Nauru has Public Enterprises (PEs) that are governed by the Public Enterprises Act 2019 (PEA), though most also have their own Act. The PEA sets out a framework for governance and reporting. This includes the following:
- Obligations for Directors including requirements for a Code of Conduct. This has been included in a standardised Board Charter which also sets out good practice for board processes.
- A Statement of Corporate Intent (objectives, strategy, and targets) and Business Plan.
- Half-Year Report.
- Annual Report.
- Summary reports and monitoring.
The purpose of this Act is to provide for the regulation and governance of public enterprises according to public enterprise principles. Overall, the Act seeks to improve governance and accountability by standardizing the way the Government of Nauru manages its entities to maximise their efficiency. By standardising the method of oversight of PEs, Government intends for uniformity and consistency of approach, monitoring, direction, and philosophy of PEs.
It aims to help directors become more professional in their important role. It also requires more formal processes. The most important is for a strategic plan called a statement of corporate intent supported by a more detailed business plan. These become the basis for reporting back on what has been achieved compared with the plan. There is also provision for funding SOE’s if they are asked to provide non-commercial services called a community service obligation.
A link to the PE Act 2019 can be accessed here.
There are two categories of Public Enterprises (PE) in Nauru:
State Owned Enterprises (SOE’s) and Government Controlled Enterprise (CGE’s). SOE’s are commercial and GCE’s are non-profit but with a Board of Directors.
- State Owned Enterprises
The primary objective of a SOE is to be a successful business. It is to be at least as profitable and efficient as comparable businesses in the private sector. The SOE’s are:
- Cenpac Corporation
- Eigigu Holdings Corporation
- Nauru Airlines Corporation
- Nauru Maritime and Port Authority
- Naoero Postal Services Corporation
- Nauru Rehabilitation Corporationn
- Nauru Regional Processing Centre Corporation
- Nauru Utilities Corporation
- Government Controlled Enterprises
The primary objective of a GCE is to operate in an efficient and effective manner, achieving the objectives contained in their Act. The GCE’s are:
- Nauru Fibre Cable Corporation
- Nauru Fisheries and Marine Resources Authority
- Nauru Tourism Authority
The Department of Finance has established a PEMU unit within the Treasury Division with the prime responsibility of supporting the Ministers in implementing the Act. Its role is to provide financial, commercial and public enterprise policy analysis and advice to the Ministers responsible for the PE sector. This includes preparing an annual summary report on each PE that will be published online.
PEMU is required to prepare a report to joint ministers for each PE covering:
- A report on the performance of the PE (within 6 months after the end of each financial year). This report is tabled in Parliament and made available on the internet.
- A summary financial report on the performance of the PE (within 7 months after the end of each financial year) which includes:
- summary financial statements
- an assessment of the achievement of the public enterprise measured against appropriate financial and non-financial performance measures
- an assessment of whether the public enterprise has achieved its business goals.
- a statement determining whether the public enterprise has achieved its primary objectives.
Staffing – The PEMU unit is comprised of a Director and Treasury Analysts.
See our Organisation chart here.
The Government is progressively implementing the PE Act, with a view to improving the efficiency and effectiveness of all PEs. This is being supported with technical assistance funded by the Asian Development Bank. This support includes guideline documents, workshops, and direct support to individual PEs, especially on technical aspects such as financial planning and legal issues.
It is expected that there will be progressive improvement in the performance of PEs and in the publication of key document including annual reports with audited annual financial statements, Statements of Corporate Intent (strategic plans) and commentary on results.
To deliver the necessary capacity building and organisational strengthening of Public Enterprises a sustainable library of educational materials in the form of videos, templates and guidance notes are available. If you would like to receive copies of such materials please contact PEMU.