Road Traffic Management Corporation Act, 1999 (Act No. 20 of 1999)Chapter 2 : Establishment and governance of Road Traffic Management Corporation9. Governance agreement with board |
| (1) | The Shareholders Committee must, after consultation with the Minister of Finance and every MEC responsible for finance, enter into a written governance agreement with the board relating to— |
| (a) | the expectations of national, provincial and local governments in respect of the Corporation’s scope of business, efficiency, financial performance and achievement of objectives; |
| (b) | the principles which the Corporation must apply for the purpose of business planning which includes the commitment to phase in private investment in road traffic and, where appropriate, contract out road traffic serviceto provincial authorities and local government bodies, the SAPS, any other statutory transport institution vested with the powers to execute road traffic functions and the private sector; |
| (c) | 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; |
| (d) | the procedures which the Corporation must follow in the awarding of tenders and granting of concessions; |
| (e) | key performance indicators in terms of which the Corporation’s performance will be evaluated; |
| (f) | the structure of the business and financial plan; |
| (g) | the level and scope of monitoring of the Corporation’s performance by the chief executive officer; and |
| (h) | any other matter relating to the performance of the Corporation’s functions in terms of this Act. |
| (2) | The Shareholders Committee and the board may, in terms of subsection (1), in writing amend the governance agreement from time to time. |
| (3) | The Shareholders Committee and the board must, before entering into the governance agreement or an amendment thereof, on any matter which may adversely affect them, consult with— |
| (a) | parties who have an interest in road traffic regulation, including, but not limited to, educational organisations and health organisations; and |
| (b) | persons to whom tenders or concessions contemplated in subsection (1)(d) have been awarded. |
| (4) | The Shareholders Committee must publish the governance agreement in the Gazette and every Provincial Gazette within 30 days from the date on which that governance agreement was entered into, and any amendment thereto must be so published within 30 days of that amendment coming into operation. |
| (5) | Any member of the public may inspect a copy of the governance agreement at the head office of the Corporation during business hours. |
| (6) | Failure by the board to comply with any provision of the governance agreement does not affect the validity or enforceability of any agreement, right, obligation or liability entered into, acquired or incurred by the Corporation. |