207Criteria for the establishment of a public Fund
(1) The establishment of a public Fund shall at the minimum meet the following requirements—
- (a) be initiated through a proposal by the Cabinet secretary responsible for the national government entity under which the functions of the Fund fall clearly setting out the justifications and submit it to the Cabinet Secretary;
- (b) the Cabinet Secretary shall certify in writing that the functions and the public services to be delivered through the Fund cannot be delivered through the structure of budget appropriations;
- (c) provide a clear justification as to why a fund structure is deemed appropriate for improved service delivery in light of the legislative and policy mandate of the national government entity;
- (d) the administration costs of the Fund shall be a maximum of three (3%) percent of the approved budgets of the Fund;
- (e) the Cabinet Secretary responsible for the national government entity functions shall confirm in writing that the establishment of the Fund and it's continued existence will not depend on annual financing from the national exchequer;
- (f) a Fund that has a lifespan of less two years shall not be approved unless it is for unforeseen and urgent need;
- (g) the Cabinet Secretary shall grant approval in writing before establishment of Fund;
- (h) the Cabinet Secretary responsible for the entity shall demonstrate how the activities of the proposed Public Fund shall fit in the overall Medium Term Plan and Budget Policy Statement; and
- (i) the initial approval for establishment of a national public Fund shall be for a maximum period of ten (10) years, beyond which Cabinet and Parliament approvals shall be sought.
(2) Despite the provisions of paragraph (1) of this regulation, the Cabinet Secretary may from time to time issue further guidelines on the establishment of national public Funds.