PRESS SECRETARY

OFFICE OF THE PRIME MINISTER

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Article

STATE OWNED ENTERPRISES (STATUTORY BODIES) IN GRENADA TO HAVE CLOSER WORKING RELATIONSHIP WITH MINISTRY OF FINANCE

In spite of extensive privatization over the last two decades, state-owned enterprises (SOE) are still a mainstay in many developing countries. Generally speaking, a SOE, also called Statutory Body, is a legal entity (company), owned by government, created to undertake a specific public purpose with public funds and/or public property. SOEs operate as a commercial business even though they are owned by the state. They have boards of directors, appointed by ministers, to take full responsibility for the running of the business.

In Grenada, there are 28 registered statutory bodies, however only 25 are operational. These are:

§ Grenada Cocoa Association (GCA) - provides services to farmers and is responsible for the processing and marketing of cocoa. GCA falls under the Ministry of Agriculture, Lands, Forestry, Fisheries, Public Utilities and Energy.

§ Grenada Cooperative Nutmeg Association (GCNA) – provides services to farmers and is responsible for the processing and marketing of nutmeg, as well as the distillation and development of secondary products.  GCNA falls under the Ministry of Agriculture, Lands, Forestry, Fisheries, Public Utilities and Energy.

§ Grenada Food and Nutrition Council (GFNC) – promotes the development of optimum nutritional status in all segments of the population. GFNC falls under the Ministry of Agriculture, Lands, Forestry, Fisheries, Public Utilities and Energy.

§ Gravel Concrete and Emulsion Production Corporation- charged to extract and sell natural aggregates (gravel, stone and beach sand) as well as produce and sell ready-mix concrete and concrete products, and manufacturing blocks and crushed stone. Gravel Concrete and Emulsion Production Corporation falls under the Ministry of Communication, Works and Transport.

§ Grenada Postal Corporation (GPC) – services include the selling of stamp and postal money orders; the processing of registered and express mail and parcel post; the provision of private letterboxes; and in general postage and delivery. GPC also engages in philately (the collection and study of postage stamps and related items) as well as bulk postage and delivery. GPC falls under the Ministry of Communication, Works and Transport.

§ National Telecommunications Regulatory Commission (NTRC) – coordinates, facilitates and promotes the purposes of the Eastern Caribbean Telecommunications Authority (ECTEL) Treaty to establish an effective regulatory regime that will enhance the operation of telecommunications in the interests of sustainable development in Grenada. NTRC falls under the Ministry of Agriculture, Lands, Forestry, Fisheries, Public Utilities and Energy.

§ National Water and Sewerage Authority (NAWASA) – supplies water to domestic, commercial and industrial users. Also operates two sewerage collection and disposal systems. NAWASA falls under the Ministry of Communication, Works and Transport.

§ Grenada Bureau of Standards (GBS) – provides service in standardization, quality assurance, metrology and compliance to standards with a view to enhancing the country’s competitiveness. GBS falls under the Ministry of Economic Development and Planning.

§ Grenada Craft Centre – promotes the development of craft in Grenada. Grenada Craft Centre falls under the Ministry of Tourism, Culture and the Performing Arts.

§ Grenada Development Bank (GDB) – services include loans for educational advancement, industrial, agricultural, fishing and tourism development, as well as mortgages. GDB falls under the Ministry of Finance.

§ Grenada Industrial Development Corporation (GIDC) – responsible for facilitating investment throughout the state. GIDC provides a One Stop Shop Service liaison between investors and Government department and assists investors in obtaining incentives, work permits, aliens land holding licences, land development and building permits, leases and the necessary approval. GIDC falls under the Ministry of Economic Development and Planning.

§ Grenada Authority for the Regulation of Financial Institutions (GARFIN) – serves as the single regulatory agency with responsibility for regulating and supervising all non-bank financial institutions and services in Grenada.  These institutions and services include the insurance companies, credit unions, offshore financial services, the building and loan society, money transfer agencies and other such services. GARFIN falls under the Ministry of Finance.

§ Grenada Micro Enterprise Project – provides soft loans to small enterprises. The Grenada Micro Enterprise Project falls under the Ministry of Economic Development and Planning.

§ Grenada Ports Authority - oversees activities at the various ports in the state Grenada. The Grenada Ports Authority falls under the Ministry of Finance.

§ Marketing and National Importing Board (MNIB) – services include importation and distribution of basic food commodities (rice, brown sugar, white sugar and full cream powdered milk) in bulk. Also markets and exports fresh produce, local agro-products and other food products. The MNIB falls under the Ministry of Economic Development and Planning.

