Ghana Act or statute

Parliament of Ghana

Subvented Agencies Act, 2006 (Act 706)

The Minister responsible for public sector reform may classify subvented agencies into relevant categories by executive instrument published in the Gazette. A subvented agency means a public agenc…

agency classificationagency closureagency conversionagency governanceagency operationsagency reformboard appointmentcommercial classificationcorporate conversioncorporate formdefinitionsfinancinggovernment oversightgovernment policygovernment subventionperformance monitoringpublic administrationpublic agenciespublic agencypublic agency classificationpublic sector managementpublic sector reformregulationsseverance benefitsstaff redeploymentsubsidiary formationsubvented agenciessubvention

Jurisdiction: Ghana
Structure: 19 provisions
Citation: Act 706
Dates: Undated source snapshot

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“The Minister responsible for public sector reform may classify subvented agencies into relevant categories by executive instrument published in the Gazette.”

The Minister responsible for public sector reform may classify subvented agencies into relevant categories by executive instrument published in the Gazette. A subvented agency means a public agency that receives public funds. Public agencies are to be classified into four categories, initiated by the Minister and done in consultation with the Minister responsible for the agency and the Minister of Finance. This section says the purpose of classifying a subvented agency is to reduce reliance on public funds, limit government involvement where the private sector can do the work efficiently, and improve service, productivity, and accountability. A category I subvented agency is one that stops receiving subvention. A public agency that stops receiving subvention may be closed down or have its subvention withdrawn.

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Classification of subvented agency

The Minister responsible for public sector reform may classify subvented agencies into relevant categories by executive instrument published in the Gazette.

Section 1

Subvented agency closed down

A category I public agency being closed down must wind up its affairs within 24 months, and the responsible Minister may direct where assets and liabilities vest, redeploy staff, and take further closure steps.

Section 6

Responsibility of sector Minister for category II subvented agency

The Minister responsible for the subvented agency must carry out listed oversight and support duties for a wholly subvented agency.

Section 10

Category IV subvented agency

Category IV subvented agencies are fully commercial public agencies and must not receive subvention.

Section 15

Interpretation

This section defines key terms used in the Act.

Section 19

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Showing 19 of 19 provisions

Provision 16RepealAmendmentInterpretation

§ 1Classification of subvented agencyProvision

The Minister responsible for public sector reform may classify subvented agencies into relevant categories by executive instrument published in the Gazette.

Section 1—Classification of subvented agency (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.

Section 1Verify source

§ 2Meaning of subvented agencyProvision

A subvented agency means a public agency that receives public funds.

Section 2—Meaning of subvented agency A subvented agency is a public agency which receives public funds.

Section 2Verify source

§ 3Classification of public agenciesProvision

Public agencies are to be classified into four categories, initiated by the Minister and done in consultation with the Minister responsible for the agency and the Minister of Finance.

Section 3—Classification of public agencies 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.

Section 3Verify source

§ 4Purpose of classificationProvision

This section says the purpose of classifying a subvented agency is to reduce reliance on public funds, limit government involvement where the private sector can do the work efficiently, and improve service, productivity, and accountability.

Section 4—Purpose of classification 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. 3

Section 4Verify source

§ 5Category I subvented agencyProvision

A category I subvented agency is one that stops receiving subvention. A public agency that stops receiving subvention may be closed down or have its subvention withdrawn.

Section 5—Category I subvented agency (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.

Section 5Verify source

§ 6Subvented agency closed downRepeal

Section 6—Subvented agency closed down (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.

Section 6Verify source

§ 7Subvented agency where subvention withdrawnProvision

If a category I public agency has its subvention withdrawn, the 1993 Statutory Corporations (Conversion to Companies) Act applies.

Section 7—Subvented agency where subvention withdrawn Where a public agency is classified in category I and subvention is withdrawn, the provisions of the Statutory Corporations (Conversion to Companies) Act, 1993 (Act 461) shall apply.

Section 7Verify source

§ 8Category II subvented agencyProvision

A category II subvented agency is a public agency fully subvented by government.

Section 8—Category II subvented agency A category II subvented agency is a public agency for which full subvention is provided by government.

Section 8Verify source

§ 9Criteria for category II subvented agencyProvision

A public agency is classified as a category II subvented agency based on whether it performs a core government function.

Section 9—Criteria for category II subvented agency 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.

Section 9Verify source

§ 10Responsibility of sector Minister for category II subvented agencyProvision

The Minister responsible for the subvented agency must carry out listed oversight and support duties for a wholly subvented agency.

Section 10—Responsibility of sector Minister for category II subvented agency The Minister responsible for the subvented agency shall discharge the following duties in respect of a wholly subvented agency; 4 (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, (e) 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 of this section.

Section 10Verify source

§ 11Category III subvented agencyProvision

A category III subvented agency is a public agency with partial Government subvention that operates in the public interest and can perform a commercial function.

Section 11—Category III subvented agency A category III subvented agency is a public agency for which partial subvention is provided by the Government where the subvented agency operates in the public interest and has the capability to perform a commercial function.

Section 11Verify source

§ 12Operation of category III subvented agencyProvision

A category III subvented agency must continue operating under its responsible Ministry and answer to that Ministry’s Minister.

Section 12—Operation of category III subvented agency A category III subvented agency shall continue to operate under the Ministry responsible for it and be answerable to the Minister of that Ministry.

Section 12Verify source

§ 13Duties of the Minister responsible for category III subvented agencyProvision

The Minister must support and oversee a category III subvented agency’s commercial activities, subsidiary formation, financing arrangements, and performance monitoring.

Section 13—Duties of the Minister responsible for category III subvented agency 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 subsidiary 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 subvented agency.

Section 13Verify source

§ 14Conversion of category III subvented agencyProvision

The Commission must consider and start conversion action for a viable partially subvented agency, and the sector Minister must appoint a Board within three months if a statutory subvented agency has no governing body.

Section 14—Conversion of category III subvented agency (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 determines 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.

Section 14Verify source

§ 15Category IV subvented agencyAmendment

Category IV subvented agencies are fully commercial public agencies and must not receive subvention.

Section 15—Category IV subvented agency 5 (1) A category IV subvented agency is a public agency which is fully commercial. (2) A subvented agency in this category shall not receive subvention. (3) For purposes of this 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 subvented 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 (Act 461) and the provisions of that Act 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).

Section 15Verify source

§ 16Creation of subvented agencyProvision

A subvented agency is required to be a public corporation, unless it was set up as a commercial venture in category IV.

Section 16—Creation of subvented agency A subvented agency other than one set up as a commercial venture in category IV shall be a public corporation under article 192 of the Constitution.

Section 16Verify source

§ 17Ministerial directives on subvented agenciesProvision

The Minister is responsible for policy matters relating to reform of subvented agencies.

Section 17—Ministerial directives on subvented agency The Minister shall be responsible for matters of policy concerning the reform of subvented agencies.

Section 17Verify source

§ 18RegulationsProvision

The Minister may make Regulations by legislative instrument, after consulting the Commission and on the advice of the Minister for Finance.

Section 18—Regulations 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 subvented 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.

Section 18Verify source

§ 19InterpretationInterpretation

This section defines key terms used in the Act.

Section 19—Interpretation 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; 6 "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.

Section 19Verify source

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2 referenced instruments

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2 instruments

Schedule to the Statutory Corporation (Conversion to Companies) Act, 1993
Section 15
Statutory Corporations (Conversion to Companies) Act, 1993
Section 7

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