PROCEDURES TO BE FOLLOWED BY PUBLIC ENTITIES TO INVEST SURPLUS CASH WITH THE CORPORATION FOR PUBLIC DEPOSITS

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2 PROCEDURES TO BE FOLLOWED BY PUBLIC ENTITIES TO INVEST SURPLUS CASH WITH THE CORPORATION FOR PUBLIC DEPOSITS 1. Introduction 1.1 Although schedule 3(a) and 3(c) public entities are from 1 April 2003 not obliged to invest their surplus cash with the Corporation for Public Deposits, entities may consider to invest with the Corporation due to the following: - All money invested with the Corporation is fully backed by the South African Reserve Bank and therefore the entities counterparty or credit risk is limited to the liquidity buffer the entities will keep with commercial banks; and Entities do not have to build the capacity to invest their surplus cash optimally as the Corporation will be doing investments on their behalf. 1.2 The entities will open accounts with the Corporation. Entities will have the sole mandate to transact on their accounts. 1.3 All money deposited in these accounts will be available on demand or on such terms as may be arranged by the entities and the Corporation. 1.4 The Corporation will invest the money from entities according to an investment policy approved by the Board of the Corporation. 1.5 Market related interest would be paid on deposits. 2. Opening of Accounts 2.1 Each entity will make a written application to the Corporation to open an account. Such an application must be signed in accordance with each entity s signing protocols. 2.2 The letter of application should be accompanied by forms F277 as well as the contact details of the specified authorised signatories. Ten specimen signatures of each authorised signatory should be provided on a form F280 and on the white labels provided by the Corporation. The original letter of application and the original forms of the Corporation should be sent to the Manager of the Corporation. 2.3 Particulars of the bank account at the commercial bank to which money will be transferred by the entity must accompany the application. These should include the bank, the account number, the account name, as well as the branch where the account is held. A letter of confirmation from the bank confirming the bank details should also be included. The same procedure is applicable when the entities bank details change.

3 3. Transfer of money and security controls 3.1 The Corporation is in the process of setting up an electronic banking facility for entities to electronically transfer money from their accounts at the Corporation to their commercial bank accounts. 3.2 In the mean time a manual process will be used. The form MP400 of the Corporation must be completed to transfer money from the entities accounts at the Corporation. Two persons authorised to sign the MP400 form, as specified on the F277 form, should sign the form to validate and authorise the transfer. The form MP400 must reach the offices of the Corporation in Pretoria or any branch of the South African Reserve Bank by twelve hours mid-day of the value date of the transaction. 4. Bank Statements 4.1 Details of transactions captured by the Corporation as well as interest earned, will be reflected on the account statements. 4.2 Bank statements will be provided to the authorised recipient specified by the entity on form F282 of the Corporation. 5. Contact Details 5.1 For further details the Manager of the Corporation may be contacted. 5.2 The following contact details can be of use: Position Name Contact Details Manager: Corporation for Public Deposits Accountant: SARB Banking Services Philip Franken Lucky Mahlake philip.franken@resbank.co.za Lucky.Mahlake@resbank.co.za SARB Banking Services Administration Kedibone Khoza Julie Somers Vanessa Lotz Fax

4 Appendix A Example of an application letter to open an account with the CPD Letter Head The Manager Corporation for Public Deposits South African Reserve Bank Pretoria 0001 RE: OPENING OF BANK ACCOUNT AT THE CPD You are hereby authorised to open a bank account for to invest money. Forms F277 and F280 providing the names and signatures of the authorised signatories, commercial bank account number to which money will be transferred and contact details are attached. Please provide me with the bank account number. Yours sincerely Head of Department

5 Form 1: Form 277 front page

6 Form 2: Form back page

7 Form 3: Form 280

8 Form 4: MP400

9 Appendix B Example of an application letter to authorise persons to request and receive bank statements Letter Head The Manager Banking Services South African Reserve Bank Pretoria 0001 RE: AUTHORISED PERSONS TO OBTAIN BANK STATEMENTS Form F282 providing the names of the persons authorised to request and receive bank statements are attached. Bank statements should be forwarded to facsimile no. ( ) for attention You will be notified in writing in the event of the above recipient details changing. Yours sincerely Head of Department

10 Form 5: Form F282 - front page

11 Form 6: Form F282 - back page