FOURTH REPUBLIC
Act 706
Subvented
Agencies Act, 2006
ARRANGEMENT OF
SECTIONS
Section
1)
Classification of sub vented agency
2)
Meaning of
subvented agency
3)
Classification of public agencies
4)
Purpose of
classification
5)
Category I
subvented agency
6)
Subvented
agency closed down
7)
Subvented
agency where subvention withdrawn
8)
Category II
sub vented agency
9)
Criteria for
category II subvented agency
10)
Responsibility of sector Minister for category II
sub vented agency
11)
Category III
subvented agency
12)
Operation of
category III sub vented agency
13)
Duties of
the Minister responsible for category III subvented
agency
14)
Conversion
of category III subvented agency
15)
Category IV
sub vented agency
16)
Creation of
subvented agency
17)
Ministerial
directives on subvented agencies
18)
Regulations
19)
Interpretation
THE SEVEN HUNDRED AND SIXTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
THE SUBVENTED AGENCIES ACT, 2006
AN ACT to, provide
for the reform of subvented agencies and for related
matters.
DATE OF ASSENT:
6th April, 2006.
ENACTED by the
President and Parliament:
Classification
of subvented agency
1. (1) The Minister
responsible for public sector reform may by
executive instrument published in the Gazette
classify subvented agencies into relevant categories
for purposes of reform.
(2) On the date of
publication of the executive instrument in the
Gazette, the provisions of this Act shall apply.
Meaning of
subvented agency
2.
A subvented agency
is a public agency which receives public funds.
Classification
of
public agencies
3.
Public agencies
shall be classified into four categories on the
initiative of
the Minister in
consultation with the Minister responsible for the
agency concerned and the Minister of Finance.
Purpose of
classification
4.
The purpose of
classification of a subvented agency is to;
(a)
reduce the
dependence on public funds by a public agency,
(b)
minimise the role
of the Government in activities which can be
efficiently undertaken by the private sector, and
(c) enhance service
orientation, delivery, productivity and
accountability in the public interest.
Category I
subvented agency
5.
(1) A category I
subvented agency is an agency which ceases to
receive subvention ..
(2) A public agency
which ceases to receive subvention may
(a)
be closed down, or
(b)
have the subvention
withdrawn.
Subvented agency
closed down
6.
(1) Where a public
agency is classified in category I and is to be
closed down, (a) the public agency shall wind
up its affairs within twenty-four months after the
date of publication in the Gazette under
section 1,
(b)
the assets, rights,
obligations and liabilities of the public agency
shall vest in the public agency that the Minister
responsible for the public agency may direct on the
recommendation of the Minister in consultation with
the Minister for Finance,
(c) the Minister
responsible for the public agency may re-deploy
staff to other agencies that the agency under
paragraph (b) shall advise, and (d)
the payment of severance awards and other employment
benefits shall be secured by the agency specified.
in paragraph (b).
(2) The
Minister
responsible for the public agency shall take any
further action considered necessary for the
effective closure of the public agency in
consultation with the Minister and the Commission.
(3) Where the
processes under this section have been completed,
the enactment which established the public agency
shall be deemed to be repealed or revoked twenty-
four months after the date of publication in the
Gazette ..
Subvented agency
where
subvention withdrawn
7. Where a public
agency is classified in category I and subvention.
is withdrawn, the provisions 0 f the Statutory
Corporations (Conversion to Companies) Act, 1993
(Act 461) shall apply.
Category II
subvented agency
8.
A category 11
subvented agency is a public agency for which full
subvention is provided by government.
Criteria for
category II subvented agency
9. The criteria for
classification of a category II subvented agency
shall be whether or not the public agency performs a
core function of the government.
Responsibility
of sector Minister for category II subvented agency
10.
The Minister
responsible for the subvented agency shall discharge
the following duties in respect of a wholly sub
vented agency;
(a)
monitor and
evaluate the performance of the subvented agency to
ensure the pursuit of government policy objectives
and priorities,
(b)
ensure the
establishment of an internal audit unit, corporate
planning and management information systems by the
subvented agency,
(c)
ensure that the
subvented agency institutes and implements
technical, operational, managerial and professional
training for staff members, (d) provide
guidelines to the subvented agency for the
submission of quarterly and annual performance
reports to the Minister,
(c)
provide guidelines
and the format for the preparation of performance
agreements for public officers where applicable, and
(f)
any other duty that
is incidental to the provision ofthis section.
