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Act No. 38 of 2003: Higher Education Amendment Act, 2003

Reproduced by Sabinet Online in terms of Government Printer s Copyright Authority No. 10505 dated 02 February 1998 THE PRESIDENCY No. 1814 15 December 2003 It is hereby notified that the President has assented to the following Act which is hereby published for general informa- tion  No. 38 of 2003  Higher Education Amendment Act 2003. Reproduced by Sabinet Online in terms of Government Printer s Copyright Authority No. 10505 dated 02 February 1998 English text signed by the President. Assented to 10 December 2003. ACT To amend the Higher Education Act 1997 so as to provide for the regular reporting by the Council on Higher Education on the state of higher education to provide for consequential changes arising out of the incorporation of public higher education institutions in relation to labour and student matters to provide for the establishment of a National Institute for Higher Education in Mpumalanga and a National Institute for Higher Education in the Northern Cape to coordinate the regional provision of higher education and to provide for matters connected therewith. B E IT ENACTED by the Parliament of the Republic of South Africa as follows  Amendment of section 5 of Act 101 of 1997 1. Section 5 of the Higher Education Act 1997 hereinafter referred to as "the principal Act" is hereby amended by the substitution in subsection 1 for paragraph d of the following paragraph " d publish information regarding developments in higher education including [an annual report] reports on the state of higher education on a regular basis ". Amendment of section 24 of Act 101 of 1997 as amended by section 6 of Act 63 of 2002 2. Section 24 of the principal Act is hereby amended by the substitution for subsection 3 of the following subsection " 3 Sections 22 2 to 6 and 23 2 to 2H with the changes required by the context apply to an incorporation referred to in subsection 1 .". Insertion of sections 38A 38B 38C 38D 38E 38F 38G 38H and 381 in Act 101 of 1997 3. The following sections are hereby inserted in the principal Act after section 38  "Establishment of national institute for higher education 38A. 1 The Minister may establish a national institute for higher education as a juristic person in Mpumalanga and in the Northern Cape. 2 A national institute for higher education is managed governed and administered by a board. Reproduced by Sabinet Online in terms of Government Printer s Copyright Authority No. 10505 dated 02 February 1998 Functions of national institute for higher education 38B. The functions of a national institute for higher education are to a coordinate the regional provision of higher education b ensure the coherent provision of higher education through programme collaboration between public higher education institutions operating in the province in question c advise the Minister on matters relating to the coordination of the provision of higher education in the region in question and d perform any other duty which may be prescribed. Composition of board 38C. 1 The board of a national institute for higher education consists of a a chairperson and b not more than 10 ordinary members. 2 The board may co-opt persons to the board for a period determined by the board. 3 The chairperson and members contemplated in subsection 1 are appointed by the Minister from nominations received in the manner prescribed for that national institute for higher education. Term of office of chairperson and members 38D. The chairperson and an appointed member of the board hold office for a renewable period of four years. Vacation of office 38E. A person ceases to be a member of the board if he or she a resigns by giving written notice to the chairperson or in the case of the chairperson to the Minister b is absent from three consecutive meetings of the board without the leave of the chairperson c is declared insolvent is removed from an office of trust by a court of law or is convicted of an offence involving dishonesty or an offence for which the sentence is imprisonment without the option of a fine or d is declared unfit to attend to his or her personal affairs by a court of law. Filling of vacancies 38F. 1 In the event of a vacancy occurring in the office such vacancy is filled by the Minister in terms of section 38C 3 . 2 Any person appointed to fill a vacancy holds office for the unexpired portion of the vacating member's term. Funds of national institute for higher education 38G. 1 The funds of a national institute for higher education consist of a money appropriated by Parliament b donations or contributions c interest and d any other income received. 2 The board Reproduced by Sabinet Online in terms of Government Printer s Copyright Authority No. 10505 dated 02 February 1998 a must keep a record of all i funds received and spent ii assets and liabilities and iii financial transactions b must in each financial year submit to the Minister at the time and in the manner which the Minister may determine a statement of estimated income and expenditure for the ensuing financial year for the Minister's approval granted with the concurrence of the Minister of Finance c may in any financial year submit an adjusted statement of its estimated income and expenditure to the Minister for approval granted with the concurrence of the Minister of Finance and d may not incur any expenses which exceed the total amount approved in terms of paragraphs b and c . 3 If the Minister does not approve of the board's statement of estimated income and expenditure or adjusted statement of estimated income and expenditure it must submit a revised statement to him or her within a specified period. 4 a The money contemplated in subsection 1 must be used in accordance with the approved statement referred to in subsection 2 . b Any balance not spent within the specified financial year must be carried over as a credit to the following financial year. 5 Subject to subsection 4 the board may invest any portion of its funds in such manner as the Minister with the concurrence of the Minister of Finance may approve. Annual audit 38H. The books of account and financial statements of a national institute for higher education must be audited by the Auditor-General at the end of each financial year. Annual report 381. The board must within three months after the end of each financial year submit a report to the Minister which includes a financial statement on the performance of its functions during the preceding financial year.". Short title 4. This Act is called the Higher Education Amendment Act 2003. 

THE PRESIDENCY
 
 No. 1814
 15 December 2003

 It is hereby notified that the President has assented to the
following Act, which is hereby published for general information:-
 
 GENERAL EXPLANATORY NOTE:
 
 Words in bold type indicate omissions from existing enactments.
 
 Words in italics indicate insertions in existing enactments.
 
 NO. 38 OF 2003: HIGHER EDUCATION AMENDMENT ACT, 2003.
 
