Budgets for six public enterprises approved   The National Assembly yesterday considered and approved the 2022 budget allocations for six public enterprises.   |10 December 2021

Public Enterprise Monitoring Commission (PEMC)

Thirty voted to approve the R8,969,000 allocation to the Public Enterprise Monitoring Commission (PEMC), in comparison to R7,628,000 in the revised budget for 2021. As explained by Minister for Finance, Economic Planning and Trade Naadir Hassan, the difference covers R541,000 in salaries, and R800,000 in goods and services.

The PEMC monitors public enterprises in a variety of sectors including services and development, energy, transport and financial services as per the PEMC Act (2013). To address the difficulties PEMC faces in terms of resources, government has decided that institutions who report to the Central Bank of Seychelles (CBS) are not obligated to report to PEMC. This will allow PEMC to concentrate its resources on other entities. Furthermore, to render the work of the PEMC more effective, government will soon table a new legislation which will establish new obligations for public enterprises and will assist the commission to be more efficient and rigorous in its supervisory function.

PEMC chief executive Georges Tirant during yesterday’s sitting informed members that the commission plans on conducting an audit on the Islands Development Company (IDC), and have thus had to account for transportation and accommodation, as well as an increase in rent with the end of the discount period offered by landlords.

Hon. Terrence Mondon expressed concern over the 2022 report produced by PEMC which indicates that only 17 of the 22 public enterprises reporting to the commission submitted required budget projections to the commission. According to him, Nouvobanq and the Seychelles Ports Authority are among the five entities who failed to meet the requirements.

Seychelles Licensing Authority

The Seychelles Licensing Authority (SLA) is to benefit from a budget appropriation of R17,062,000 to cover its expenses over 2022, representing a R900,000 increase from the 2021 revised budget of R16,159,000.

The license-issuer’s expenses have reduced on most budget lines as per the Appropriation Bill 2022, except for additional expenses including; salaries for staff previously on the payroll of the finance ministry, software and equipment and new technological additions, rent provisions with the end of the rent concession over 2021, and expenses towards digitalisation.

Over 2022, SLA is to engage in an intensive review of its laws and regulations in partnership with other partners. The review will cover licensable activities, legal provisions, and the reinforcement of provisions with regard to offences and applicable penalties.

The authority is also expected to better deliver a service to all users, with the establishment of its online platform to facilitate submission of applications and license payments online. Phase one of the project is complete while the second phase applying to transport licenses is expected to be online by the end of the year.

It must be noted that the SLA has observed a steady but continuous increase in revenue over the years, although there was a slight decrease in 2020 as many businesses failed to pay.

Minister Hassan however remarked that requests for business related to licenses are picking up.

The authority’s budget was approved by 31 votes in favour.

National Tender Board (NTB)

The National Tender Board (NTB), a body created under the Public Procurement Act (2008) is an approval’s authority which considers recommendations for procurements exceeding R750,000. For the year 2022, the authority has received an appropriation of R3,903,000, approved by 30 votes.

The NTB is to be directed by a new board, whose appointments took effect in November 2021.

“The budget allocation for the tender board for the year 2021 is R3,900,000 in total, an increase of around R200,000 as compared to the 2021 revised budget. The major increases are in other goods and services, to cover office rent which is to increase as from January 2022. Other provisions remain almost the same as 2021, inclusive of R50,000 to cover digitalisation projects in submission and the opening of tenders,” Minister Hassan stated.

With regard to R1,100,000 in rental fees, chief executive Marie-Nella Fred clarified that rent fees are to increase as from January 2022.

Members were particularly concerned with the inconsistencies in the tender process, the issues faced by the body, and how it intends to move forward while addressing the problems. Minister Hassan informed assembly members that the primary challenges are deficiencies in the preparation of tender documents.

National Bureau of Statistics (NBS)

As per the 2022 appropriation, the National Bureau of Statistics (NBS) is to have R20,123,000, a reduction of R3,940,000 as compared to last year’s revised appropriation. The entity’s budget was approved by 30 votes.

The appropriation accounts for an increment of R409,000 in salaries and wages, on account of R255,000 for a new statistician post for the year under the new spending proposal and salary expenses, considering a salary cut during this year.

In the budget for goods and services, there is a reduction of R4,350,000 for 2022, attributed to a significant decrease in the budget allocated for the housing and population census. The exercise was to be carried out this year but remains delayed due to the pandemic, although part of the budget has been spent on a pilot project within the Anse Aux Pins district. Expenses included necessary equipment, publicity, training and logistics.

Next year’s budget also features an increase in office expenses of R391,000 and in transportation and travel by R30,000. There are to be no changes in allocations for maintenance and repairs, and the materials and supplies budget lines, while there has been a reduction of R4,600,000 in other use of goods and services, and of R165,000 in minor capital outlays.

Chief executive Laura Ah-Time noted that the entity is user-driven and will therefore be collecting more information gradually to satisfy both local and international demands for statistics. Instead of one law applying exclusively to the NBS, she proposed having legislation which encompasses all sectors within the national statistical system with NBS as head of the system, to strengthen the links between ministries, departments and agencies.

The organisation employs one senior statistician, a principal, and seven statisticians, with assistant statisticians. She also noted that the organisation requires expertise in GIS systems and other latest developments.  

Seychelles Revenue Commission (SRC)

The assembly tackled and voted unanimously to approve the appropriation for the Seychelles Revenue Commission (SRC) to a sum of R231,613,000.

Minister Hassan explained that 51.94 percent of the budget is to cover salary expenses, and 25.71 percent, to a sum of R59 million, is to cover capital expenses. This covers interest costs for a loan by the Green Island Construction Company (GICC) for the construction of a building facility for SRC. The interest provisions are at R5,000,000, and the budget also includes R54,000,000 for an invoice management system for the Value-Added Tax (VAT) for the retail sector.

The budget also makes provisions for R3,300,000 for electronic platforms and systems to manage information and pay the necessary licences for the implementation of the systems. The goods and services budget line has a R7,600,000 allocation for four international consultants, two with expertise in taxation and two with expertise in customs to train locals and review legislation.

The commission’s budget represents an increment of over R90,000,000 as compared to the 2021 budget appropriation.

SRC as the entity mandated to collect tax revenues expects to collect in 2022 a sum of R7.51 billion. Collection in 2021 amounted to R5.6 billion, indicative of progress made towards the R6.3 billion projection by the end of the year, Minister Hassan remarked.

The authority was represented by commissioner general Veronique Herminie, deputy commissioner general Fred Morel and commissioner of customs Paul Barrack.

The assembly resumes this morning at 9am.

Laura Pillay