perry pahladsingh
TRANSCRIPT
Governance in the Government
and the Public Sector
Lessons from Change
Perry Pahladsingh
1www.pahladsingh.in
Topics
Introduction
After the Crisis
Sovereign Wealth Funds
Road Ahead
Challenges
Opportunities
The New Agenda for the Public Sector
Risk Managment
Exit Strategy
Regain confidence of the
public
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Introduction
After the Crisis
New borders between Public
and Private Sector
Governance –Growing concern over stewardship
Movement to IFRS/IPSAS
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Introduction
After the Crisis
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• Debt incurred by the stimulus packages and bailouts leads to an increased pressure to become more efficient.
Introduction
After the Crisis
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•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
Introduction
After the Crisis
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• 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
Introduction
Sovereign Wealth Funds
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• 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
Introduction
Sovereign Wealth FundsInitially• US Banking, Financial
Services and Real Estate
• Passive Investor
Current• Manufacturing &
Services
• Partnerships and Joint-Ventures
Increased political, media
and public scrutiny
Need for greater operational
transparency
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Introduction
Sovereign Wealth Funds• Santiago Principles
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Legal Framework,
objectives and coordination
with macroeconomic
policies
Institutonal Framework and
Governance Structure
Investment and Risk
Management Framework
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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Road Ahead
Opportunities
Settle invoices on a 10-day
basis
Easier procurement for
vendors to compete
E-government: applying for ID’s
Indian Infrastrucure
Finance Company: 70 million jobs by
2010
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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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Change… in the Public Sector
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Change… in the Public Sector
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The New Agenda for the Public Sector
Risk Management
Exit StrategyRegain
Confidence of the Public
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Disclaimer
Copyright © 2010 Pahladsingh Accountancy & Consultancy
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Pahladsingh Accountancy & Consultancy does not acceptresponsibility for loss caused to any person who acts (orrefrains from acting) in reliance on the material in thispublication, whether such loss is caused by negligence orotherwise.