What about the Public Finance Management Act of 1999 (PFMA)?

  • Sometimes underwriters will limit the definition of the Insured Person when underwriting public bodies and organs of state. (In some cases, only the CEO would be covered.) This extension would ensure that the Insured Persons include the accounting officer and the accounting authority.
  • If the accounting officer and the accounting authority are not employees, then their professional services would be excluded under this policy. This extension would restore that cover.

The following are examples of Public Bodies and Organs of State -

  • Organs of State specified in Schedule 1 of the PFMA include:
    • Parliament, national or provincial government departments, municipalities and provincial legislatures.
    • The Commission on Gender Equality
    • The Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities
    • The Financial and Fiscal Commission
    • The Human Rights Commission
    • The Independent Communications Authority of South Africa
    • The Independent Electoral Commission
    • The Municipal Demarcation Board
    • The Pan South African Language Board
    • The Public Protector
  • Public Bodies specified in Schedule 2 of the PFMA include Telkom SA Limited, SABC, ESKOM, SA Post Office Limited, Transnet Limited, the Airports Company of South Africa Limited, DENEL, Armscor, the Development Bank of Southern Africa and the IDC. Public bodies may also include any subsidiary or entity under the ownership control of these public bodies.
Subject: 
Directors and Officers Liability