13 December 2011

Policy Objectives

According to Section 2 of the PERD Act, the main objective of this Act is to give effect to the Government Policy and Action Plan for Public Enterprise Reform and Divestiture. Specifically, the following objectives shall be deemed to fall under the objective specified above:

a)      The reduction of Government equity holding in the public enterprises and thereby, inter alia, relieving the Government of the financial drain on its resources and the burden of their administration and raising revenue by means of divestiture, including, where necessary, liquidation or dissolution of public enterprises and by the promotion, development and strengthening of the private sector;

b)      The promotion of institutional arrangements, policies and procedures for:

  • Ensuring the efficient and successful management, financial accounting and budgetary discipline of public enterprises;
  • Ensuring the separation of ownership and management functions;
  • Enabling the Government to play its proper role more effectively as owner of public enterprises; and
  • Enforcing accountability;

c)       The rehabilitation and restructuring where appropriate, of public enterprises; and

d)       The promotion of local entrepreneurship.