Management: How, Why Public Establishments Are Classified

In a recent decision of the Minister of Finance, some Cameroonian public establishments have been classified in application of Article 11 of 2019 Decree.

Public establishments in Cameroon have been classified into five categories to go by a recent decision of the Minister of Finance. The decision published on May 4, 2020 is in pursuant to Article 11 of Decree No.2019/322 of 19 June 2019 fixing categories of public establishments, remuneration, indemnities and advantages of the President of Board of Directors, Director-Generals and Deputy Director-Generals of these public establishments. The MINFI decision classifying public establishments as per Article 5 of the June 19, 2019 Decree is guided by Article 4 of the same instrument which states that “public establishments shall be classified on the function of their realised average budget within the last three fiscal years. It therefore goes without saying that these public entities are categorised based on their performance. It is also important to note that the classification done by the Ministry of Finance is not by any means attributing monthly salaries to managers of these institutions as widely relayed by private news organs and the social media but rather paving the way for the application of the 2019 decree by the finance services of the various establishments. This is because the decree spells out the category of various public establishments which is subject to the remuneration, indemnities and advantages of their managers. In a nutshell, the monthly salaries or allowances accorded the Board chair persons, Director-Generals and Deputy Director-Generals depends on which category the institution they manage fall. The legal instrument does not only spell out the basic monthly salaries and allowances for the managers but also defines their indemnities and advantages and mission allowances. According to the latest classification of some 74 public establishments in Cameroon, two, notably; the National Social Insurance Fund (NSIF) and the Special Council Support Fund (FEICOM) fall under the first category while the Hydrocarbons Price Stabilization Fund (CSPH) is the lone establishment under the second category. Cameroon Radio and Television (CRTV), Telecommunications Regulatory Board, Cameroon Civil Aviation Authority and three others are in the 3rd category. 12 other public establishments amongst them the Chantal Biya International Reference Centre, National Agency of Information and Communications Technologies (ANTIC) amongst others are placed on the 4th category while the bulk (54) public establishments are in the 5th category. Article 6 of the June 2019 decree relating to the categorisation of public establishments, remuneration, indemnities and advantages for the top management of these entities defines the criteria used in categorising the establishments. Public entities with an average annual budget realised within the last three fiscal years stands over FCFA 100 million. Second category public establishments should have an average annual budget of above FCFA 50 billion and less than FCFA 100 million. For the third category, their annual budget within the three years must be more than FCFA 10 billion and less than FCFA 50 billion while the 4th category should pride themselves with a realised budget of over FCFA 5 billion and less than FCFA 10 billion. The last category (5th) of public establishments are those with an annual realised budget of less than FCFA 5 billion within the last three fiscal years. The decree makes it clear in its Article 11 (2) that all newly created public establishments automatically fall under the 5th category.

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