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T he Private Sector Organisation of Jamaica (PSOJ) in collaboration with the Ministry of Finance and the Public Service (MFPS) has established the annual Public Sector Corporate Governance Awards for public bodies.

These awards will be applicable to those Public Bodies which are governed by the Public Bodies Management and Accountability Act (PBMAA) and the Corporate Governance Framework for Public Bodies (CGF).

Award Objectives  To promote awareness and adherence to the principles of

good corporate governance  To encourage improvements in the standard of corporate

governance disclosure  To recognize Public Bodies that have established high

standards of corporate governance disclosures and practices

A. Eligibility for Entry All Public Bodies governed by the (PBMAA), namely:  Statutory Bodies or Authorities (with body corporate status)  Government Owned Companies

B. Award Evaluation The Event will cover three (3) special awards and four (4) category awards; the latter will determine the overall winner. A questionnaire has been developed in order to elicit responses in relation to the categories. The completed questionnaire will be evaluated by the judging panel using the evaluation scheme which is based on the assignment of 100 points, as allocated among the 4 categories as noted below:


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Ministry of Finance and the Public Service Fiscal Policy Paper 2021 Part 1 | Page 108

Figure VII (m): Estimated Financing Gaps for Emergency Losses

Source: WBG & MOFPS Notes: High severity – Category 5 hurricane and a major earthquake; Medium severity – Category 3 hurricane; Low severity – Category 1 hurricane. *CCRIF payments are estimated and may differ from actual events. National Natural Disaster Risk Financing Policy Committed to ensuring that there are sufficient mechanisms available for disaster relief, recovery and reconstruction without significant recourse to the national budget, the GOJ is crafting a national policy to guide disaster risk financing. The draft policy, which is slated to be tabled in Parliament within the first half of FY 2021/22, proposes a risk-layered approach to disaster risk financing and also places focus on the need for an up to date GOJ asset register to facilitate the insurance of public assets, as well as the importance of private insurance to limit the implicit liability of the Government in the event of debilitating private losses. Public Bodies The operations of public bodies pose a risk to the Central Government budget to the extent that these entities are unable to service debt, whether government guaranteed or otherwise, cover their operating expenses or satisfy their investment needs. Subject to the Public Bodies Management and Accountability (PBMA) Act, public bodies may only access loans with the approval of the GOJ. At the same time the Public Debt Management Act (PDMA) legislates that government guaranteed loans (GGLs) should be no more than 8.0%, 5.0% and 3.0% of GDP at end-FY 2016/17, FY 2021/22 and FY 2026/27, respectively. As at end-December 2020, GGLs-to-GDP was recorded at 4.7%, 0.3 percentage point below the 5.0% limit set for FY 2021/22. While the nominal value of GGLs has been decreasing, shocks to GDP growth could compromise the achievement of these targets. Additionally, given the severe economic impact of the COVID-19 pandemic, public bodies may be required to seek guarantees in order to borrow. The GOJ



-$243.2 -400







High Medium Low

Contingencies Fund & NDF CCRIF-SPC*

IDB Contingent Credit Financing Gap

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AUDIT GENERAL’S DEPARTMENT 1.0 BACKGROUND The responsibilities and authority of the Auditor General are detailed in the Constitution and the Financial Administration and Audit Act. The Auditor General and the employees of the Auditor General’s Department (AuGD) are tasked with conducting independent audits in accordance with acceptable, professional and ethical standards and issue appropriate reports on the use of public resources. The role and functions of the Auditor General are defined in the following legislations and regulatory framework:

 The Jamaican (Constitution) Order in Council (Act), July 23, 1962  Public Bodies Management and Accountability Act, 2001  Financial Administration Audit Fiscal Responsibility Framework Amendment

Regulations 2015  Financial Administration and Audit Act, 2011  The Executive Agencies Act

Audit of Appropriation Accounts and Financial Statements

The Auditor General is mandated by Section 122 of the Jamaican Constitution to audit the accounts of all government bodies. Section 25 of the Financial Administration and Audit (FAA) Act expounds on the specific responsibilities of the Auditor General. This legal mandate sees the Auditor Generals Department (AuGD) conducting financial statement audits of 43 of the 251 entities, 83 Appropriation Accounts of Ministries, Departments+and+%0AAgencies">Departments and Agencies, 14 Municipal Authorities, 14 Internationally Funded Projects and 11 Statements for the Accountant General’s Department.

However, the fulfilment of this task is hampered by the delays faced by executives in preparing financial statements for audit resulting in a serious backlog, as many entities have not submitted accounts for several years. Consequently, Parliament is not provided with actual and recent information on the financial performance of the Executive. Further, because the audits relate to accounts of several years ago, the relevance of these audits are undermined. A significant part of the audit capacity of the AuGD is allocated for this effort.

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Our government believes in holding our public enterprises accountable for achieving

commercial returns on the $1.1 trillion of assets they collectively own. We support

mechanism for long-term improvements in productivity of state assets. These

mechanisms include full privatization, partial privatization through public listing on the

local stock exchange, joint ventures, or public private partnerships (PPP) a leading tool

for realization of infrastructure projects worldwide. One of the analysis that we plan to do

is properly cost and over-time properly fund the subsidized activities such as social

water, urban transportation, also known as Community Service Obligations (CSOs) that

central government imposed on the public bodies. We also will act to correct the

deficiencies in the Public Bodies Management and Accountability Act 2001 as the study

noted. The notable ones are:

1) There is no primary objective that requires the SOEs to operate commercially

2) There are no provisions dealing with Community Service Obligations

3) There is no statement establishing the role of directors and how and for what they

are held to account.

Mr. Speaker, the World Bank study said that when public bodies contribution to GDP is

much smaller than the portion of fixed assets that they use in the economy, this

inefficiency acts as a drag on economic growth. The resolve, as was publicly stated, is to

address this through accelerated program of commercialization, restructuring and full or

partial privatization. We favor stock exchange listing as this will generate revenues for

the people of Jamaica but more importantly, listing introduces disclosure and governance


June 12, 2021