§ The Grenada Solid Waste Management Authority (GSWA) – responsible for developing solid waste management facilities, improving the coverage and effectiveness of solid waste collection and disposal, and street cleaning in towns. GSWA falls under the Ministry of Health, Social Security, the Environment and Ecclesiastical Relations.

§ Housing Authority of Grenada (HAG) – provides low and medium cost housing to Grenadians. HAG falls under the Ministry of Social Development.

§ Grenada Airport Authority (GAA) – responsible for overseeing the activities of the airports in Grenada and Carriacou. GAA falls under the Ministry of Tourism, Civil Aviation, Culture and the Performing Arts.

§ Grenada Board of Tourism (GBT) – promotes Grenada’s tourism product on the local, regional and international market. GBT falls under the Ministry of Tourism, Civil Aviation, Culture and the Performing Arts.

§ Grenada Cultural Foundation (GCF) – charged with the coordinating of all national cultural events and collaborates with the various local associations and organizations in the production and staging of activities. GCF falls under the Ministry of Tourism, Civil Aviation, Culture and the Performing Arts.

§ National Insurance Scheme (NIS) – collects contributions and pays benefits to insured persons for sickness, maternity, funerals, age, invalidity, survivors and employment injury. Protects members against economic and social distress. NIS falls under the Ministry of Health, Social Security, the Environment and Ecclesiastical Relations.

§ Grenada National Lottery Authority (GNLA) – provides support for the development of youth, sports, culture, and infrastructure projects. GNLA falls under the Ministry of Sports, Community Development and Cooperatives.

§ Grenada National Stadium Authority (GNSA) – charged with marketing, promoting and organizing all events and activities at the National Stadium. GNSA falls under the Ministry of Sports, Community Development and Cooperatives.

§ Grenada National Museum – provides services (information) and displays, for the general public, on the historical facts, artifacts, and historical relics of Grenada. Also hosts arts exhibitions. Grenada National Museum falls under the Ministry of Tourism, Civil Aviation, Culture and the Performing Arts.

§ Child Welfare Authority – provides, maintains and supervises the child care homes of the State. They offer counseling services for children in need of protection, as well as the families of such children. Child Welfare Authority falls under the Ministry of Social Development.

The importance of SOEs lies in the fact that they play an important part in a country’s economic development through their contributions to gross domestic product (GDP), employment and income. 

In a recent meeting held with the Minister for Finance, Dr. the Rt. Hon. Keith Mitchell and Permanent Secretary in the Ministry of Finance, Mr. Lennox Andrews, the management of the local statutory bodies were reminded by Mr. Andrews of the need for them to work more closely with the Ministry of Finance in the management of their finances, since their performance impacts on Government’s overall financial performance. He reminded that even though they may be operating as an ‘independent’ organisation and is not a part of Central Government operations, they are still a part of the public sector and so is directly accountable to the tax payers for their operations. 

In his delivery to the meeting, Prime Minister Mitchell reminded the representatives that as managers of institutions owned by Government, they must always be conscious of the impact of their decisions on the economy and must always ensure that their decisions are in accord with Government policies. He explained to them that being a part of the public sector, the actions of SOEs can be used as a premise for decisions made by other sectors of the public sector and in that light of this, decisions must be made strategically and after comprehensive assessment.  He also spoke of the fact that Ministers have been mandated to play a stronger role in overseeing the management of the organisations which falls under their portfolio, as a means of ensuring that all aspects are considered in the decision making processes and that Cabinet is regularly updated on the operations of the organizations.

The Prime Minister also took the opportunity to update the meeting on the various private sector projects that are currently on-stream in Grenada. He encouraged the management of the statutory bodies to strategically position their organisations to take advantage of the opportunities that these initiatives might present to them through the provision of services, as a means of maximizing their potential revenues. The Prime Minister took time to outline the potential economic benefits of the investment projects and described this period as one of the most exciting times for Grenada in the investment arena. He also expressed excitement in the fact that many of the projects are being undertaken by local investors.

In response, representatives of the SOEs took the opportunity to enlighten the Prime Minister on some of their challenges and sought clarification on a number of matters that are affecting them. They also expressed their need for stronger support from the Ministry of Finance in providing a clearer direction on public finance matters.

At the end of the meeting it was agreed that:

ü Quarterly meetings will be held with Central Government and the SOEs;

ü Quarterly reports will be provided to the SOEs on the state of the country’s economy; and

ü SOEs will submit timely financial statements so that consolidated financial reports can be prepared.

In concluding the meeting, the Prime Minister commended the SOEs on their endurance and ability to operate proficiently despite the difficult circumstances experienced with the passage of hurricanes Ivan and Emily.