Perry Pahladsingh

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


• 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


• 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


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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



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


Introduction



Introduction

Sovereign Wealth Funds• Santiago Principles


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


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


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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The New Agenda for the Public Sector

Risk Management

Exit StrategyRegain

Confidence of the Public



Disclaimer

Copyright © 2010 Pahladsingh Accountancy & Consultancy

All rights reserved. No part of this publication may betranslated, reprinted or reproduced or utilised in anyform (either in whole or in part) or by any electronic,mechanical or other means now known or hereafter invented(including photocopying and recording) or in any informationstorage and retrieval system without prior permission in

writing from Pahladsingh Accountancy & Consultancy.

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.

Perry Pahladsingh

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