24.09.2004

Editorial: Parastatals Are Not State's Playthings

IT'S BEEN an oft-repeated request on our part, but Government really does need to stop using the parastatals or State-owned enterprises, SOEs as they are known, as their personal playthings.

The fact that they are, in the first place, Government-owned, does

mean that Government has a role and function especially in regard

to the smooth running of these institutions, and it must be

emphasised they are not therefore, independent from Government.

But Government, when it does intervene in the affairs of any of

the SOEs, should do so for the right reasons.

 

If they don't follow this advice, they can be accused of

interfering and meddling for spurious political and other reasons,

and this is not conducive to confidence, nor is it positive for the

development of our country.

 

There have been a number of examples of late, where Government

has done just that - meddled in the affairs of parastatals for the

wrong reasons.

 

The Agribank saga is a case in point.

 

In this instance Minister of Finance Saara Kuugongelwa Amadhila

fired the board because they refused to appoint a person not

suitably qualified for the post of Chief Executive Officer.

 

The person the Minister wanted for the post in question was

Deputy Lands Minister, Isack Katali.

 

This was just one example of blatant interference and meddling

in the affairs of a parastatal.

 

In a similar incident, the Roads Authority board faced the axe

from Works, Transport and Communications Minister, Moses Amweelo,

ostensibly because they refused to adhere to Government rules and

regulations on the employment of foreigners at the parastatal.

 

Then of course, there is the slightly more controversial case of

the likely dismissal of Nored CEO, Martin Heita, ostensibly for

'criticising the President'.

 

Combined, these incidents only serve to fuel uncertainty and

hesitant management of these parastatals because factors other than

the smooth running of them, seems to play a role in the dismissal

of boards and-or CEOs.

 

Constant changes in management at many of the parastatals is

also not conducive to good performance of the SOE in particular, or

the stability and motivation of staff in general.

 

Not spoken about openly, but still probably key to the political

interference by Government in the top management of various SOEs,

is the question of 'jobs for comrades'.

 

With elections just in sight, many have been critical of the

fact that the ruling party is rewarding some, while ensuring that

others, who may have aligned themselves with Swapo leaders who have

now fallen from favour, are excluded or omitted from vying for

positions or posts.

 

This is truly unacceptable.

 

Our parastatals could be important revenue-generating

institutions for the country.

 

However, apart from certain key exceptions which have known

stable and consistent management and lack of interference, most of

them simply can't get on with the job.

 

We reiterate that it is important that Government oversee proper

financial management of the SOEs because it is in the interests of

the country and its people, and it must continue to take action (as

has been done on a few occasions) against those CEOs and top

officials who abuse their posts; but they must refrain immediately

from meddling for personal political reasons.

 

But Government, when it does intervene in the affairs of any of the

SOEs, should do so for the right reasons.If they don't follow this

advice, they can be accused of interfering and meddling for

spurious political and other reasons, and this is not conducive to

confidence, nor is it positive for the development of our

country.There have been a number of examples of late, where

Government has done just that - meddled in the affairs of

parastatals for the wrong reasons.The Agribank saga is a case in

point.In this instance Minister of Finance Saara Kuugongelwa

Amadhila fired the board because they refused to appoint a person

not suitably qualified for the post of Chief Executive Officer.The

person the Minister wanted for the post in question was Deputy

Lands Minister, Isack Katali.This was just one example of blatant

interference and meddling in the affairs of a parastatal.In a

similar incident, the Roads Authority board faced the axe from

Works, Transport and Communications Minister, Moses Amweelo,

ostensibly because they refused to adhere to Government rules and

regulations on the employment of foreigners at the parastatal.Then

of course, there is the slightly more controversial case of the

likely dismissal of Nored CEO, Martin Heita, ostensibly for

'criticising the President'.Combined, these incidents only serve to

fuel uncertainty and hesitant management of these parastatals

because factors other than the smooth running of them, seems to

play a role in the dismissal of boards and-or CEOs.Constant changes

in management at many of the parastatals is also not conducive to

good performance of the SOE in particular, or the stability and

motivation of staff in general.Not spoken about openly, but still

probably key to the political interference by Government in the top

management of various SOEs, is the question of 'jobs for

comrades'.With elections just in sight, many have been critical of

the fact that the ruling party is rewarding some, while ensuring

that others, who may have aligned themselves with Swapo leaders who

have now fallen from favour, are excluded or omitted from vying for

positions or posts.This is truly unacceptable.Our parastatals could

be important revenue-generating institutions for the

country.However, apart from certain key exceptions which have known

stable and consistent management and lack of interference, most of

them simply can't get on with the job.We reiterate that it is

important that Government oversee proper financial management of

the SOEs because it is in the interests of the country and its

people, and it must continue to take action (as has been done on a

few occasions) against those CEOs and top officials who abuse their

posts; but they must refrain immediately from meddling for personal

political reasons.