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Republic of Nauru Finance Corporation (Repeal) Bill 2009

REPUBLIC OF NAURU

REPUBLIC OF NAURU FINANCE CORPORATION (REPEAL) BILL 2009

Second Reading Speech
Hon Dr Kieren Keke MP, Minister for Finance
15 October 2009

Mr Speaker,

I have introduced to this House today a short Bill for an Act to repeal the Republic of Nauru Finance Corporation Act 1972-1998.

The Republic of Nauru Finance Corporation, known as "RONFIN", is a statutory corporation that was established in 1972 under the Republic of Nauru Finance Corporation Act 1972. The RONFIN Act was amended several times and the current citation of the short title of the Act is the Republic of Nauru Finance Corporation Act 1972-1998. RONFIN ceased to operate approximately 5 years ago, and no longer has any staff or Directors.

The object of this Bill is to officially abolish RONFIN by repealing the Republic of Nauru Finance Corporation Act 1972-1998. As RONFIN is a statutory corporation that is not subject to the provisions of the Corporation Act 1972, it is not necessary to undertake winding up procedures under that Act, but rather, the abolition of RONFIN can be effected by repealing the Act under which it was established.

The explanatory memorandum which accompanies the Bill explains the effect of each clause in the Bill. Clauses 1 and 2 cover the preliminary matters of short title, commencement and interpretation. Clause 3 would repeal the Republic of Nauru Finance Corporation Act 1972-1998, thereby abolishing RONFIN.

The Bill would vest any remaining RONFIN assets in the Republic, and would also enable the Republic to claim any outstanding debts owed to RONFIN by debtors. These provisions are contained in clause 4.

Clause 5 of the Bill would require the Director of Audit, within one year of the Act coming into effect, to endeavour to conduct a final audit of the accounts of RONFIN. If the Director of Audit is unable to obtain sufficient records or information to undertake such audit, then he would be required to report on his efforts and provide whatever information he was able to obtain. The Report of the Director of Audit would be submitted to the President for tabling in Parliament.

Mr Speaker, this Bill is really just a straightforward administrative matter of tidying up the law to reflect the present reality that RONFIN is now defunct.

Mr Speaker, I commend this Bill to the House.

Thank-you.