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2000, Legislation

PROCLAMATION N0. 212/2000 ESTABLISHMENT OF THE NATIONAL DISASTER PREVENTION AND PREPAREDNESS FUND AND ITS ADMINISTRATION


PROCLAMATION N0. 212/2000

PROCLAMATION TO PROVIDE FOR THE ESTABLISHMENT

OF THE NATIONAL DISASTER PREVENTION AND PREPAREDNESS FUND AND ITS ADMINISTRATION

WHEREAS, it is found necessary to strengthen the existing capacities for quick disaster response;

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows.

  1. SHORT TITLE

This proclamation may be cited as the “National Disaster Prevention and Preparedness Fund Establishment Proclamation No. 212 /2000”.

  1. DEFINITIONS

In this proclamation:

1/ The word “Relief” and the phrase “Relief Program” shall have the definitions provided for in Article 2(1) and 2(2) of the Disaster Prevention and Preparedness Commission Establishment Proclamation No. 10/1995.

2/ “National Committee” means the National Disaster Prevention and Preparedness Committee specified in article 7(1) of Proclamation No.10/1995.

PART ONE

  1. ESTABLISHMENT OF FUND

1/ The National Disaster Prevention and Preparedness Fund (hereinafter referred to as “the Fund”) is hereby established by this proclamation.

2/ The Fund shall not be part of the Federal Consolidated Fund administered by the Ministry of Finance.

3/ The Federal Government shall be the owner of the Fund.

  1. OBJECTIVEs OF THE FUND

The objectives of the fund are:

1/ to maintain a readily available cash reserve to combat disasters which are likely to threaten the lives of people and livestock’s until such time as other resources can be mobilized locally or from abroad; and

2/ to assist the implementation of Employment Generation Schemes {EGS} that would support the achievement of the National Food Security.

  1. SOURCES OF THE FUND

The of the Fund shall be drawn from the following sources:

1/ Budget allocated by the Federal Government;

2/ Donation from local and foreign sources; and

3/ Any other sources.

  1. CRITERIA FOR ENTITLEMENT TO USE FROM THE FUND

In order to benefit from the Fund, at least one of the following conditions has to be met:

1/ When it is proved that there are emergency interventions with budget gaps and that the gaps need to be filled urgently;

2/ Emergence of fast – set disasters deserving priority of fund allocation;

3/ When it is recognized that projects which are certain to prevent disasters on regular basis are readily available;

4/ When it is proved that the applicant requesting for grant is committed to contribute matching resources and when it is proved that conducive situation/atmosphere for the proper use of the fund exists;

5/ The agency requesting the loan is able to submit a guarantee letter from a reliable donor committing itself to replace the fund in an unequivocal manner;

6/ When it is proved that the prevailing emergency situation warrants grants or loans.

PART TWO

THE FUND ADMINISTRATION

  1. ESTABLISHMENT

1/ The Fund Administration (hereinafter referred to as “the Administration”) is hereby established by this proclamation as an autonomous Federal Government organ.

2/ The Administration shall be accountable to the National Disaster Prevention and Preparedness Fund Management Board.

  1. HEAD OFFICE

The Head office of the Administration shall be in Addis Ababa.

  1. OBJECTIVE

The objective of the Administration shall be to build up the financial capabilities necessary for the realization of the objectives of the Fund and to administer and properly utilize the fund.

  1. POWERS AND DUTIES

The Administration shall have the following powers and duties:

1/ Administer the Fund;

2/ Ensure that the assets and financial resources of the Fund are properly maintained;

3/ Organize the fund in consultation with concerned bodies;

4/ Release money to agencies executing emergency programs either on loan or grant, upon authorization by the Board of Management or, if so delegated , by the Technical Committee, if the criterion provided for in Article 6 of this Proclamation if satisfied;

5/ Strengthen the fund by monetizing donations made in kind as per the directives of the government;

6/ Exert the necessary efforts to raise the financial capacity of the Fund;

7/ own property, enter into contracts, sue and be sued in its own name;

8/ Carry out such other activities necessary for the attainment of its objectives.

  1. ORGANIZATION OF THE FUND ADMINISTRATION

The Administration shall have:

1/ a Board of Management (hereinafter “the Board”);

2/ a Technical Committee;

3/ a General Manager to be appointed by the government upon recommendation of the Chairman of the Board; and

4/ the necessary staff.

  1. POWERS AND DUTIES OF THE NATIONAL COMMITTEE

The National Committee shall be responsible for the overall administration of the fund in accordance with the National Disaster Prevention and Preparedness Policy.

  1. THE MANAGEMENT BOARD

The Board, being accountable to the National Committee, shall have members to be appointed by the Government.

  1. POWERS AND DUTIES OF THE BOARD

The Board shall have the following powers and duties:

1/ to decide on policy matters related to the administration and utilization of the Fund;

2/ to establish a technical committee that shall enhance the development and proper administration of the Fund and its members shall be composed from relevant institutions.

