Public Enterprises Holding and Administration’s profile
The Public Enterprises Holding and Administration’s (PEHA) establishment goes back to 2003/2004. The Administration passed through different stages of restructuring. The Administration served as Ministry and as an Agency in different times. Finally, Proclamation No. 1263/2022 establishes it as the Public Enterprises Holding and Administration (PEHA) in 2022.
PEHA Mission
By implementing a procedure, which is supported by corporate governance and corporate finance leadership experience and technology, enhance the contribution that public enterprises make to the socioeconomic developments. Public interest, Excellence, Team work, Innovation, Rule of law
PEHA Vision
By enabling public enterprises to be competitive at national and international level, create sustainable value for stakeholders
PEHA Values
Public interest, Excellence, Team work, Innovation, Rule of law
Render Public Investment unto the People!
PEHA’s Main Objectives, Power and Duties of the Administration
- To develop modern corporate governance and corporate finance system that make Public Enterprises effective, competitive and profitable and assure its implementation;
- To supervise the governance and management of Public Enterprises;
- To protect the ownership rights of the state in Public Enterprises and Share Companies by representing the state;
- Ensure the separation of regulatory oversight, policy making and government ownership functions over Public Enterprises; and
- To foster better coordination between government development policy and performance of Public Enterprises.
- Ensure that Public Enterprises have developed strategic and annual plans, approve such plans, supervise, and monitor implementation of same and take corrective measures;
- Approve audit reports of Public Enterprises, ensure that corrective measures are taken on audit findings;
- Develop modern corporate governance and financial management system to improve the performance and competitiveness of Public Enterprises.
- Establish a system to ensure that Public Enterprises are managed by individuals with the right skills, expertise, experience and qualification;
- Submit recommendations to the government on potential new investment areas and expansion of existing investments and implement same upon approval;
- Submit recommendations to the government on dissolution, amalgamation or division of Public Enterprises, and implement same upon approval;
- Submit proposal to the government on the privatization of Public Enterprises under the auspices of the Ministry and upon approval, implement the same in accordance with the provisions of Proclamations Number 146/1998 and 182/1999.
- Develop dividend policy, submit recommendation to the Ministry on the amount of the state dividends to be paid to the government by Public Enterprises in each financial year, and follow up the implementation of same;
- Provide advice to the Ministry on issues pertaining to the write off of the accounts of Public Enterprises and follow up the implementation thereof;
- Develop a system of tracking the aggregate performance of Public Enterprises as a portfolio of investment; submit overall performance report to the Ministry by closely monitoring the financial utilization, acquisition and repayment of loans by public enterprises;
- Facilitate conditions under which Public Enterprises allocate sufficient budget for research and innovation and disseminate findings of the research.
- Serve as a central depository of data related to Public Enterprises; provide aggregate information of public enterprises.
- Without prejudice to the powers and duties assigned to the board under Public Enterprises proclamation No. 25/1992, shall give approval on the appointment and dismissal of chief executive officer of Public Enterprises.
- Enterprises exchange their experiences, and facilitate training programs that help to build their governance capacity;
- Finalize pending restitution claims regarding properties expropriated unlawfully in accordance with Proclamation Number 572/2008 and other relevant laws.
- The Agency shall implement the powers and duties given to a Supervising Authority of Public Enterprises by Proclamation No. 25/1992, With respect to Public Enterprises made accountable to it;
- Carry out other duties that are necessary to protect the ownership interest of the state in Public Enterprises and share companies.
- Own property, conclude contracts, sue and be sued in its name
- Undertake such other activities that contribute to the achievement of its objectives.
The three major milestone PEHA
Effective portfolio management involves maintaining an appropriate investment mix for a given risk tolerance. The key elements of portfolio management are:
- Investment strategy (a summary of approaches that guide investments over the short and long term),
- value creation strategy (the structured process to create and protect value for all assets within the portfolio) and
- A detailed framework to actively instigate risk management policies at a portfolio level.
Enterprise management is the central function of PEHA and is focused on improving the performance of SOEs. Robust enterprise management is the vehicle by which PEHA ensure that their value creation strategies for the portfolio of SOEs are executed. Enterprise management is comprised of three components:
- SOE corporate governance
- Enterprise performance management:
- Enterprise risk management:
The Proclamation mandates PEHA to employ and administer its employees in accordance to the Federal Civil Service laws. The law does not allow PEHA to deviate from the civil service compensation package.
- PEHA organizational structure
- PEHA’s recruitment and retention of required skills
- PEHA performance management
- Transformation summary and implementation plans
Public Enterprise Holding and Administration
PEHA
PEHA
Gerji Emperial, Addis Ababa
Mon – Fri: 8:30 am – 5:30 pm