Differences between Public corporation and government owed agent Uganda examples
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This article will give explain the difference between a public corporation and private own companies in Uganda.
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Differences between Public corporation and government owed agent Uganda examples
- 1. FACULTY OF MANAGEMENT AND BUSINESS STUDIES PROGRAMME: BPA-S ONE, SEM 2 COURSE UNIT: ADMINISTRATIVE LAW COURSE CODE: LAW 1203 LECTURER: MR. TUSIIME ALEX NAME: ALEX MANA RICHARD SEBIT REG NO: 17/639/BPA-S DATE 14/MARCH/2018 QUESTION: (A) What Are Public Corporations? (B) How Are Public Corporations Different From Other Government Bodies?
- 2. (a) Public Corporation is a body corporate created by an Act of Parliament or Legislature; These Corporations are treated both as public authorities and as, commercial concerns. As public authorities, they are subject to the normal controls of the constitution and administrative laws to supervision by the Minister, who in turn is answerable to Parliament, and by Courts through the control which they exercise over administrative authorities. Its name is notified in the official gazette of the Central or State Government. It is an artificial person with the flexibility of the private sector and the powers of the government. They are set up with the objective of carrying out a specific type of commercial activity. The powers and functions of public corporations are well defined and they are financially independent. These organizations are formed for administering nationalized industries or undertakings. Many service organizations of the government are set up in the form of corporations. Examples of Government purely owned corporation in Uganda are; Civil Aviation Authority(CAA) To direct and regulate air transport industry in Uganda. Electricity Regulatory Authority (ERA) To regulate the Generation, Transmission, Sale, Export, Import and Distribution of electrical energy in Uganda. Uganda Revenue Authority (URA) To provide Uganda with excellent revenue services with passion and purpose. Inspectorate Of Government (IGG) To promote good governance through enhancing accountability and transparency, and enforcement of the rule of law and administrative justice in public offices. Uganda manufactures association (UMA) To promote and protect the interests of industrialists and manufacturers in Uganda. Judicial Service Commission(JSC) To establish an effective and efficient judiciary in Uganda and to contribute to the promotion of law and order National Drug Authority (NDA) To ensure access to quality, safe and efficacious human and veterinary medicines and other healthcare products through the regulation and control of their production, importation, distribution, and use. National Social Security Fund(NSSF) To secure a better life for our growing membership providing quality products, great customer service and offering competitive returns in a transparent and efficient environment. Public Procurement And Disposal Of Public Assets Authority (PPDA) To regulate and facilitate public procurement and disposal in Uganda by setting standards, building capacity and monitoring compliance and ultimately contribute to socio-economic development.
- 3. Uganda Communication Commission (UCC) To facilitate the provision of innovative, effective and efficient communications services through excellence in our regulation Uganda National Bureau Of Standards(UNBS) To provide standards, measurements, and conformity assessment services for improved quality of life. A statutory corporation is those corporation created by the state. Their precise nature varies by jurisdiction, thus, they might be ordinary companies corporations owned by a government with or without other shareholders, or they might be a body without shareholders that is controlled by the national or sub-national government to the in some cases minimal extent provided for in the creating legislation. Statutory corporation; this is a corporation created by stature is owned in parts or in whole by government examples here in Uganda are ; National Insurance Corporation(NIC) National Water And Sewerage Corporation(NWSC) Uganda broadcasting corporation(UBC) The State Public Company limited are type of enterprise established under the ordinary company law of the country concerned, in which the government has a controlling interest, through its ownership of all or some of the shares. It thus covers enterprises wholly owned by the Public Authorities, as well as mixed enterprises through which the government enters into partnership with private owners of capital. Companies in which the Government or public bodies have shares in Uganda examples are; Uganda Landowners And Occupants Development Forum (Uloded) Ltd they are membership umbrella NGO register as a company limited by guarantee for landowners and people occupants. Uganda Tea Development Agency Ltd(UTDAI) Is a management agency owned by igara and kayonza tea factories, it was formed in 2001 to provide specialized services to the small holder's tea growers factories. Bank of Baroda Ltd; Barclays Bank of Uganda Ltd. East African General Insurance Co. Ltd. Madhvani Sugar Works Ltd; Standard Bank (Uganda) Ltd; Steel Corporation of E.A. Ltd and, Uganda Sugar Factory Ltd and many more others.
