Mandating Procedures of Provinces Act, 2008
R 385
Road Traffic Management Corporation Act, 1999 (Act No. 20 of 1999)Chapter 2 : Establishment and governance of Road Traffic Management Corporation14. Business and financial plan |
| (1) | The financial year of the Corporation spans the period as determined by the Shareholders Committee. |
| (2) | The chief executive officer is responsible for the preparation of the business and financial plan, and to this end, must initiate the preparation of a draft plan in respect of the ensuing three financial years at least six months before the commencement of the first of those three financial years of the Corporation. |
| (3) | For the purpose of subsection (2), the managers of functional units must, in the format and within the period specified in a written instruction issued by the chief executive officer, provide draft inputs relating to the focus of their functional units to the draft business and financial plan. |
| (4) | The chief executive officer must— |
| (a) | consolidate the inputs contemplated in subsection (3); and |
| (b) | submit the draft business and financial plan to the managers of functional units for comment. |
| (5) | The chief executive officer must, after consideration of any comments received timeously from the managers of functional units, finalise the draft business and financial plan, and at least two months before the commencement of each financial year, submit the plan and any amendments thereto, to the Shareholders Committee for consideration and approval. |
| (6) | The draft business and financial plan must specify— |
| (a) | the objectives of the Corporation for each of the ensuing three financial years; |
| (b) | the Corporation’s scope of business, efficiency, financial performance and pricing of services; |
| (c) | the key performance indicators, targets and criteria for assessing the performance of the Corporation; |
| (d) | the principles, strategies, policies and budgets for achieving the objectives of the Corporation, which must include the commitment to contract out road traffic service provision to appropriate business groups and, where appropriate, phase in private investment in road traffic; |
| (e) | the measures that are necessary to protect the financial soundness of the Corporation, including— |
| (i) | the ring-fencing of functional units; and |
| (ii) | subject to section 34, the provision of business opportunities to the private sector; and |
| (f) | the thresholds at which the chief executive officer must obtain the approval of the Shareholders Committee in the awarding of tenders and granting of concessions. |
| (7) | For the purpose of mobilizing private sector investment or participation in road traffic as contemplated in section 34, the business and financial plan must, in respect of every road traffic-related asset or service, specify— |
| (a) | the nature of the investment or services to be procured; |
| (b) | the transfer actions contemplated in section 34 to be undertaken in respect of such a road traffic asset or service; |
| (c) | the order of priority in which the actions referred to in paragraph (b) are to be undertaken; |
| (d) | the appropriate contract to be utilised for the actions referred to in paragraph (b); |
| (e) | whether the road traffic asset or service can be operated at a reasonable rate of return or whether such asset or service can only be provided in terms of a negative concession; |
| (f) | the nature and levels of essential public service obligations; |
| (g) | the potential for unbundling road traffic services or bundling road traffic services with each other or with other transport or non-transport related services; and |
| (h) | the period within which any actions in terms of paragraph (b) must be completed. |
| (8) | The Minister and each MEC serving on the Shareholders Committee must cause copies of the approved business and financial plan to be tabled in Parliament and every provincial legislature, as the case may be, within 14 days of receipt of that plan or, if Parliament or the provincial legislature concerned is not then in session, within 14 days after commencement of its next ensuing session. |
| (9) | Failure by the Corporation to comply with any provision of the business and financial plan does not affect the validity or enforceability of any agreement, right, obligation or liability entered into, acquired or incurred by the Corporation. |
