12.     Borrowing powers of Commission

            (1) Subject to the provisions of this section, the Commission may borrow sums required by it for meeting any of its obligations or for the purpose of its business.

            (2) Subject to the provisions of subsection (4), the power of the Commission to borrow shall be exercisable only with the prior approval of the Minister as to the amount and the sources of the borrowing and as to the terms on which the borrowing may be effected.

            (3) An approval given in any respect for the purposes of subsection (2) may be either general or limited to a particular borrowing or otherwise, and may be either unconditional or subject to conditions.

            (4) Nothing in subsection (2) shall apply to the borrowing of sums by way of bank overdraft provided that such sums are not, except with the prior approval of the Minister acting in accordance with the advice of the Minister for the time being responsible for finance, secured by any charge on the immovable property of the Commission.

            (5) The Minister may guarantee, in such manner and on such conditions as he thinks fit, the repayment of the principal of, and the payment of the interest and other charges on, any borrowings of the Commission under this section, and any sums required for the fulfilment of any such guarantee shall be charged on and paid out of the Consolidated Fund.

            (6) As soon as practicable after any guarantee is given under subsection (5), the Minister shall lay a statement of such guarantee before the National Assembly.

13.     Provision for redemption of loans

            The Commission shall in each financial year make proper provision for the redemption of loans.

14.     Charges to revenue account

            (1) The Commission shall charge to its revenue account all charges which in the normal conduct of business are regarded as proper to be made to revenue account (including, without prejudice to the generality of that expression, provision in pursuance of section 16 and in respect of income tax) and, in doing so, shall make in each financial year proper provision for-

     (a)     the depreciation or other diminution in value of assets; and

     (b)     the payment of interest on and all other charges and expenses incurred in connection with loans and such amounts as are required in each year for redemption of loans in pursuance of section 13.

            (2) In charging to its revenue account all charges which in the normal conduct of business are regarded as proper to be made to revenue account as is provided in subsection (1), the Commission may also in each financial year make reasonable provision for meeting, in whole or in part, increases in the cost of replacing assets.

15.     Stabilization Reserve

            (1) The Commission shall establish a Stabilization Reserve into which the Commission shall pay such amounts as, subject to the provisions of subsection (3), it may consider reasonably necessary for the purposes of the Reserve.

            (2) Moneys in the Stabilization Reserve shall, subject to the provisions of section 19, not be used except to stabilize the price at which livestock are purchased by the Commission or for such other purposes as the Commission may from time to time determine with the approval of the Minister.

            (3) Moneys in the Stabilization Reserve shall not at any time exceed the sum of P15,000,000 or such higher sum as the Minister may by order from time to time approve.

16.     Development Reserve

            (1) The Commission shall establish a Development Reserve to which the Commission shall appropriate such amounts as it may consider reasonably necessary for the purposes of the Reserve:

            Provided that the Commission shall not in any financial year appropriate to the Development Reserve an amount exceeding P2 for every head of cattle purchased by the Commission during that year.

            (2) Subject to the provisions of section 9(4), the Development Reserve may be used by the Commission for such capital expenditure as the Commission may determine.

17.     Balancing of revenue account

            It shall be the duty of the Commission so to exercise its functions and conduct its business as to ensure, taking one year with another, that its revenues are sufficient to enable the Commission to meet the outgoings of the Commission properly chargeable to revenue account in terms of section 14 and to make the provision which the Commission is required to make in terms of sections 15 and 16.

18.     Surplus revenues

            If in any financial year the revenues of the Commission, together with any surplus revenue brought forward from any preceding financial year, exceed the sums required by the Commission to meet the outgoings thereof properly chargeable to revenue account in terms of section 14 and to make the provision which the Commission is required to make in terms of sections 15 and 16, the Commission shall pay the whole of such excess, less any sums reasonably considered by the Commission to be necessary for the purpose of discharging its obligations under section 17 in any succeeding financial year, to the persons who supplied livestock to the Commission during that financial year in accordance with some equitable scheme of division.

19.     Meeting of deficiencies

            If in any financial year the revenues of the Commission, together with any surplus revenue brought forward from any preceding financial year, are insufficient to enable the Commission to meet the outgoings thereof properly chargeable to revenue account in terms of section 14, the deficiency shall, except as the Commission may otherwise determine with the approval of the Minister, be met from the Stabilization Reserve, or, if the moneys in the Stabilization Reserve are insufficient for meeting the whole of the deficiency, then, to the extent of the shortfall, from the Development Reserve.

20.     Accounts and audit

            (1) The Commission shall keep proper accounts and other records in relation thereto, and shall prepare in respect of each financial year a statement of accounts showing in detail the assets, liabilities, revenue and expenditure of the Commission, in a form which shall conform with the best commercial standards.

            (2) The accounts of the Commission in respect of each financial year shall be audited by auditors to be appointed by the Commission:

            Provided that no person shall be qualified to be so appointed unless he holds one or more of the qualifications referred to in section 128(1) of the Companies Act.

            (3) It shall be the duty of the auditors to report in respect of the accounts for each financial year whether or not-

     (a)     they have received all the information and explanations which, to the best of their knowledge and belief were necessary for the performance of their duties as auditors;

     (b)     the accounts and related records of the Commission have been properly kept;

     (c)     the Commission has complied with all the provisions of this Part with which it is the duty of the Commission to comply; and

     (d)     the statement of accounts prepared by the Commission presents a true and fair view of the financial position of the Commission according to the information and explanations given and the accounts and records produced to them.