Canada - Crown Investments Corporation of Saskatchewan (CIC) 

The Crown Investments Corporation of Saskatchewan (CIC) is the financially self-sufficient holding company for 11 subsidiary commercial Crown corporations.

CIC's main duties are to:

• establish the strategic direction for subsidiary Crown corporations through effective governance and performance management; and
• enhance Saskatchewan's long term economic growth and diversification through Crown corporations.

CIC also provides Corporate Secretariat support to subsidiary Boards of Directors.

Background 

CIC has been in existence in one form or another for more than 50 years.  The corporation was established in 1947 as the Government Finance Office (GFO). Its mandate was to act as a holding company for many of the province's Crown corporations and to be a mechanism for developing broad policy control, directing investment, and routing dividends into the government's consolidated fund. Crowns received their financing through advances from the GFO, and any profits they made were returned. The profit pool held by the GFO was then either reinvested in other Crowns or paid as a dividend to the provincial government.

In 1978, a new Crown Corporations Act renamed the GFO to Crown Investments Corporation of Saskatchewan. The Crown Corporations Act, 1993, is the current governing legislation.

Structure 

CIC's organization consists of approximately 70 full time staff.  CIC's corporate structure consists of the following divisions:  President's Office (with Communications, Human Resources and General Counsel); Strategy and Governance (Policy and Strategic Planning functions); Finance and Administration; Economic Initiatives (Investment Development); Labour and Aboriginal Initiatives (Sector Wide Human Resources Policy and Coordination); and Capital Pension and Benefits Administration (Pension and Group Benefits Service Provider).

CIC management reports to the CIC Board of Directors.  The Board of Directors of CIC is comprised exclusively of provincial government Cabinet Ministers.  For financial and annual reporting purposes, CIC also reports to a committee of the Legislative Assembly called the "Crown and Central Agencies Committee".

Portfolio of Crown corporations

CIC's subsidiary Crown corporations are governed by their own Boards, comprised of private citizens.  CIC's subsidiaries include:

• SaskPower (electricity generation, transmission and distribution)
• SaskTel (telecommunications)
• SaskEnergy (natural gas transmission and distribution)
• Saskatchewan Government Insurance (auto insurance manager and general insurance provider)
• Saskatchewan Transportation Company (provincial bus passenger service provider)
• Information Services Corporation (Land and Property Registration)
• SaskWater (Water supply services)
• Saskatchewan Government Growth Fund (immigrant investment fund manager)
• Investment Saskatchewan Inc. (venture capital company)
• Saskatchewan Opportunities Corporation (research park developer and manager)

SaskTel is our oldest subsidiary (established in 1907).  SaskPower is our largest subsidiary.  Together SaskPower and SaskTel typically provide 80% of the dividends CIC is able to declare each year.  The Information Services Corporation is our newest subsidiary.  ISC started business in January 2000.

CIC is also an investment manager with holdings in heavy oil refining.

In 2003, CIC had consolidated assets of $8.1 billion, debt of $3.4 billion, revenue of $4.1 billion, a return on equity of 9.6% and provided a dividend of $268 million to the province's General Revenue Fund.

Accountability and disclosure 

In terms of our accountability framework, CIC reports to a CIC Board of Directors comprised of Cabinet Ministers.  Ultimately we are accountable to the people of the province through the Legislative Assembly.

CIC has a mandate to oversee Crown sector strategic direction and performance management.  CIC also provides Corporate Secretariat support to subsidiary Boards of Directors.  The Saskatchewan governance model for overseeing Crown corporations is unique in Canada, but has been in place in the province since the 1940's.

The CIC Annual Report provides the public with a detailed overview of the structure, activity and performance of Crown sector corporations.  Audited financial statements outlined in the CIC Annual Report include statements for each of CIC (consolidated) and CIC (the legal entity).  CIC's level of disclosure goes beyond that required by the Ontario Securities Commission.  An Audit Committee of the Board annually reviews the financial statements.

For more information, please visit:  http://www.gov.sk.ca/ and http://www.cicorp.sk.ca/.