Proclamation No. 208 /2000
A PROCLAMATION TO PROVIDE FOR THE
ESTABLISHMENT OF THE BOARD OF
TRUSTEE FOR PUBLIC ENTERPRISES
WHEREAS, is has become necessary that the mandates of the Board of Trustee for Privatized Public Enterprises should include the taking over of residual assets and liabilities of public enterprises being converted into share companies and the liquidation of public enterprises upon their dissolution:
WHEREAS, it is necessary to establish the Board of Trustee anew so that its designation reflects the scope of its responsibilities and its powers and duties are redefined accordingly;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
- Short Title
- Head Office
- Powers and Duties
This Proclamation may be cited as the "Board of Trustee for Public Enterprises Establishment Proclamation No. 208 /2000."
In this Proclamation unless the context requires otherwise:
1/ "Enterprise" means a public enterprise privatized in accordance with Proclamation No. 87/1994 or Proclamation No. 146/1998 or converted into a share company or that dissolved in accordance with Proclamation No.25/1992 and includes a public enterprise restituted to its former owner in accordance with Proclamation No. 110/1995;
2/ "Agency" means the Ethiopian Privatization Agency;
3/ "Supervising Authority" means the Supervising Authority of Public Enterprises.
1/ The Board of Trustee for Public Enterprises (hereinafter "the Board of Trustee") is hereby established as an autonomous public agency having its own legal personality.
2/ The Board of Trustee shall be accountable to the Prime minister.
The Board of Trustee shall have its head office in Addis Ababa and may have branch offices elsewhere, as necessary.
The objectives of the board shall be to:
1/ collect receivables, takeover debts not transferred to the buyer, the share company or the former owner upon privatization, conversion or restitution of an enterprise; and follow up Court cases related to such enterprises.
2/ liquidate enterprises upon their dissolution.
The Board of Trustee shall have the powers and duties to:
1/ takeover documents relating to receivables and debts of an enterprise transferred to it in accordance with Proclamation No. 146/1998 and:
- reconcile receivable and payable accounts with the concerned third parties;
- collect receivables and take appropriate measures for their collection;
- submit debts to the Government to be settled;
- investigate receivables and debts that cannot be collected and settled and recommend their write off to the Government;
2/ notwithstanding the provisions of Sub-Article 1(c) of this Article, directly settle debts decided by the court or to which specific delegation has been given by government directives;
3/ dispose properties transferred to it in accordance with Proclamation No. 146/1998 and Sub-Article (7) of this Article, in accordance with directives of the Ministry of Finance on disposal of government properties;
4/ takeover and follow up court cases relating to assets and liabilities of an enterprise transferred to it; settle disputes out of court;
5/ Where the privatization modality applied by the Agency is an asset deal or where the restitution of an enterprise to its former owner is effected:
- ensure, upon commencement of handover, that all money deposited in the enterprise's bank account and cash on hand is transferred to and deposited in a special bank account opened for such purpose;
- reconcile the list of fixed assets, stock, raw materials and finished products transferred to the buyer or the former owner with records of the enterprise;
- cause the recording of transactions and the closing of accounts up to the date of handover and the auditing of same by external auditors;
6/ where an enterprise is dissolved in accordance with Article 39(1)-(5) of Proclamation No. 25/1992, perform the functions of liquidators as provided for in Articles 41-45 of the same Proclamation;
7/ take up, following handover effected by the supervising authority, the outstanding work of ad hoc board of trustees of disolved public enterprises listed in the schedule attached to this Proclamation;
8/ preserve those documents of an enterprise which are transferred to it for ten years from the date of winding up; allow interested persons to inspect the documents; dispose, through appropriate means, unused documents;
9/ where it finds it necessary, delegate the execution of specific tasks to appropriate institutions and employ the services of qualified consultants;
10/ own property, enter into contracts, sue and be sued in its own name;
11/ carry out other activities as are necessary for the attainment of its objectives.
- Organization of the Board of Trustee
- Members of the Board of Management
- Powers and Duties of the Board of Management
- Meetings of the Board of Management
- Powers and Duties of the General Manager
The Board of Trustee shall have:
1/ a Board of Management;
2/ a General Manager to be appointed by the Government; and
3/ The necessary staff.
Members of the Board of Management including the chairperson shall be designated by the Government, and their number shall be determined as may be necessary.
The Board of Management shall have the powers and duties to:
1/ oversee and supervise the activities of the Board of Trustee;
2/ review and ensure that debt settlement proposals and recommendations of write off cases of receivables and payables are based on proper investigations;
3/ ensure that the process of liquidation of dissolved enterprises is carried out in the manner prescribed by law;
4/ approve the organizational structure and work programs of the Board to Trustee as well as the annual budgets and reports to be submitted to the government;
5/ approve staff regulations of the Board of Trustee following the basic principles of the federal civil service laws; approve the employment and placement of officials of the Board of Trustee accountable to the General Manager;
6/ issue detailed disbursement rules applicable to authorized payments to be made out of the special Fund referred to in Article 13 of this Proclamation.
