CHAPTER 125
PRODUCTION DEVELOPMENT FUNDS ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

   Section

Title

   1.   Short title.

   2.   Interpretation.

   3.   Establishment of funds.

   4.   Resources of funds.

   5.   Management of funds.

   6.   Accounts and audit.

   6A.   Power of Minister to reallocate moneys in funds.

   7.   Power of Minister to reallocate monies in funds.

SCHEDULE

CHAPTER 125
THE PRODUCTION DEVELOPMENT FUNDS ACT

An Act to provide for the establishment of production development funds and the management of such funds.

[1st July, 1974]
[s. 1]

Acts Nos.
21 of 1974
9 of 1977
25 of 1980
16 of 1983
12 of 1985
13 of 1985
G.Ns. Nos.
40 of 1975
53 of 1975
27 of 1976
5 of 1983
213 of 1991

1.   Short title

   This Act may be cited as the Production Development Funds Act.

2.   Interpretation

   In this Act, unless the context otherwise requires–

   "financial year" shall have the same meaning as that expression has in the Public Finance Act *;

   "fund" means a production development fund established by or under this Act;

   "Minister" means the Minister responsible for finance;

   "parastatal organisation" means–

   (a)   a body corporate established by or under any Act other than the Companies Act *;

   (b)   a trade union registered under the Trade Unions Act *;

   (c)   any company registered under the Companies Act * not less than fifty per centum of the issued share capital of which is owned by the Government or a parastatal organisation or, where the company is limited by guarantee, a company in respect of which the amount that the Government or the parastatal organisation which is a member of such company has undertaken to contribute in the event of the company being wound up is not less than fifty per centum of the aggregate amount which all the members have undertaken to contribute; and references in this paragraph to a parastatal organisation include references to any such company.

3.   Establishment of funds

   (1) There are hereby established production development funds specified in the first column of the Schedule to this Act for the purposes specified opposite thereto in the second column of the said Schedule.

   (2) Every production development fund shall be managed by the parastatal organisation specified in relation thereto in the third column of the Schedule to this Act.

   (3) The Minister may by order in the Gazette, amend the Schedule to this Act so as to establish production development funds in addition to those specified by or under this Act or to amend any of the particulars in any of the columns in the said Schedule:

   Provided that–

   (a)   no fund shall be established under this subsection–

      (i)   unless in the opinion of the Minister the establishment of the fund will significantly contribute to enhancement of the productive capacity of the United Republic;

      (ii)   for any purpose other than–

         (A)   the financing, whether by way of loan or equity, of fixed investment by a parastatal organisation engaged in the production of goods or services;

         (B)   the financing, whether by way of loan or grant, of research by or for the benefit of parastatal organisations or other institutions engaged in the production of goods or services;

         (C)   the financing, whether by way of loan or grant, of the training of citizens of the United Republic by or for the benefit of parastatal organisations or other institutions engaged in the production of goods or services, including the provision of buildings, equipment and ancillary facilities reasonably necessary for the carrying out of the training programme;

   (b)   no person other than a parastatal organisation shall be charged with the management of any such fund so established;

   (c)   every order made under this subsection shall be submitted for the approval, to be signified by resolution, of the National Assembly within four weeks of the order being made or, if the National Assembly is not meeting or does not meet within such period, at its next meeting and unless the order is so approved, that order shall expire and any fund established pursuant thereto shall be wound up;

   (d)   the provisions of paragraph (c) of this proviso shall take effect subject to the proviso to section 5.

4.   Resources of funds Act No. 16 of 1983 s. 28">

   The resources of each fund shall be–

   (a)   such sums as may be provided for the fund by Parliament, either by way of grant or loan;

   (b)   such allocation of public revenue raised by taxation or otherwise as may be specified in relation to the fund in the fourth column of the Schedule to this Act;

   (c)   such sums as may in any manner become payable to the fund as a result of operations of the fund or sums which may be released by the Treasury Registrar from the allocation of public revenue specified in relation to the fund in the fourth column of the Schedule to this Act and deposited in the fund account required to be opened for the purpose of the fund under section 5(1).

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