April 28, 2004
All significant new investments by Crown corporations must now be reviewed by an independent third party before being approved by the Crown Management Board and Cabinet.
"This policy applies to any new investment a Crown may want to make to generate revenue or to diversify, whether inside or outside of Saskatchewan. The policy does not apply to investments related to the Crown's core mandate," Crown Management Board Minister Pat Atkinson said. "For example, if a Crown wanted to enhance its basic utility infrastructure in Saskatchewan, that type of investment would be within its core mandate and would not require a third party review. A third party review would be required if it wanted to invest in a project inside or outside of Saskatchewan to generate revenue."
The Crown's board of directors will select the independent third party to conduct a review of a proposed investment. Should an investment be approved by Cabinet, the Crown will release as much detail about the review as possible to the public.
"We want to assure Saskatchewan people that the Crowns, Crown Management Board, and Cabinet have received independent third party advice to help us make informed decisions about proposed new investments," Atkinson said. "Our Crowns will continue to focus on their number one job of providing excellent service to Saskatchewan people. There may be times when investments outside their core mandate are warranted."
Investment Saskatchewan, which manages the investments formerly held by CIC Industrial Interests Inc., will be exempt from the policy because any new investments would be within its core mandate. These investments also need to be approved by its independent board of directors whose members have specific expertise in venture capital and other kinds of investments.
The policy takes effect immediately.
For More Information, Contact:
Phone: (306) 787-5889