1/ The Board of Management shall meet once a month; provided, however, that it shall meet at any time at the request of the chairperson.
2/ There shall be a quorum where more than half of the members are present at a meeting of the Board of Management.
3/ Decisions of the Management Board shall be passed by majority votes and, in case of a tie, the chairperson shall have a casting vote.
4/ Without prejudice to the provisions of this Article, the Board of Management may draw up its own rules of procedure.
1/ The General Manager shall be the chief executive officer of the Board of Trustee and shall, subject to the General directives of the Board of Management, direct and administer the activities of the Board of Trustee
2/ Without prejudice to the generality stated in Sub-Article(1) of this Article, the General Manager shall:
- participate in the meetings of the Board of Management as a member;
- exercise the powers and duties of the Board of Trustee specified under Article 6 of this Proclamation;
- employ and administer employees of the Board of Trustee in accordance with the staff regulations approved by the Board of Management;
- prepare and ubmit to the Board of Management the budget and work program of the Board of Trustee; and implement same upon approval;
- effect expenditure in accordance with the approved work program and budget of the Board of Trustee;
- represent the Board of Trustee in all its dealings with third parties;
- prepare and submit to the Board of Management the operational and financial reports of the Board of Trustee.
3/ The General Manager may delegate part of his powers and duties to the officials and other employees of the Board of Trustee to the extent necessary for the efficient performance of the activities of the Board of Trustee; provided, hoever, that in the case of an official who acts on behalf of the General Manager for more that 30 days, prior approval of the Board of Management shall be required.
- Special Fund
The Budget of the Board of Trustee shall be allocated by the Government.
1/ Special Fund of the Board of Trustee is hereby established.
2/ The Fund shall have the following financial sources:
- deductions from the proceeds of privatization in percentages to be fixed by the Government;
- collections in accordance with Article 6(1) (b) of this Proclamation;
- proceeds from disposal of property in accordance with Article 6(3) of this Proclamation;
- money transfers and deposits in accordance with Article 6(5) (a) of this Proclamation;
- budgetary appropriations to be made by the Government as may be necessary.
3/ The fund shall be utilized for the disbursement of the following payments;
- settlement of debts in accordance with Sub-Articles 1© and (2) of Article 6 of this Proclamation;
- remunerations of consultants employed in accordance with Article 6(9) of this Proclamation;
- court charges and advocate fees related with cases handled by the Board of Trustee;
- costs related with liquidation activities to be carried out pursuant to Article 6(6) of this Proclamation.
4/ Disbursements made from the fund in accordance with Sub-Article 3(d) of this Article shall be refunded from proceeds of the sale of properties of the dissolved enterprise,
5/ Without prejudice to the provisions of Sub-Articles 1© and (2) of article 6 of this Proclamation, any disbursement from the fund shall require the approval of the Board of Management.
6/ The Fund shall have accounts separate from the budgetary accounts of the Board of Trustee; and separate reports shall be submitted thereon.
- Books of Accounts
- Duty to Cooperate
1/ The Board of Trustee shall keepcomplete and accurate bookds of accounts.
2/ The books of accounts and financial documents of the Board of Trustee shall be audited annually by the Auditor General or by an auditor designated by him.
1/ The board and the management of an enterprise shall have the duty to cooperate in providing detailed handover notes on financial and legal cases transferred to the Board of Trustee.
2/ The new owner or management of an enterprise shall have the duty to cooperate in:
- the preservation of documents and files to be transferred to the Board of Trustee in their original place and condition until the Board of Trustee takes over and removes them; and
- the collection, from staff debtors, of receivables transferred to the Board of Trustee.
- Transfer of Rights and Obligation
- Effective Date
The Board of Trustee for Privatized Public Enterprises Establishment Proclamation No. 17/1996 is hereby repealed.
The rights and obligations of the Board of Trustee for Privatized public Enterprises established under Proclamation No. 17/1996 are hereby transferred to the Board of Trustee.
This Proclamation shall enter into force as of the 27th day of June, 2000.
Done at Addis Ababa, this 27th days of June, 2000.
NEGASSO GIDADA (DR.)
PRESIDENT OF THE FEDERA
DEMOCRATIC REPUBLIC OF ETHIOPIA
AD HOC BOARD OF TRUSTEES FOR DISSOLVED
Name of Board of Trustee
Board of Trustee for Industrial Corporations
Board of Trustee for State Farms Corporation
Board of trustee for the Ethiopian Retail Trade Corporation and the Ethiopian House hold and Office Furniture Enterprise
Board of trustee for the National Hotels Corporation
Board of Trustee for the Ethiopian Pharmaceutical and Medical Supplies Corporation
Board of Trustee for Mining Corporation
Board of Trustee for Freight Transport Corporation
Board of Trustee for Passenger Transport Corporation