- 4. (b)The following are the differences between public corporations and government bodies; The public corporation is usually owned by the State as an instrument of the government. And it is also called the statutory corporation, While government bodies are purely government and it is also called as government company it's an organization authorized by law to perform any executive, legislative, judicial, regulatory, administrative, military, or police functions of any given territory or country. Government enterprise is financed by an annual appropriation from the Treasury which got its funds from tax revenues and donations, on the other hand, the Public Corporation is usually independently financed. It obtains its funds from borrowing, either from the Treasury or the public and from revenues derived from the sale of its goods and services. It is authorized to use and re-use its revenues. In the public corporation, the day to day decisions are taken by the management of the corporation; it is generally created by, or pursuant to, a special law defining its powers, duties, and immunities and prescribing the form of management and its relationship to established departments and ministries; whereas under state ownership, major policy decisions are taken by the government, wherever, the enterprise possesses the sovereign immunity of the State and cannot be used without the consent of the government. There are two different basic concepts in the management of public corporations, that is autonomy and accountability, it is generally exempted from most regulatory and prohibitory statutes applicable to expenditure of public funds while these two concepts are not seen in government departmental undertakings, the enterprise is subject to the budget, accounting and audit controls applicable to other government departments. Public corporations are autonomous bodies it is ordinarily not subject to the budget, accounting and audit laws, and procedures applicable to non-corporate agencies; while government bodies are not an autonomous bodies ,they are purely under the control of the government and minister concerned the enterprise is generally organized as a major sub-division of one of the central departments of government and is subject to the direct control of the head of the department; The minister may make regulations providing for procedure for the valuation of shares membership of the tribunal and the procedure to be followed by the tribunal in hearing appeals under this act. Public corporations can sue and be sued in their own name' as a body corporate, it is a separate entity for legal purposes and can Sue and be sued, enter into contracts, and acquire property in its own name. Corporations conducting business in their own name have been generally given greater freedom in making contracts and acquiring and disposing of property than ordinary government departments; On the other hand, government bodies are not a juristic person, that is to say, it can sue or can be sued on the name of the minister or secretary concerned.
- 5. In the public corporation employees are not civil servants; in the majority of cases, employees of public corporations are not civil servants and are recruited and remunerated under terms and conditions which the corporation itself determines. but maybe on deputation from the government; while in the government bodies employees are civil servants that is to say the permanent staff of the enterprise are civil servants, and the methods by which they are recruited, and the conditions of service under which they are employed, are ordinarily the same as for other civil servants. Government bodies do not possess commercial qualities. While the Public corporation is purely commercial are liability company that offers its securities for sales to the public The structure of the public corporation cannot be amended by the government itself. The structure of the public corporation can be altered only by parliament. Yet the articles of association of government company can be amended by the government without any reference to parliament. The labor problems between the employees and public corporations shall be settled by way of industrial tribunals and labor courts. On the other hand, the labor problems between the employees and government departmental undertakings shall be solved only by central administrative tribunals and state administrative tribunals. Industrial employment standing orders act shall apply to the public corporations while industrial employment standing orders act does not apply to the government departmental undertakings. The privilege of communications of state affairs of evidence does not apply to public corporations on the other hand privilege of communications of state affairs of evidence act can be invoked by government departments.
- 6. Conclusion Public Corporation is a body corporate created by an Act of Parliament or Legislature; These Corporations are treated both as public authorities and as, commercial concerns. As public authorities, they are subject to the normal controls of constitution and administrative laws to supervision by the Minister, who in turn is answerable to Parliament, and by Courts through the control which they exercise over administrative authorities In Uganda, there are three major types of corporation Purely government-owned corporation. examples are Uganda Revenue Authority (URA), Civil Aviation Authority(CAA), Electricity Regulatory Authority (ERA), National Social Security Fund(NSSF) and many others. Statutory corporation; this is a corporation created by stature is owned in parts or in whole by government examples here in Uganda are; National Insurance Corporation(NIC), National Water And Sewerage Corporation(NWSC), Uganda broadcasting corporation(UBC) and many more. Public Company limited are a type of an enterprise established under the ordinary company law of the country concerned, It thus covers enterprises wholly owned by the Public Authorities, as well as mixed enterprises through which the government enters into partnership with private owners of capital. examples are Uganda Tea Development Agency Ltd, Bank of Baroda Ltd; Barclays Bank of Uganda Ltd. East African General Insurance Co. Ltd. and other. The public corporation has the following features It is a corporate entity. It enjoys perpetual succession, has the power to acquire, hold or dispose of property and It can sue and be sued in its own name. It is created with a corpus or capital fund. All receipts are credited to the fund and payments are made from it. It can generate its own funds from its operating surplus and market borrowings. The employees are not civil servants but may be on deputation from the government. On the other hand, purely government bodies have the following features; It does not possess commercial qualities. It is not an autonomous body. It is purely under the control of the Government and Minister concerned. Examples: Railways, Postal & Telegraphs etc. the articles of association of Government Company can be amended by the Government without any reference to Parliament. It is a part of the executive. and final It is not a juristic person. It can sue or can be sued on the name of the Minister or Secretary concerned. The employees are civil servants.