Third Schedule, The National Commission for Privatisation Act, 2002

GUIDELINES FOR PRIVATISATION OF PARTICULAR PUBLIC ENTERPRISES The following shall apply as guidelines to the divestiture of the particular public enterprises referred to therein :— (a) For the loss making public enterprises engaged in production or trade in services which are operating in competitive markets, the divestiture shall be by out right sale with the small and medium sized ones being privatised on "as is" basis, following the completion of the valuation of their assets, with a view to ensuring that— (i) a fair price is obtained for the public enterprise; (ii) the divestiture is conducted in the most efficient and transparent manner so as to maximise the benefit to Government and the tax payer; (iii) the public enterprises concerned will not require any recapitalisation or restructuring before sale and are, where possible, sold to local investors: Provided that immediate steps shall be taken to remove and sell nonessential assets from public enterprises such as real estate owned by the Sierra Leone State Lottery in London, apartments and houses owned by various public enterprises in Sierra Leone after an inventory of all such assets has been taken. 28 No. 12 National Commission for Privatisation Act 2002 (b) In the case of large public enterprises, especially, the utilities. measures to improve the efficiency of those public enterprises shall be instituted by the Commission initially, where outright sale is not financially or politically feasible in the short term, using management contracts, performance contracts, joint ventures and leases while the legal, organisational, managerial and financial aspects of those public enterprises are being restructured in preparation of their sale and, in the case of the energy, communications and transportation sectors, while studies are conducted or undertaken to consider if such services could be privatised immediately, so as to conserve donor funding for services to the poor; (c) The divestiture of Government interests in commercial operations in the financial and insurance sectors shall be carried out as soon as possible, recognising the contributions of current employees and management, where appropriate, but giving primary importance to maximising the sales price and the revenue to be generated, while in the particular case of the National Investment Bank, immediate steps shall be taken by the Commission to strengthen management and ensure that the Board of Directors include those sectors most involved in the development objectives of that Bank and can ensure the proper and professional operations of he Bank; (d) Recognising that certain public enterprises, specifically, the Sierra Leone Ports Authority, Sierra Leone Airports Authority and the Sierra Leone State Lottery provide functions generally reserved to Government to hold and preserve in the public interest, these public enterprises shall become subjected to the authority of the Commission, which shall take immediate steps for the appointment of Boards of Directors and management to achieve clearly defined objectives, such Boards of Directors, being broad based to include persons with the background and No. 12 National Commission for Privatisation Act 2002 29 understanding of the public enterprise concerned and representatives of civil society most affected by the operations of such public enterprise, so, however, that the selection of management shall be transparent and documented by a written management contract clearly stating the rights and obligations of management which shall be of sufficient duration to maximise the benefits accruing thorough experience and which shall not be terminated except for good cause approved by the Commission; (e) Employee ownership schemes and effective local participation shall be given high priority in the sale process so as to mobilise domestic support for the programme for its success, but the foregoing shall not justify the sale of assets on a discounted or less than market value basis. PASSED in Parliament this *10th* day of *September*, in the year of our Lord two thousand and two. J. A. CARPENTER, *Clerk of Parliament.* THIS PRINTED IMPRESSION has been carefully compared by me with the Bill which has passed Parliament and found by me to be a true and correctly printed copy of the said Bill. J. A. CARPENTER, *Clerk of Parliament.* PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTING DEPARTMENT, SIERRA LEONE. *GAZETTE* No. 67 OF 7TH NOVEMBER, 2002.