The Definition of Powers and Duties of the Public Enterprises Holding and Administration Agency Regulation No.445-2019

The Definition of Powers and Duties of the Public Enterprises Holding and Administration Agency Regulation No.445-2019

 

WHEREAS,  following  the  reorganization  of  the Federal  Government  Executive  organ  Public  Enterprises Holding and Administration  Agency has been  established in  accordance  with  Article  32  (15)  of  the  Definitions  of Powers and Duties of the Executive Organs of the Federal Democratic   Republic    of    Ethiopia    Proclamation    No. 1097/2018;

WHEREAS,  it  is  provided  by  the  proclamation that the Powers and duties of the Agency shall be defined by the regulation to be issued by the Council of Ministers;

NOW,  THEREFORE, in  accordance with  Article 5 and 32 (15) of the Definitions of Powers and Duties of the Executive organs of the Federal Democratic Republic of  Ethiopia  Proclamation  No.  1097/2019  the  Council  of Ministers has issued this Regulation.

 

GENERAL

  1. Short Title

This Regulation may be cited as “The Definition of Powers and Duties of the Public Enterprises Holding and Administration Agency Regulation No.445-2019″

  1. Definitions

In this Regulation, unless the context otherwise requires:

1/ “Public Enterprise” means an enterprise as defined under Article 2(1) of Public Enterprise Proclamation No. 25/1992, or a wholly state- owned share company, excluding those Enterprises for which specific Supervising Authorities are designated by other laws or the decisions of the Government;

2/ “Share Company” means a share company that have shares owned by the state, but excluding those share companies in which the state owns shares through Public Enterprises.

3/ “Board” means a board of management of Public Enterprise.

4/ “Agency” means Public Enterprises Holding and Administration Agency.

5/ “Holding” means Public Enterprises Accountable to Agency and shares owned by the state;

6/ “Ministry” and “Minister” means the Ministry and Minister of Finance respectively;

7/ “Person” means any Natural or Juridical person.

8/ Expressions in the masculine gender includes the Feminine.

 

 

  1. Head Office

The Agency shall have its head office in Addis Ababa and may have branch offices elsewhere, as may be necessary.

  1. Objectives of the Agency

 

 

The Agency shall have the following objectives ፡

1/    To  develop  modern  corporate  governance  and corporate   finance   system   that   make

Public Enterprises effective, competitive and profitable and assure its implementation;

2/    To supervise the governance and management of Public Enterprises;

3/     To  protect  the  ownership  rights  of  the  state  in Public   Enterprises   and   Share   Companies   by representing the state;

4/    Ensure  the  separation  of  regulatory  oversight, policy making and government   ownership functions over Public Enterprises; and

5/     To     foster      better     coordination     between government        development        policy        and performance of   Public Enterprises.

 

 

  1. Powers and Duties of the Agency

The  Agency  shall  have  the  following  powers  and duties፡

1/   Ensure  that  Public  Enterprises  have  developed strategic  and  annual  plans,  approve

such  plans, supervise,  and monitor  implementation  of  same and take corrective measures;

2/   Approve   audit   reports   of   Public   Enterprises, ensure  that  corrective  measures  are

taken  on audit findings;

3/    Develop    modern    corporate   governance   and financial  management  system   to  improve

the performance   and   competitiveness   of   Public Enterprises.

4/    Establish    a    system    to    ensure   that    Public Enterprises are managed by

individuals with the right      skills,      expertise,      experience      and qualification;

5/  Submit  recommendations  to  the  government  on potential new investment areas and  expansion

of existing  investments  and  implement  same  upon approval;

6/  Submit  recommendations  to  the  government  on dissolution,  amalgamation  or  division  of

Public Enterprises, and implement same upon approval;

 

7/   Submit   proposal   to   the   government   on   the privatization   of   Public   Enterprises

under   the auspices   of   the   Ministry   and   upon   approval, implement   the   same   in

accordance   with   the provisions  of  Proclamations  Number  146/1998 and 182/1999.

