African Law Archive -

FEDERAL NEGARIT GAZETA

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

2^ndYear No. 7 ADDIS ABABA - 13^thFebruary, 1996

CONTENTS

Proclamation No. 19/1996

Ethiopian Social Rehabilitation and Development Fund Establishment Proclamation

PROCLAMATION NO. 19/1996

A PROCLAMATION TO PROVIDE FOR THE ESTABLISHMENT OF THE ETHIOPIAN SOCIAL REHABILITATION AND DEVELOPMENT FUND

WHEREAS, it is necessary to help the rural poor have access to basic social services, and to raise their income generating potential through the provision of economic infrastructure and services;

WHEREAS, to this end, it is found necessary to expand the Ethiopian Social Rehabilitation Fund, initially established on a pilot basis, into a country-wide programme;

WHEREAS, it is necessary to create an organ for the implementation of this programme and for the suitable management of a bottom-up approach of project identification, formulation and implementation;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

PART ONE

General

1. Short Title

This Proclamation may be cited as the "Ethiopian Social Rehabilitation and Development Fund Establishment Proclamation No. 19/1996."

2. Establishment

1) There is hereby established the Ethiopian Social Rehabilitation and Development Fund (hereinafter "the Fund") as an autonomous government entity having its own juridical personality.

2) The Fund shall be accountable to the Prime Minister.

3. Objectives of the Fund

The Fund shall have the following objectives:

1) to improve the living standards of rural communities through the provision and strengthening of basic social services;

2) to enhance the income generating capacity of poor communities by laying down economic infrastructure and providing services;

3) to promote a community-based approach in project identification, preparation, implementation, administration and maintenance;

4) to assist in the formation and development of self-sustaining micro finance institutions to provide credit services to the poor;

5) to assist grassroots organizations and communities develop their technical and managerial capabilities in all aspects of project activities.

4. Powers and Duties of the Fund

The Fund shall have the powers and duties to:

1) provide assistance in the establishment and strengthening of basic social services;

2) provide assistance in the creation of employment opportunities through the execution of sub-projects at the local level and the provision of micro-credit on a pilot basis, with a view to having the rural poor engage in sustainable income generating activities;

3) organize community-training programmes to enhance the participation capabilites of grassroots community organizations and communities in all aspects of project activity;

4) encourage women to participate in all project activities;

5) own property;

6) enter into contracts;

7) sue and be sued in its own name;

8) perform such other activities as are necessary for the attainment of its objectives.

5. Organization of the Fund

The Fund shall have:

1) at the Central Level:

(a) a Board of the Ethiopian Social Rehabilitation and Development Fund (hereinafter "the Board");

(b) a Central Office;

2) In each Region:

(a) a Regional Steering Committee;

(b) a Regional Fund Office;

PART TWO

Central Organs of the Fund

6. Members of the Board

The Board shall have the following members:

1) the Prime Minister or his representative…………………………………………….Chairman

2) the Head of the Regional Affairs Sector of the Office of the Prime Minister………..member

3) the Minister of Finance……………………………………………………………….member

4) the Minister of Economic Development and Cooperation…………………………...member

5) the Minister of Water Resources……………………………………………………..member

6) the Minister of Agriculture…………………………………………………………...member

7) the General Manager of the Fund………………………………………Member & Secretary

7. Powers and Duties of the Board

1 ) The Board shall direct and supervise the overall administration and operation of the Fund.

2) Without limiting the generality of the foregoing, the Board shall:

(a) formulate policies as well as Operational Directives and amendments thereto;

(b) approve the annual budget and work programme;

(d) determine the salary scales for personnel;

(e) secure the cooperation of Regional and, appropriate, Federal government organs for the efficient and smooth implementation of the Fund's overall activities;

(f) decide on other policy matters of the Fund.

8. Meetings of the Board

1) The Board shall meet once every three months; provided, however, that extraordinary meetings may be held at any time at the call of the Chairman.

2) There shall be a quorum where more than half of the members of the Board are present at a meeting.

3) Decisions of the Board shall be made by a simple majority vote of the members present. In case of a tie, the Chairman shall have a casting vote.

4) The Board may adopt its own rules of procedure.

9. Powers and Duties of the Central Office

The Fund's Central Office shall have the powers and duties to:

1) promote the activities of the Fund throughout the country;

2) assist Regional Fund Offices develop their capability in project preparation, promotion, appraisal, implementation, monitoring and follow up;

3) prepare and consolidate the annual budget and work programme of the Fund and submit same to the

4) monitor the budgetary and work programme implementation as well as the financial operations of Regional Fund Offices and ensure their compliance with the Operational Directives of the Fund;

5) effect expenditure in accordance with the budget approved for the Central Office;

6) review replenishment requests from Regional Fund Offices and forward same to financing sources;

7) undertake, and effect payments for, foreign purchases;

8) prepare and submit to the Board quarterly, semi-annual and annual reports on the activities and financial situation of the Fund;

9) manage the overall capacity building, training and research programmes of the Fund;

10) forward to the Board policy proposals on the Fund;

11) oversee the execution of the Fund's activities.

10. The General Manager and the Deputy General Manager of' the Fund

1) The General Manager and the Deputy General Manager of the Fund shall be appointed by the Board.

2) The General Manager shall, subject to the overall directing of the Board, be responsible for the proper execution of the activities of the Fund in accordance with its Operational Directives.

