Post by sarderia on May 2, 2020 3:47:55 GMT
Sovereign Wealth Fund Act
Author: Jakob Rutgers Maurits van der Hegel (NVP)
Sponsor: Yang Kang (DP), Jan van der Stel (NVP)
An act to create a Sovereign Wealth Fund as an investment avenue for the Bandurian Government
BE IT THEREFORE ENACTED, as follows:
§1 - Sovereign Wealth Fund
- The Government of Banduria shall estabilish an independent and non-partisan Sovereign Wealth Fund.
- The purpose of this Sovereign Wealth Fund shall be to:
- Advance, manage, and support the economic investments made by the Bandurian Government.
- Secure stable investments and assets for the Sovereign Wealth Fund corporation.
- Provide the income and outcome of foreign exchange reserves for the Bandurian Government.
- Offer assistance of funding to Bandurian Government social security programs.
- Provide financial stability and bail-outs for Bandurian major economic corporations in time of recession.
- Ensure the long-term growth of the capital.
§2 - Funding
- The Sovereign Wealth Fund corporation of the Bandurian Government shall be allocated a starting capital of no less than 1 to 2 per cent of the Gross Domestic Product.
- A minimum of five per cent of the Bandurian Government's yearly national budget shall be allocated to fund and manage the Sovereign Wealth Fund.
- All natural resources of Banduria, that is managed by Bandurian Government agencies, including but not limited to: mineral reserves, exclusive economic zone, and others, shall be used as the underlying for the Sovereign Wealth Fund's initial assets.
- None of the aforementioned assets in Section 2.3 shall be used or sold to government and private corporations without consent of the Sovereign Wealth Fund governing board and the Ministry of Finance.
- The Sovereign Wealth Fund shall return all the dividents it has received from its investments to the Ministry of Finance.
- The Sovereign Wealth Fund shall be able and participate to fund partially or wholly, all Bandurian Government social programs.
- In case of investment devaluation or loss, the Sovereign Wealth Fund is eligible to receive assistance from the Bandurian Government.
§3 - Purposes and Operations
- The Sovereign Wealth Fund's purposes is as outlined in Section 1.2 of the Act.
- The Sovereign Wealth Fund shall use the capital it receives from the Bandurian Government to invest exclusively in foreign nations.
- Preferrence shall be given to invest in developeing countries.
- The types of investments that shall be prioritized by the Sovereign Wealth Fund includes, but not limited to; agriculture and plantation, mining and natural resources, real estate, property and land, infrastructure and development, information and technology, manufacturing and engineering.
- Equities and non-equities assets and investments of the Sovereign Wealth Fund shall be balanced by a ratio of 8:2 respectively.
- The Sovereign Wealth Fund shall partner with Bandurian private corporations to provide investment and development project opportunities worldwide.
- The Sovereign Wealth Fund's revenues from devidents, investments, and other sources shall be transferred to the Ministry of Finance and the national wealth reserves.
§4 - Governance
- The Sovereign Wealth Fund shall take the form of a state-owned company.
- The funding and capital for the Sovereign Wealth Fund must come 100 per cent from the Bandurian Government through its ministries and agencies.
- No private interference or ownership of the Sovereign Wealth Fund is permitted.
- A board of directors shall be formed to manage the Sovereign Wealth Fund's operations.
- A board of commissioners shall be formed to supervise the Sovereign Wealth Fund's operations as managed by the board of directors.
- The Minister of Finance and the President of Banduria retains the right to appoint directors with permission from the Parliament.
- The Parliament solely retains the right to appoint commissioners of the Sovereign Wealth Fund.
- Officers of the Sovereign Wealth Fund, directors and commissioners including, must be non-partisan, do not have a relationship with a private company, be from a respected economic background, honest and able.
- An extraordinary general shareholder's meeting is conducted by the Ministry of Finance, the President and the Parliament to select the Sovereign Wealth Fund's officers every five years or as needed.
- The embezzlement of funds or assets, corruption, collusion of the Sovereign Wealth Fund's officers with private companies or individuals, or any kind of nepotism is strictly prohibited.
- Crimes related to the offences outlined in section 3.10 is considered treason against the State; it shall be punished with a minimum of 10 years of prison time; life sentences are applicable if supported by enough proofs and shall be decided according to jurisprudence.
