TELECOMMUNICATIONS (AMENDMENT) ACT 2006

REPUBLIC OF NAURU

(No. 11 of 2006)

ARRANGEMENT OF SECTIONS

Section

1. Short Title
2. Principal Act
3. Amendment of Principal Act

Section 21 - Funds of RONTEL
Section 23 - Application of RONTEL Fund
Section 24 - Surplus of Funds
Section 25 - Accounts of RONTEL Fund
Section 26 - Annual Budget
Section 27 – Audit
Section 28 – Reports
________

AN ACT

To provide for the financial management and control of RONTEL by the Department of Finance and for the creation of the RONTEL Fund.

(Certified: 29th December 2006)

BE IT ENACTED by the Parliament of Nauru:

1. SHORT TITLE

This Act is the Telecommunications (Amendment) Act 2006.

2. PRINCIPAL ACT

In this Act the Telecommunications Act 2002 is referred to as the Principal Act.

3. AMENDMENT OF PRINCIPAL ACT

(l) For Section 21 of the principal Act, substitute–

'Funds of RONTEL

21(I) The revenues of RONTEL consist of–

(a) moneys appropriated by Act from time to time for the purposes of RONTEL; and

(b) moneys received by or on behalf of RONTEL for goods or services provided by RONTEL; and

(c) revenues or other moneys payable to the Republic by any other state, any international, regional or sub-regional organisation or body, or any other person in respect of the establishment, maintenance and operation of telecommunications services; and

(d) grants, bequests, gifts or other similar subscriptions made payable to RONTEL or the Republic in respect of the establishment, maintenance and operation of telecommunications services; and

(e) interest earned on loans or investments made by or for RONTEL; and

(f) moneys derived from the disposal of, or dealing with, real or personal property vested in or acquired by RONTEL, in accordance with this Act or any other law; and 

(g) moneys borrowed by or for the benefit of RONTEL; and

(h) any other moneys received by or made payable to RONTEL under any law and in the exercise and performance of its powers and functions.

(2) Any revenues and other moneys raised or received by or on behalf of RONTEL and shall be paid into and form a fund to be known as the RONTEL Fund.

(II) For Sections 23 to 28, inclusive, of the principal Act, substitute-

'Application of RONTEL Fund

23. Moneys in the RONTEL Fund shall be applied for-

(a) the payment of remunerations and allowances payable under this Act; and

(b) the payment of discharge of any other expenses, charges, fees, subscriptions and obligations incurred or undertaken by or for the benefit of RONTEL; and

(c) the payment of interest and principal on borrowings of or for the benefit of RONTEL; and

(d) any other payments which are required or permitted to be made under this Act or any other law.

Surplus of Funds

24. (1) Any surplus at the end of any financial year in the RONTEL Fund and not reasonably required in accordance with internationally accepted accounting principles consistently applied for meeting RONTEL's obligations and performing its functions under this Act or another law shall be applied as follows:

(a) 45% as payment to the Republic;

(b) 40% to an account called the Development and Capital Works Fund established within the RONTEL Fund; and

(c) 15% to a contingencies fund, to allay or ameliorate disasters and emergencies to be established with the RONTEL Fund.

(2) The funds referred to in subsections 1(b) and 1(c) shall be invested in such interest-bearing accounts at a bank or lending institution as are approved by the Minister.

Accounts of RONTEL Fund

25. (1) The Secretary for Finance shall manage RONTEL's finances and keep proper books of accounts and records in accordance with internationally accepted accounting principles consistently applied and shall ensure as far as possible that its revenue is sufficient to meet its expenditures properly chargeable to revenue.

(2) The Secretary for Finance shall cause to be opened and maintained such bank accounts, with a bank or banks approved by the Minister for purpose, as are necessary for the exercise and performance of its powers and functions, and shall pay into them all moneys received by or on behalf of RONTEL into the RONTEL Fund in the exercise and performance of its powers and functions.

(3) Notwithstanding subsection (2), in respect of money advanced or borrowed under this Act for the purposes of RONTEL, the Secretary for Finance shall maintain a separate account within the RONTEL Fund in respect of the money that is related to each purpose, and shall cause proper entries of all moneys so advanced or borrowed for a particular purpose of RONTEL to be made in the account maintained in respect of the purpose.

(4) All cheques, promissory notes, drafts, bills or exchange and other negotiable instruments made or drawn on behalf of RONTEL shall be signed, drawn, accepted, endorsed or otherwise executed, as the case may be, as prescribed, or until such time as regulations are made, by or with the authority of the Secretary for Finance.

(5) All receipts for money paid to or received by RONTEL shall be signed and executed in such manner as the Secretary for Finance determines from time to time.

Annual Budget

26. (1) RONTEL shall in consultation with the Secretary for Finance prepare and submit to the Minister not less than one month before the date of commencement of each financial year a budget of the estimates of revenue and expenditure and the planned operations of RONTEL for that year.

(2) Within fourteen days of receiving a budget under subsection (1) the Minister shall lay it before the Cabinet for consideration.

(3) The Cabinet may approve or reject the budget.

(4) An approval under subsection (3) may be given with such directions as to variations as the Cabinet sees fit.

(5) Where the Cabinet has rejected a budget or directed a variation, the Secretary for Finance shall revise the budget in accordance with any directions of the Cabinet and resubmit it through the Minister to the Cabinet.

(6) Where during any financial year the Board or the Secretary to Finance considers that the budget or part of it cannot be met or should not be undertaken or should be changed, the Secretary, after consultation with the Board, shall submit to the Minister a revised budget.

(7) A revised budget under subsection (6) shall be subject to approval by the Cabinet, which may approve it either without variation or with such variations as the Cabinet may direct.

(8) Where the Cabinet has directed a variation under subsection (7), the Secretary for Finance shall revise the budget in accordance with any directions of the Cabinet and resubmit it through the Minister to the Cabinet.

Audit

27. The accounts of the RONTEL Fund shall be subject to inspection and audit by the Director of Audit in accordance with the Audit Act 1973.

Reports

28. (1) The Secretary for Finance shall on or before the twenty-fifth day of March, June, September and December of each year, submit to the Minister–

(a) a balance sheet;

(b) the profit and loss account; and

(c) the source and application of fund statement;

for the preceding quarter, together with the report comparing the results achieved by RONTEL up to the end of that quarter with the corresponding information in the budget and projected accounts for that financial year submitted under Section 26.

(2) RONTEL shall, as soon as possible after 1 July in each year, furnish to the Minister a report on the progress and the performance of RONTEL in relation to its functions for that preceding financial year ending 30 June.

(3) A report under this Section shall include financial statements comparing the results achieved by RONTEL with the corresponding information in the budget and the projected accounts for that financial year, and the corresponding results achieved for the previous financial year.

(4) As soon as practicable after receiving the report referred to in subsection (2), the Minister shall cause it to be laid before Parliament.

(5) RONTEL shall furnish to the Minister such other or additional information relating to its performance, operations and proposed operations as the Board considers appropriate or as the Minister from time to time requires.'

(III) Section 22 of the principal Act is repealed.

I hereby certify that the above is a fair print of a Bill for an Act entitled Telecommunications (Amendment) Act 2006, has been passed by Parliament of Nauru and is now presented to the Speaker for his Certificate under Article 47 of the Constitution.

……………………
Clerk of Parliament 
29th December 2006

Pursuant to Article 47 of the Constitution, I, VALDON K. DOWIYOGO, Speaker of Parliament, hereby certify that the Telecommunications (Amendment) Act, 2006 has been passed by Parliament of Nauru.

……………………
Speaker
29th December 2006

___________________