Implementation of Subvented Agencies Law in January

Accra, Nov. 20, GNA - The Ministry of Public Sector Reforms said on Monday that it would in January 2007 begin in earnest to implement the Subvented Agencies (SAs) Law, which seeks to wholly or partially commercialize or even close down some State institutions on Government support.

Speaking at a forum called to inform stakeholders about the practical consequences and implications of the Law, Dr Paa Kwesi Nduom, Minister of Public Sector Reform, said the Ministry would go all out to ensure the success of the programme because it now had the full backing of the Law.

Under the Law, the Government would classify the institutions into four categories. These are those to be closed down, those for whom Government would discontinue the provision of subvention, those that would benefit from partial subvention and those that are to be fully commercialised.

Dr Nduom said the move had become necessary to re-orientate the public services to a result-oriented one and also to reduce the financial burden on the Government while resources were made available to other sectors.

He said similar programmes initiated in the past had failed because of the long gap between diagnostic reviews/reengineering plans and implementation of p roposed action plans, leading to delays and loss of reform momentum.

To ensure the success of the programme, Dr Nduom said there was the need for the SAs to become reform driven by initiating and sustaining interest while the Boards, Management and staff of the institutions must determine their commitment and capacity to implement reforms. Dr Nduom said to ensure that benefits gained from the reform were not dissipated by the uncontrolled and uncoordinated establishment of the SAs, Parliamentary approval would be needed to create new subvented agencies.

He said the relationship between the ministries and subvented agencies needed to be streamlined to ensure a clear process of performance reporting, guarantee accountability and value for money. Similarly, an agency that will be removed and set up separately from the Civil Service shall be required to enter into performance contracts made between the Chief Executive of the Agency and the Ministry under which it operated.

Professor Stephen Adei, Director of Ghana Institute of Management and Public Administration (GIMPA); said the Government's support was key to the success of the reform at every stage of the process. He said it was important not to start reforms in any institution unless it received the full commitment of the leadership and asked that the role of external consultants be limited in the process as much as possible.