 (English text signed by the President.)
 (Assented to 10 December 2003.)
 
 
 ACT
 
 
 To amend the Higher Education Act, 1997, so as to provide for the
regular reporting by the Council on Higher Education on the state of
higher education; to provide for consequential changes arising out of the
incorporation of public higher education institutions in relation to
labour and student matters; to provide for the establishment of a
National Institute for Higher Education in Mpumalanga and a National
Institute for Higher Education in the Northern Cape to coordinate the
regional provision of higher education; and to provide for matters
connected therewith.
 
 BE IT ENACTED by the Parliament of the Republic of South Africa, as
follows:-
 
Amendment of section 5 of Act 101 of 1997
 
 1. Section 5 of the Higher Education Act, 1997 (hereinafter referred
to as "the principal Act"), is hereby amended by the substitution in
subsection (1) for paragraph (d) of the following paragraph-
 
 "(d) publish information regarding developments in higher education,
 including an annual report reports on the state of
 higher education, on a regular basis;".
 
Amendment of section 24 of Act 101 of 1997, as amended by section 6 of
Act 63 of 2002
 
 2. Section 24 of the principal Act is hereby amended by the
substitution for subsection (3) of the following subsection-
 
 "(3) Sections 22(2) to (6) and 23(2) to (2H), with the
 changes required by the context, apply to an incorporation referred
 to in subsection (1).".
 
Insertion of sections 38A, 38B, 38C, 38D, 38E, 38F, 38G, 38H and 38I in
Act 101 of 1997
 
 3. The following sections are hereby inserted in the principal Act
after section 38:
 
 "Establishment of national institute for higher education
 
 38A. (1) The Minister may establish a national institute for
 higher education as a juristic person in Mpumalanga and in the
 Northern Cape.
 
 (2) A national institute for higher education is managed,
 governed and administered by a board.
 
 Functions of national institute for higher education
 
 38B. The functions of a national institute for higher
 education are to-
 
 (a) coordinate the regional provision of higher education;
 
 (b) ensure the coherent provision of higher education through
 programme collaboration between public higher education
 institutions operating in the province in question;
 
 (c) advise the Minister on matters relating to the coordination of
 the provision of higher education in the region in question; and
 
 (d) perform any other duty which may be prescribed.
 
 Composition of board
 
 38C. (1) The board of a national institute for higher
 education consists of-
 
 (a) a chairperson; and
 
 (b) not more than 10 ordinary members.
 
 (2) The board may co-opt persons to the board for a period
 determined by the board.
 
 (3) The chairperson and members contemplated in subsection (1)
 are appointed by the Minister from nominations received in the manner
 prescribed for that national institute for higher education.
 
 Term of office of chairperson and members
 
 38D. The chairperson and an appointed member of the board hold
 office for a renewable period of four years.
 
 Vacation of office
 
 38E. A person ceases to be a member of the board if he or she-
 
 (a) resigns by giving written notice to the chairperson or, in the
 case of the chairperson, to the Minister;
 
 (b) is absent from three consecutive meetings of the board without
 the leave of the chairperson;
 
 (c) is declared insolvent, is removed from an office of trust by a
 court of law or is convicted of an offence involving dishonesty
 or an offence for which the sentence is imprisonment without the
 option of a fine; or
 
 (d) is declared unfit to attend to his or her personal affairs by a
 court of law.
 
 Filling of vacancies
 
 38F. (1) In the event of a vacancy occurring in the office,
 such vacancy is filled by the Minister in terms of section
 38C(3).
 
 (2) Any person appointed to fill a vacancy holds office for
 the unexpired portion of the vacating member's term.
 
 Funds of national institute for higher education
 
 38G. (1) The funds of a national institute for higher
 education consist of-
 
 (a) money appropriated by Parliament;
 
 (b) donations or contributions;
 
 (c) interest; and
 
 (d) any other income received.
 
 (2) The board-
 
 (a) must keep a record of all-
 
 (i) funds received and spent;
 
 (ii) assets and liabilities; and
 
 (iii) financial transactions;
 
 (b) must, in each financial year, submit to the Minister, at the time
 and in the manner which the Minister may determine, a statement
 of estimated income and expenditure for the ensuing financial
 year for the Minister's approval, granted with the concurrence of
 the Minister of Finance;
 
 (c) may in any financial year submit an adjusted statement of its
 estimated income and expenditure to the Minister for approval,
 granted with the concurrence of the Minister of Finance; and
 
 (d) may not incur any expenses which exceed the total amount approved
 in terms of paragraphs (b) and (c).
 
 (3) If the Minister does not approve of the board's statement of
 estimated income and expenditure or adjusted statement of estimated
 income and expenditure, it must submit a revised statement to him or
 her within a specified period.
 
 (4) (a) The money contemplated in subsection (1) must be used in
 accordance with the approved statement referred to in subsection (2).
 
 (b) Any balance not spent within the specified financial year
 must be carried over as a credit to the following financial year.
 
 (5) Subject to subsection (4), the board may invest any portion
 of its funds in such manner as the Minister, with the concurrence of
 the Minister of Finance, may approve.
 
 Annual audit
 
 38H. The books of account and financial statements of a
 national institute for higher education must be audited by the
 Auditor-General at the end of each financial year.
 
 Annual report
 
 38I. The board must, within three months after the end of each
 financial year, submit a report to the Minister which includes a
 financial statement on the performance of its functions during the
 preceding financial year.".
 
Short title
 
 4. This Act is called the Higher Education Amendment Act, 2003.