The seemingly endless honeymoon for parastatals is nearing the end, with government announcing several wide-ranging changes aimed attightening the grip of publicenterprises.
From now on, public enterprises will be compelled to submit business and financial plans to the portfolio Minister which will be tabled before the National Assembly, as per the new regulations adopted by Cabinet this week.
Parastatals have been operating at their own peril in recent years with many failing to submit annual reports in time, some even taking years before submitting audited annual reports despite the law prescribing them to do so.
The changes were part of a submission made by the Minister of Public Enterprises Leon Jooste.
“The submission of the business and financial plan needs to be done annually, 90 days before the commencement of its next financial year highlighting the most important aspects focus and findings of the previous year as well as an upcoming detailed analysis and a broad overview of the nature and range of the business,” information minister Tjekero Tweya announced yesterday during a media briefing on theoutcomes of Tuesday’s Cabinet meeting.
The motive as to why adjustment has been brought is because of the prominence of the business plan in the company and the fact that it need to serve as a guiding document for the PE boards of directors, Tweya said.
“The plan must include the corporate vision, mission statement, a code of ethics, and objective statement of accountability, broad expectations on financial and non-financial performances. The public enterprise boards of directors must also assure that the plan is aligned to the National Development Strategies, priorities and policies,” he outlined.
The financial, business plan and annual report consisting out of 100 maximum pages, is expected to enhance the public understanding of the nature and range of business and important for setting the direction of the public enterprises.
“Moreover, the content of the plan must be based on the principle of quality rather than quantity,” reads the statement.
In the statement, public enterprises are also instructed to produce annual reports with at least 80 pages which must be available on the respective websites.
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