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.
- 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″
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.
- Head Office
The Agency shall have its head office in Addis Ababa and may have branch offices elsewhere, as may be necessary.
- 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.
- 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.
6. 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.
- 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 .
- 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:
- Exercise the powers and duties of the Agency specified under Article 5 of this Regulation;
- Employ and administers employees of the Agency in accordance with the Federal Civil Service laws;
- Prepare and submit to the Ministry the work program and budget of the Agency and implement same upon approval;
- Effect expenditure in accordance with the approved budget and work program of the Agency;
- Represent the Agency in all its dealings with third parties;
- 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.
- 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.
The budget of the Agency shall be allocated by the Government.
- 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.
- 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.
- 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