The opening ceremony will be presided over by South Africa’s former President, Nelson Mandela, who will formally launch the PAP Trust Fund.

Invited guests include heads of business, development partners (who have also been invited to a roundtable discussion on the Trust Fund), diplomats accredited to South Africa, and other foreign dignitaries.

Other events arranged by the Pan African Parliament include a NEPAD Day to be addressed by the Chief Executive Prof. Firmino Mucavele.

The official launch of the PAP Trust Fund follows its registration in May 2006 under the laws of South Africa, as the vehicle for the transparent procurement, management, and allocation of funds.

The PAP has identified and endorsed many key development and advancement initiatives that will benefit the continent as a whole. Many of these require substantial financial and professional resources that the PAP does not have at this stage of its development.

The creation of the Trust Fund will ensure that PAP becomes the engine to drive the economic, political, and social integration of the African people.

Two objectives have been identified :

To acquire and mobilise financial resources to meet the operational costs of the PAP and to finance PAP’s programmes and projects on the continent ;

To put in place a mechanism to procure resources (human, financial, and material) from business, bilateral and multi-lateral partners, international donor community and individuals.

The funds generated by the Trust will be channelled through recognised NGOs or will be directly employed by the Trust Fund on recommendation of the Trustees Board to deserving projects as enumerated in the Trust Deed. The fund has an operating manual which determines the manner and procedures for the use of its funds.

The Chairman of the Trust Fund explains :

In an interview the Chairman of the Trust Fund, Bwalya Chiti, a former Member of Parliament in Zambia and the Pan African Parliament, gave the following information :

What is the Pan African Parliament Trust Fund ?

The Trust Fund was registered in May 2006, under South African laws. There are three trustees, all drawn from the business sector : Dr. Manu Chandaria from Kenya who is an industrialist ; Dr. Mathews Phosa an entrepreneur from South Africa, as well as myself. Five more African business entrepreneurs will be selected to form a total of eight trustees who will be drawn from the other regions of Africa.

A structure to administer the fund, and the code of conduct for the trustees has already been approved to ensure that the tustees are honest and competent to undertake their duties.

Why was the Trust Fund established ?

It was set up first as a response to the inadequate budgetary allocation to the PAP from member states, and secondly the need to find a sustainable source of financing for the Parliament. As one of the organs of the African Union, the PAP receives funding from the member states through the AU. Currently, the work of the Parliament continues to be hampered by lack of funds. The Trust Fund would therefore be able to assist the Parliament in meeting some of its objectives including its ultimate goal to evolve into an institution with full legislative powers whose members are elected by adult universal suffrage.

How will the Trust Fund raise money ?

The Trust Fund will be able to raise money from various organisations, beginning with individuals, Africans themselves, the private sector, and development partners.

The Trust Fund is a public benefit organisation and is therefore tax exempt. Any taxpayer making a bona-fide donation in cash or in kind shall be entitled to a deduction from his taxable income, since such donation will be supported by an appropriate tax receipt issued by the Trust Fund.

The PAP is expected to continue to receive its budgetary allocation from the member states. However the fund has not been set up only to meet the needs of Parliament. There will be other beneficiaries in terms of the Trust Deed.

The mobilisation of adequate resources to meet the objectives aimed at the social-economic transformation of the continent is extremely crucial. Of greater importance will be the ability to facilitate a common platform for African peoples and their grassroots organisations to be more involved in discussions and decision-making processes on the challenges facing Africa.

How will you ensure accountability of the funds donated ?

Firstly, the Trust Fund is independent even from its founder, the PAP. Secondly it has developed a code of conduct of the trustees and management and staff, as well as an operating manual which will determine the manner and procedures of the procurement, management and allocation of the donations.

The Trust Fund will therefore be the vehicle for the transparent procurement, transparent management and transparent allocation of funds for the specific purposes as will be agreed.

There is a huge responsibility for the trustees to account for the funds. Under the South African law, the trustees are required to issue regular reports to the Master of the High Court, or as requested, to monitor the operations of the Trust Fund. The operating manual and code of conduct, which are public documents, will be circulated to potential donors and beneficiaries. All these efforts are aimed at ensuring that the handling of public funds is as transparent as possible.

Source : nepad news - october 27, 2006