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.