3) Without limiting the generality of the foregoing, the General Manager shall:

(a) exercise the powers and duties of the Central Office provided for in Article 9 herein;

(b) employ and administer employees of the Central Office in accordance with federal civil service laws;

(d) represent the Fund in all its dealings with third parties at the level of the Central Office;

(e) delegate his authority to employees of the Central Office where found necessary for the efficient performance of the Fund's activities.

4) In the absene of the General Manager, the Deputy General Manager shall discharge all the functions of the General Manager.

PART THREE

Regional Organs of the Fund

11. Members of the Regional Steering Committee

A Regional Steering Committee shall have the following members:

1) the Chairperson of the Regional Council or his/her representative……………..Chairperson

2) the Head of the Social Development Sector…………………………………….Member(s)

3) the Head of the Economic Development Sector………………………………...Member(s)

4) the Head of the Planning and Economic Development Bureau…………………Member(s)

5) the Head of the Finance Bureau…………………………………………………Member(s)

6) a Representative of the branch of the Commercial Bank of Ethiopia or of the

Development Bank of Ethiopia…………………………………………………… Member(s)

7) Representatives of Civic Organizations……………………………………….. Member(s)

8) the Manager of the Regional Fund Office……………………………Member & Secretary

12.Powers and Duties of a Regional Steering Committee

Each Regional Steering Committee shall have the power and duty to:

1) ensure that the activities of the Fund within the Region are carried out in accordance with this Proclamation, the Operational Directives and the decisions of the Board;

2) approve the annual work programme and budget proposed by the Regional Fund Office and submit same to the Board, through the Central Office, for final decision;

3) approve the semi-annual and annual reports of the Regional Fund Office on physical implementation and financial situation;

4) decide on project proposals and plans recommended by the Regional Fund Office as well as on other issues relating to the implementation of the Fund's work programme for the Region.

13. Meetings of a Regional Steering Committee

1 ) The Regional Steering Committee shall meet once every three months; provided that extraordinary meetings may be held at any time at the call of the Chairman.

2) There shall be a quorum where more than half of the members of the Committee are present at a meeting.

3) Decisions of the Committee shall be made by a simple majority vote of the members present. In case of a tie, the Chairman shall have a casting vote.

4) The Committee may adopt its own rules of procedure.

14. Powers and Duties of a Regional Fund Office

Each Regional Fund Office shall have the power and duty to:

1) promote the activities of the Fund within the Region;

2) prepare the annual work programme and budget proposals for the Region and sumbit same to the Steering Committee and to the Central Office upon approval by the former;

3) appraise sub-project proposals submitted by applicants and forward same to the Regional Steering Committee together with its recommendations thereon;

4) make arrangements for the implementation as well as for the necessary monitoring and handover of projects to beneficiaries;

5) put project funds to proper use;

6) prepare, and submit to the Steering Committee, semi-annual and annual financial and physical implementation reports, and forward same to the Central Office upon approval by the former;

7) give access, to the Central Office, to any financial and project records;

8) prepare replenishment requests as per the Operational Directives and submit same to the Central Office for processing.

15. The Manager of a Regional Fund Office

1) The Manager of a Regional Fund Office shall be appointed by the respective Regional Steering Committee.

2) The Manager shall, subject to the overall directing of the Steering Committee, be responsible for the proper execution of the Fund's regional activities in accordance with the Operational Directives.

3) Without limiting the generality of the foregoing, the Manager shall:

(a) exercise the powers and duties of the Regional Fund Office provided for in Article 14

hereinabove;

(b) employ and administer employees of the Regional Fund Office in accordance with federal civil service laws;

(d) represent the Fund in all its dealings with third parties at the level of the Regional Fund Office;

(e) delegate his authority to employees of the Regional Fund Office where found necessary for the efficient performance of the Fund's activities in the Region.

PART FOUR

Miscellaneous Provisions

16. Uniformity of Practice

With a view to ensuring uniformity of practice, the Operational Directives shall govern all operations and activities of the fund.

17. Budget

1) The budget of the Fund shall be drawn from financial contributions by the Federal Government, donor agencies and the community at large as well as from loans by the World Bank.

2) Additional resources may be made available to the Fund, in the form of office space, equipment, materials or otherwise by Regions, the Federal Government and donor agencies.

3) The budget shall be utilized in conformity with the credit and grant agreements under which contributions have been made.

18. Bank Accounts

1) The contributions referred to in Article 17(1) hereinabove shall be deposited in a bank in the

name of the Fund.

2) The Central Office shall have bank accounts for:

(a) foreign currency, received from foreign creditors and contributing donors; and

(b) local currency.

3) A Regional Fund Office shall have two separate accounts of local currency for:

(a) sub-project use, and

(b) operating costs.

19. Audit

The accounts of the Fund shall be audited annually by external auditors.

20. Procurement and Disbursement Procedures

The Fund shall have its own procurement and disbursement procedures as provided for in its Operational Directives.

21. Transfer of Rights and Obligations

The rights and obligations of the Ethiopian Social Rehabilitation Fund are hereby transferred to the Fund.

22. Duty to Cooperate

Any individual, government organs and private organizations shall have the duty to cooperate with the Fund in the execution of its activities.

23. Effective Date

This Proclamation shall come into force as of the 13^th day of February, 1996.

Done at Addis Ababa, this 13^thday of February, 1996.

NEGASO GIDADA (DR.)

PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA