GOVERNMENT DECIDES ON PUBLIC INSTITUTION REFORM  ACTION PLAN

The Ministry of Strategy and Finance announced the action plan to effectively carry out the Public Institution Reform Measures unveiled on December 11 at the 16th Public Institution Management Committee Meeting, which was held on December 31. 

Debt Reduction


Public institutions are obliged to submit their own debt reduction plans drawn up according to the guidelines by the end of January*.  The ministry will form debt reduction support teams composed of government officials and financial experts. 

* Public institutions warned about careless management have to submit management reform plans along with debt reduction plans.

Careless Management

The government announced guidelines to correct eight cases of careless management, and public institutions are obliged to submit their own management reform plans drawn up according to the guidelines by the end of January.  The ministry will form management reform support teams composed of government officials and human resources management experts.  The teams will examine the management reform plans of their associated public institutions. 

Management Performance Evaluation

Public institutions' management performance will be evaluated in the third quarter of 2014.  A total of 38 public institutions will be evaluated: 18 institutions with a focus on debt reduction and 20 institutions with a focus on efficient management.  The Ministry of Strategy and Finance will develop evaluation guidelines, and will form an evaluation team as early as possible.  The members of the evaluation team will have to meet high ethics standards, for the evaluation team may have to deliberate on the dismissal of carelessly managed public institutions' heads. 

Others

The government will draw up guidelines for pilot adoption of the project-based accounting system, and will adopt a public institution project performance evaluation system.  The Ministry of Strategy and Finance will apply strict standards to the issuance of public institution bonds, and will prepare related legal bills in the first half of 2014.

Information on public institution debt burdens and management performance will be made accessible to the public via the government public information portal, Alio.

Please refer to the attached PDF.

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