000 (Act No. 19 of2000), are hereby repealed. 40
Short tide and commencement
23. This Act is called the National Youth Development Agency Act, 2008, and comes into operation on a date to be fixed by the President by proclamation in the Gazette.