THE MANDATE OF MINISTRY OF FINANCE

One of the mandates of the Ministry of Finance as enshrined in the public Finance Management Act of 2003 is the provision of financial oversight over statutory bodies and state owned enterprises. The PFMA places the ownership of statutory bodies in the Secretary to the Treasury including management of state assets or shares in statutory bodies as well as a systematic coordination mechanism for state investment and shareholding in statutory bodies.
In undertaking this mandate, the Secretary to the Treasury has designate the Public Enterprises and Government Investments Unit within the Public Finance Management Systems Division of the Ministry to among other things to provide custody of records of the direct and indirect financial holdings and non-current assets of the State; evaluate financial and non-financial performance

of a statutory body in line with other stakeholders; conduct due diligence and monitor the movements of shares and investments in statutory bodies; provide strategic financial guidance and direction on acquisition and disposal of capital assets and critical investments; formulate policies relating to financial sustainability of statutory bodies; provide financial guidance on the formulation of budgets and business plans in a statutory body in line with other stakeholders; and provide direction on financial reform strategies for statutory bodies in need of reform.

 With regard to database and movement of shares and assets in statutory bodies and State owned Enterprises, the Ministry also ensures that every statutory body has a database of shares in all investments which are supported by external or public resources; and that annually every statutory body annually reviews the movement of its shares and assets.

Similarly, on new acquisition investment, the Ministry also ensures that every new acquisition or investment by a statutory body is supported by a comprehensive financial and economic analysis of the potential opportunities.

This is done using various instruments including regulations, guidelines and policies.

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