 

8/  Develop dividend policy, submit recommendation to   the   Ministry   on   the   amount   of

the   state dividends to be paid to the government by Public Enterprises  in  each  financial year,

and follow up the implementation of same;

9/  Provide advice to the Ministry on issues pertaining to   the   write   off   of   the

accounts   of   Public Enterprises  and  follow  up  the  implementation thereof;

 

10/   Develop   a   system   of   tracking   the   aggregate performance of Public Enterprises  as

a portfolio of investment;  submit  overall  performance  report  to the  Ministry  by  closely

monitoring  the  financial utilization,  acquisition  and repayment  of  loans by public

enterprises;

11/   Facilitate conditions under which Public Enterprises allocate    sufficient     budget    for

research     and innovation and disseminate findings of the research.

12/  Serve  as  a  central  depository  of  data  related  to Public       Enterprises;

provide       aggregate information of public enterprises.

 

13/   Without   prejudice   to  the   powers   and  duties assigned  to  the  board  under  Public

Enterprises proclamation  No.  25/1992,  shall  give  approval on   the   appointment   and

dismissal   of   chief executive officer of Public Enterprises.

 

14/   Enterprises   exchange   their   experiences,   and facilitate    training  programs  that

help  to  build their governance capacity;

 

15/   Finalize   pending  restitution   claims  regarding properties expropriated unlawfully in

accordance with  Proclamation  Number  572/2008  and  other relevant laws.

 

16/  The  Agency  shall  implement  the  powers  and duties given to a Supervising Authority of

Public Enterprises  by  Proclamation  No.  25/1992,With respect  to Public Enterprises  made

accountable to it;

17/  Carry  out   other  duties  that  are  necessary  to protect  the  ownership  interest  of

the  state  in Public Enterprises and share companies.

18/  Own  property,  conclude  contracts,  sue  and  be sued in its name

19/ Undertake such other activities that contribute to the achievement of its objectives.

 

 

  1. Enterprises accountable to the Agency

 

The Agency shall oversee Public Enterprises the list of  which  is  annexed  with  this  Regulation

provided that,  however,     the  government  may  as  necessary include or exclude   any Public

Enterprise to or from the  list  of  Public  Enterprises  that  the  Agency  shall oversee.

  1. Organization of the Agency

The Agency shall have:

1/ Director General and Deputy Director Generals  to be appointed by the Government; and

2/   The necessary staff .

 

 

  1. Powers and Duties of the Director General

1/  The Director General shall be the chief executive officer   of   the   Agency   and   shall,

direct   and administer the activities of the Agency.

2/   Without   prejudice   to   Sub-Article   (1)   of   this Article, the Director General shall:

 

  1. a) Exercise the   powers   and   duties   of   the Agency  specified  under  Article  5  of

this Regulation;

  1. b) Employ and  administers  employees  of  the Agency in accordance with the Federal Civil

Service laws;

  1. c) Prepare and submit to the Ministry the work program and  budget   of  the  Agency  and

implement same upon approval;

  1. d) Effect expenditure  in  accordance  with  the approved  budget  and  work  program  of

the Agency;

 

  1. e) Represent the  Agency  in  all  its  dealings with third parties;

 

  1. f) Submit to   the   Ministry  the   performance reports of the Agency.

3/  The  Director  General  may  delegate  part  of  his powers   and   duties   to   the   Deputy

Director Generals  and  other  employees  of  the  Agency  to the extent necessary for the

efficient performance of the activities of the Agency.

  1. Powers and    Duties   of    the   Deputy    Director General

1/    Assists    the    Director    General    by   planning, organizing, directing and

coordinating;

2/   Perform   other   duties   assigned   to  him   by  the Director General;

3/ Act on behalf of the Director General in his absence.

  1. Budget

The budget of the Agency shall be allocated by the Government.

  1. Books of Accounts

1/ The Agency shall keep complete and accurate books of accounts.

2/ The books of accounts and financial documents of the   Agency  shall   be   audited   annually

by  the Auditor  General  or  by  an  auditor  designated  by him.

  1. Inapplicable laws

No regulation, Directive or practice shall, in so far as it  is  inconsistent  with  this

regulation,  has  force  or effect  with  respect  to  matters  provided  for  in  this regulation.

  1. Effective Date

This Regulation shall enter in to force on the date of its publication in the Federal Negarit

Gazette;

 

 

 

Done at Addis Ababa, this Day of 3rd January, 2019 ABIY AHMED (DR.)

PRIME MINISTER OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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