Backlash over new SOE ownership policy

The proposed new state-owned enterprise (SOE) ownership policy, based on Malaysia’s hybrid model, has received much backlash, with critics saying the government should focus on meritocracy when appointing parastatal heads and boards.

This model was put on the table by former minister of public enterprises Leon Jooste and received Cabinet backing with the aim of improving the performance of the country’s parastatals.

The backlash comes after the minister of finance and public enterprises, Iipumbu Shiimi, earlier this week emphasised the need to implement the public enterprises ownership policy, which, if approved, would see a ‘mother’ company created to run the country’s parastatals with an asset base of N$119 billion.

“Considering the above and also taking into consideration the recommendations by the High-Level Panel on the Namibian Economy (HLPNE) as adopted by the Cabinet, it is more than critical to expedite the implementation of this policy.

“It’s known the performance of a number of our public enterprises is mediocre, and service delivery is ineffective, and that affects our national competitiveness negatively, while being an enormous drain on the fiscus at a time when the country is experiencing economic difficulties,” Shiimi said.

He believes the proposed ownership policy provides the public and private sectors with a clear understanding of the state’s overall objectives and priorities as a shareholder of SOEs.

Despite Shiimi’s belief that the new SOE ownership structure could be the silver bullet needed to inject life into the country’s parastatals, critics remain adamant the plan would not work.

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