NEWS - NAMIBIA
| 2013-07-30Geingob changes SOE categories
Shinovene Immanuel
THE categories into which various State-Owned Enterprises (SOEs) were classified and put seals on the salaries of their heads were recently changed by the Prime Minister with some institutions totally removed from the list.
According to the latest government gazette, the State Owned Enterprises Governance Act of 2006 which was amended in May this year and was signed by Prime Minister Hage Geingob, has removed the Polytechnic of Namibia, the Government Institutions Pension Fund (GIPF), Namibian Broadcasting Corporation (NBC) and the University of Namibia from the SOE tiers to an unclassified category.
This means they are no longer subject salary seals for those heading the organisations.
The GIPF has in the past been rocked by allegations of corruption. The fund has, however, been consistent in announcing profits year after year.
Despite their recent announcement that they were close to break-even, NBC has also been in controversy over bail outs from government and the remuneration of its managers while the Polytechnic of Namibia, which has now been removed from the categories, is joined by fellow education institution Unam and GIPF who were previously in Tier 3.
In 2010, Cabinet approved a remuneration framework which divides SOEs into three categories: Tier 1, Tier 2 and Tier 3.
According to the regulations, a chief executive officer in Tier 1 should only earn between N$401 199 and a maximum of N$803 413 annually.
Tier 2 dictates that a CEO in that category should only earn between N$451 739 and N$987 197 annually.
If a parastatal falls under Tier 3 then it means it’s boss should earn a minimum of N$709 722 and a maximum of N$1 532 828.
Namibia Water Corporation and August 26 Holdings joined Tier 3 this year while the Namibia Financial Institutions Supervisory Authority joined the parastatals with top-earning bosses in the country in 2011.
Bosses from August 26 Holdings which falls under the Ministry of Defence have not been far from corruption controversies either.
Other parastatals in this highly paid category are Air Namibia, Namibia Port Authority, Namibia Post, Namibia Power Corporation, Roads Contractor Company, Telecom Namibia and TransNamib.
Polytechnic of Namibia, an institution led by Rector Tjama Tjivikua whose remuneration package has been in the spotlight and NBC were removed from Tier 2 to became unclassified.
Tjivikua’s remuneration package has been subject of discussion, as some argued that he was paid beyond set regulations.
The Rector says his package is not subject to the new SOE regulations.
Tier 2 however accommodates new entrants such as the Roads Funds Administration, the Communication Regulatory Authority of Namibia, Namibia Standards Institution and the National Youth Service.
The other parastatals in this category are: Agricultural Bank of Namibia, Development Bank of Namibia, Namibia Airports Company, Namibia Institute of Pathology, Namibia Wildlife Resorts and Namibia Housing Enterprise. Also in this category are the Motor Vehicle Fund, Roads Authority and the Social Security Commission.
Tier 1 also received new parastatals, namely the Lüderitz Waterfront Development Company, the Offshore Development Company (ODC), the Zambezi Waterfront, the Karakul Board of Namibia and the National Disability Council. Other parastatals in the category are: Namibia Agronomic Board, Namibia National Reinsurance Corporation, New Era Publication Corporation, Star Protection Service, Windhoek Machine Fabrik, Electricity Control Board, Meat Board of Namibia, National Council for Higher Education and the Namibia Qualifications Authority.
Also in this category are Namibia Special Risk Insurance Association, Namibia Tourism Board, Environmental Investment of Namibia, National Art Gallery of Namibia, Namibia College of Learning, National Heritage Council, Namibia Press Agency and the National Theatre of Namibia.
Former Prime Minister Nahas Angula last year said one of Geingob’s challenges would be dealing with the SOE’s, including massive salary discrepancies and enterprises that continue to operate in the red.
According to the latest government gazette, the State Owned Enterprises Governance Act of 2006 which was amended in May this year and was signed by Prime Minister Hage Geingob, has removed the Polytechnic of Namibia, the Government Institutions Pension Fund (GIPF), Namibian Broadcasting Corporation (NBC) and the University of Namibia from the SOE tiers to an unclassified category.
This means they are no longer subject salary seals for those heading the organisations.
The GIPF has in the past been rocked by allegations of corruption. The fund has, however, been consistent in announcing profits year after year.
Despite their recent announcement that they were close to break-even, NBC has also been in controversy over bail outs from government and the remuneration of its managers while the Polytechnic of Namibia, which has now been removed from the categories, is joined by fellow education institution Unam and GIPF who were previously in Tier 3.
In 2010, Cabinet approved a remuneration framework which divides SOEs into three categories: Tier 1, Tier 2 and Tier 3.
According to the regulations, a chief executive officer in Tier 1 should only earn between N$401 199 and a maximum of N$803 413 annually.
Tier 2 dictates that a CEO in that category should only earn between N$451 739 and N$987 197 annually.
If a parastatal falls under Tier 3 then it means it’s boss should earn a minimum of N$709 722 and a maximum of N$1 532 828.
Namibia Water Corporation and August 26 Holdings joined Tier 3 this year while the Namibia Financial Institutions Supervisory Authority joined the parastatals with top-earning bosses in the country in 2011.
Bosses from August 26 Holdings which falls under the Ministry of Defence have not been far from corruption controversies either.
Other parastatals in this highly paid category are Air Namibia, Namibia Port Authority, Namibia Post, Namibia Power Corporation, Roads Contractor Company, Telecom Namibia and TransNamib.
Polytechnic of Namibia, an institution led by Rector Tjama Tjivikua whose remuneration package has been in the spotlight and NBC were removed from Tier 2 to became unclassified.
Tjivikua’s remuneration package has been subject of discussion, as some argued that he was paid beyond set regulations.
The Rector says his package is not subject to the new SOE regulations.
Tier 2 however accommodates new entrants such as the Roads Funds Administration, the Communication Regulatory Authority of Namibia, Namibia Standards Institution and the National Youth Service.
The other parastatals in this category are: Agricultural Bank of Namibia, Development Bank of Namibia, Namibia Airports Company, Namibia Institute of Pathology, Namibia Wildlife Resorts and Namibia Housing Enterprise. Also in this category are the Motor Vehicle Fund, Roads Authority and the Social Security Commission.
Tier 1 also received new parastatals, namely the Lüderitz Waterfront Development Company, the Offshore Development Company (ODC), the Zambezi Waterfront, the Karakul Board of Namibia and the National Disability Council. Other parastatals in the category are: Namibia Agronomic Board, Namibia National Reinsurance Corporation, New Era Publication Corporation, Star Protection Service, Windhoek Machine Fabrik, Electricity Control Board, Meat Board of Namibia, National Council for Higher Education and the Namibia Qualifications Authority.
Also in this category are Namibia Special Risk Insurance Association, Namibia Tourism Board, Environmental Investment of Namibia, National Art Gallery of Namibia, Namibia College of Learning, National Heritage Council, Namibia Press Agency and the National Theatre of Namibia.
Former Prime Minister Nahas Angula last year said one of Geingob’s challenges would be dealing with the SOE’s, including massive salary discrepancies and enterprises that continue to operate in the red.