3/ to investigate the proposals of the Technical Committee and take measures which may enhance the build-up of the Fund;

4/ to review recommendations of the Technical Committee and decide on the amount of the Fund to be released for the execution of assistance programs either on grant or loan basis, upon the occurrence of serious food shortage or during natural or man-made disasters;

5/ to conduct studies which facilitate the quick disbursement of funds for emergency situations and may delegate either the Technical Committee or the General Manager to release fund on loan or grant basis for the implementation of relief programs by fixing the maximum limit of authorization;

6/ to set or determine the type of guarantee for loans and the period of time for repayment;

7/ to establish measures that will have to be taken against defaulters of loan repayment;

8/ to plan strategies that may enhance the building up of the Fund and ensure its implementation.

  1. MEETINGS OF THE BOARD

1/ The Board shall have regular meetings at least once every month. It may also hold extraordinary meetings, whenever necessary.

2/ There shall be a quorum where more than half of the members of the Board are present at its meetings.

3/ Decisions of the Board shall be passed by majority vote of members present at its meeting; and in case of a tie, the chairman shall have a casting vote.

4/ Without prejudice to the other provisions of this Article, the Board may draw up its own rules of procedure.

  1. POWERS AND DUTIES OF THE TECHNICAL COMMITTEE

The Technical Committee, being accountable to the Board, shall have the following powers and duties:

1/ ensure that the Fund maintains sufficient financial resources to be disbursed on loan or grant;

2/ recommend to the Board regarding the maximum limit of the fund to be released on loan or grant to agencies undertaking relief programs by reviewing the financial status of the Fund;

3/ except when delegated by the Board to decide on the amount of fund to be disbursed, the Committee shall only investigate loan and grant requests and submit its recommendations to the Board;

4/ coordinate efforts of donor governments and other humanitarian organizations to maximize the level of the Fund;

5/ work with the Administration to facilitate the replenishment and further enhancement of the Fund;

6/ may establish an adhoc body which monitors performance of activities undertaken at the grass root level and report on the proper utilization of the money released to agencies on loan or grant basis;

7/ Provide technical advice to the Board and to the Administration.

  1. MEETINGS OF THE TECHNICAL COMMITTEE

1/ The Technical Committee shall have regular meetings once every month; and it may also hold extraordinary meetings, when necessary.

2/ There shall be a quorum where more than half of the members are present at its meetings.

3/ Decisions or recommendations shall be passed by a majority vote.

4/ In case of a tie, the decision or recommendation of the committee shall be submitted for the decision of the Board.

  1. POWERS AND DUTIES OF THE GENERAL MANAGER

1/ The General Manager shall be the chief executive of the Fund Administration and, subject to directives that may be given to him by the Board, he shall direct and administer the activities of the Administration.

2/ Without limiting the generality stated under Sub-Article (1) of this Article, the General Manager shall:

  1. Organize the Administration, administer employees in accordance with the federal civil service laws;
  2. Prepare internal regulations of the Administration and submit same to the Board for approval;
  3. Prepare the annual budget and work plan of the Administration prior to the Commencement of each budget year and submit same to the Board;
  4. Select officers of the Administration who are accountable to him and present them to the Board for placement;
  5. May accept donations in order to enhance the capacity of the Fund;
  6. As Per the maximum financial limits and directives issued by the Board, he may release loan or grant from the Fund;
  7. Report in writing to the Technical Committee the status of defaulters who have failed in repayment of loans;
  8. Submit the report of the Technical Committee to the Chairman of the Board.
  1. SOURCES OF BUDGET

Budget of the Fund shall be drawn from the following sources:

1/ Annual budget allocated by the Government; and

2/ Income from donations and other sources.

  1. BOOKS OF ACCOUNTS AND BUDGET YEAR

1/ The Administration shall keep accurate and complete books of accounts and supporting documents.

2/ The budget year of the Administration shall be from Hamle 1 to Sene 30, Ethiopian Calendar.

  1. AUDIT AND INSPECTION

1/ Books of accounts and financial documents of the Administration shall be audited annually by the Auditor General or by an audit firm appointed by it.

2/ The audit report shall be presented to the Board within six months from the end of the budget year.

3/ Donors may inspect the execution of projects financed by an individual donor or donations made jointly.

PART III

MISCELLANEOUS PROVISIONS

  1. RELATIONS WITH OTHER LAWS

Provisions of laws which contradict this proclamation shall not be applicable.

  1. EFFECTIVE DATE

This proclamation shall enter into force as of the 4th day of July,2000.

Done at Addis Ababa this 4th day of July, 2000.

NEGASO GIDADA (DR.)

PRESIDENT OF THE FEDERALDEMOCRATIC

REPUBLIC OF ETHIOPIA

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About Abrham Yohannes

Abrham Yohannes Hailu Licensed Lawyer & Consultant

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