SIGA begins 2023 Performance Contract Process for specified entities

The State Interests and Governance Authority (SIGA) has commenced the 2023 Performance Contract Processes with Specified Entities (SEs) this month.

The processes which include the Performance Contract Pre-Negotiation Meetings, the Performance Contract Negotiations, and the Performance Contract Signing Events are geared towards ensuring that SEs operate efficiently and profitably in the upcoming year.

This exercise is pursuant to the SIGA Act 2019 (Act 990), Section 4 (b) which ensures adherence to the terms and conditions of the annual performance contracts signed by SIGA with State-Owned Enterprises (SOEs) and other Specified Entities.

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 mandates SIGA to sign Performance Compact with Specified Entities and submit as part of Specified Entities’ financial plans for approval.

In addition to the setting of performance targets and key performance indicators (KPIs) for 2023, the performance of Specified Entities in this current fiscal year will be reviewed to ensure accountability and measurement of the attainment of set goals.

Priority will be placed on projects and initiatives that aim to increase productivity and efficiency, generate employment opportunities for the youth, create wealth, and contribute to the consolidated fund in dividend and surplus payments during the contracting process and projects and expenditures deemed not to be expedient in accordance with agreed indicators shall be declined.

An innovation that has been included in this year’s negotiations is the introduction of virtual pre-negotiation meetings with officers of both SIGA and each Specified Entity which is more cost-efficient and provides for more officers to engage and have a better understanding of set targets.

Additionally, a sector-based approach has been introduced where negotiations will be held with clusters of Specified Entities in accordance with their operations. Lastly, the signing of the Performance Contract Negotiations shall be held immediately after each cluster’s negotiations.