Category III
subvented agency
11.
A category ill
subvented agency is a public agency for which
pa11ial subvention is provided by the Government
where the sub vented agency operates in the public
interest and has the capability to perform a
commercial function.
Operation of
category III subvented agency
12 ..
A category ill subvented agency shall continue to
operate under the Ministry responsible for it and be
answerable to the Minister of that Ministry.
Duties
of the
Minister responsible for category III subvented
agency 13. The Minister shall,
(a)
on the advice of
the Commission, make proposals to the governing
board for the operation of the agency's commercial
activities;
(b)
provide assistance
to, the subvented agency for the establishment and
registration of a subsidi&y company,
(c)
assist the
subvented agency with arrangements for loans and
other credit facilities to perform its commercial
function, and
(d)
monitor and
evaluate the performance of the sub vented agency.
Conversion of
category III subvented agency
14.
(1) In respect of a
partially subvented agency, the Commission shall
examine and initiate action for the conversion of a
category III subvented agency into a fully
commercial entity where the Commission detem1ines
this to be viable.
(2) Where the
statutory subvented agency does not at any time have
a governing body, the sector Minister shall, within
three months appoint a Board to be the governing
body.
(3) Until a Board
is appointed under subsection (2) the functions of
the governing body shall be performed by the sector
Minister.
'Category
IV subvented agency
15.
(1) A category N
subvented agency is a public agency which is
fully commercial.
(2) A subvented
agency in this category shall not receive
subvention.
(3) For purposes
ofthis section, a subvented agency which produces
goods, provides services or is required to produce
goods or provide services on commercial basis with
the potential to generate income on a
self-sustaining basis shall be classified in this
category.
(4) Sub-section (2)
shall apply whether the sub vented agency was
established as a commercial entity by its enabling
law or not.
(5) Where a
subvented agency in this category is a statutory
corporation to be converted to a company limited by
shares under the Companies Code, 1963 (Act 179), the
Minister in consultation with the Commission shall
recommend to the Minister for Finance the amendment
of the Schedule to the Statutory Corporation
(Conversion to Companies) Act, 1993 (Act461) and the
provisions ofthatAct shall apply.
(6) Where the
subvented agency in category IV is not a statutory
corporation, the provisions of the Statutory
Corporation (Conversion to Companies) Act, 1993 (Act
461) shall apply with the modifications required to
convert the subvented agency into a company under
the Companies Code, 1963 (Act 179).
Creation of
subvented agency
16.
A subvented agency
other than one set up as a commercial venture in
category N shall be a public corporation
under article 192 ofthe Constitution.
Ministerial
directives on subvented agency
17.
The Minister shall
be responsible for matters of policy concerning the
reform of subvented agencies.
Regulations
18.
The Minister may,
in consultation with the Commission and on the
advice of the Minister for Finance, by legislative
instrument, make Regulations,
(a)
to change the
criteria for the classification of public agencies;
(b)
to change the
categories of sub vented agencies;
(c) on the
procedure and consultative process for the
classification of public agencies; and
(d)
generally to give
effect to the provisions of this Act.
Interpretation
19.
In this Act, unless
the context otherwise requires:
"agency" includes
institution;
"commercial
function" means an activity concerned with the sale,
purchase, distribution of goods and services of any
kind;
"criteria" means
conditions for consideration in the classification
of a subvented agency;
"Commission" means
the State Enterprises Commission;
"core function"
means the executive, judicial, legislative,
regulatory, management, monitoring or policy
formulation of the government; "Government" means
any authority by which the executive authority of
the Republic is duly exercised;
"Minister" means
Minister responsible for Public Sector Reform;
"private sector" means an institution which is not
maintained either wholly or in part from Central or
Local Government Funds;
"public agency"
means a body set-up by the Government in the public
interest with or without an Act of Parliament;
"public interest"
includes a right or advantage which enures or is
intended to enure to the general benefit of the
people of this country; and "subvention" means
public funds.
Date of Gazette
notification: 7th April, 2006.
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