Presentation on Governance in the Public Sector

1. Governance in the Government
and the Public Sector
Lessons from Change
Perry Pahladsingh
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2. Topics
The New
Introduction Road Ahead Agenda for the
Public Sector
After the Crisis Risk Managment
Challenges
Exit Strategy
Sovereign Wealth Regain
Opportunities
Funds confidence of the
public
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3. Introduction
After the Crisis
New borders
Governance –
between Public Movement to
Growing concern
and Private IFRS/IPSAS
over stewardship
Sector
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4. Introduction
After the Crisis
• Debt incurred by the stimulus packages and bailouts
leads to an increased pressure to become more
efficient.
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5. Introduction
After the Crisis
•Governments have:
•Extended credits to banks
•Guaranteed liabilities of banks
•Purchased impaired debt
instruments
•Assumed control of banks
•Government as a major shareholder
set rules for operations and
management:
•Fuel efficient cars
•Restrictions on salaries and
bonuses for the board room
•Change of CEO
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6. Introduction
After the Crisis
• Three important lessons
– Stimulus programs need to be
administered carefully and transparently to
help rebuild trust and confidence
– High debt levels: governments cannot
return to business as usual
– Only a bold reform agenda can turn the
crisis into an advantage
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7. Introduction
Sovereign Wealth Funds
• Wholly owned government entities that invest a
nation’s surplus wealth
• High-profile transactions
• Government of Singapore: UBS US$ 61.3 Million
• Government of Singapore: Citigroup US$ 6,880 Million
• Mudabala (UAE): Carlyle Group US$ 1,350 Million
• Qatar Investment: Credit Suisse US$ 500 Million
• Mudabala: Air Berlin and Etihad US$ 130 Million
• Dubai Plans to acquire P&O-shipping
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8. Introduction
Sovereign Wealth Funds
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9. Introduction
Sovereign Wealth Funds
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10. Introduction
Sovereign Wealth Funds
Initially Current
• US Banking, Financial • Manufacturing &
Services and Real Estate Services
• Passive Investor • Partnerships and Joint-
Ventures
Increased
Need for greater
political, media
operational
and public
transparency
scrutiny
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11. Introduction
Sovereign Wealth Funds
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12. Introduction
Sovereign Wealth Funds
• Santiago Principles
Legal
Framework,
Institutonal Investment and
objectives and
Framework and Risk
coordination
Governance Management
with
Structure Framework
macroeconomic
policies
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13. Road Ahead
Challenges
• Keep public deficit under
control
• Cost-cutting may be
counterproductive
• Direct Management by
Government
• To tax or not to Tax
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14. Road Ahead
Opportunities
Indian
Easier Infrastrucure
Settle invoices
procurement for E-government: Finance
on a 10-day
vendors to applying for ID’s Company: 70
basis
compete million jobs by
2010
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15. Change… in the Public Sector
And those of us who
manage the public's dollars
will be held to account — to
spend wisely, reform bad
habits, and do our business
in the light of day —
because only then can we
restore the vital trust
between a people and their
government.
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16. Change… in the Public Sector
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17. Change… in the Public Sector
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18. The New Agenda for the Public Sector
Regain
Risk
Exit Strategy Confidence
Management
of the Public
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19. Disclaimer
Copyright © 2010 Pahladsingh Accountancy & Consultancy
All rights reserved. No part of this publication may be
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writing from Pahladsingh Accountancy & Consultancy.
Pahladsingh Accountancy & Consultancy does not accept
responsibility for loss caused to any person who acts (or
refrains from acting) in reliance on the material in this
publication, whether such loss is caused by negligence or
otherwise.
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