The State Interests and Governance Authority (SIGA) in November commenced the 2023 Performance Contract Processes with Specified Entities (SEs).
A statement issued for and on behalf of SIGA by the Corporate Affairs Division said the processes, which included the Performance Contract Pre-Negotiation Meetings, the Performance Contract Negotiations, and the Performance Contract Signing Events, were geared towards ensuring that SEs operated efficiently and profitably in the upcoming year.
It said the exercise was in pursuant to the SIGA Act 2019 (Act 990), Section 4 (b), which ensured adherence to the terms and conditions of the annual performance contracts signed by SIGA with State-Owned Enterprises (SOEs) and other Specified Entities.
The statement said the Public Financial Management Regulations 2019 (L.I. 2378), Regulations 194 and 195 (Submission and Approval of Financial Plans) and Regulations 196 (Performance Compact) also mandated SIGA to sign Performance Compact with Specified Entities and submit as part of Specified Entities financial plans for approval.
It said in addition to setting of performance targets and Key Performance Indicators (KPIs) for 2023, the performance of Specified Entities in the current fiscal year would be reviewed to ensure accountability and measurement of the attainment of set goals.
The statement said priority would be placed on projects and initiatives that aimed to increase productivity and efficiency, generate employment opportunities for the youth, create wealth and contribute to the consolidated fund in dividend.
It said surplus payments during the contracting process and projects and expenditures deemed not to be expedient in accordance with agreed indicators shall be declined.
The statement said an innovation, which had been included in this year’s negotiations was the introduction of virtual pre-negotiation meetings with officers of both SIGA and each Specified Entity, which was more cost efficient and provided for more officers to engage and have a better understanding of set targets.
It said additionally, a sector-based approach had been introduced where negotiations would be held with clusters of Specified Entities in accordance with their operations.
The statement said the signing of the Performance Contract Negotiations shall be held immediately after each cluster’s negotiations.