NUNW demands ‘no more bail-outs for parastatals’

THE National Union of Namibian Workers (NUNW) has lambasted Government’s continued “bail-out” of non-performing parastatals.

“It is unfortunate that such bail-outs go towards loan servicing and salaries for top bureaucrats who continue to pay themselves hefty amounts – even in the face of dismal performance by these corporations,” NUNW acting Secretary General Peter Naholo said in a media statement yesterday. “The NUNW wants to see money allocated to bail-outs to rather be geared towards expanding the base of the core functions of such entities (parastatals).”The country’s largest workers’ federation urged State-owned enterprises (SOEs) to live within their means and to avoid a situation where state funds have to be diverted to bail them out of their endless financial troubles.The union was reacting to this year’s Budget presented to parliament by the Minister of Finance last week, in which Air Namibia was allocated a staggering N$366 million.Naholo appealed to Government to start implementing performance-based management contracts for heads of parastatals: “In this way, the Government would be able to monitor the efficiency and performance of those that are entrusted with running these state companies.”The ruling party affiliated union generally welcomed the 2004-05 Budget and pointed out that the huge allocations to the education and health sector would help address social “back-logs” in Namibian society.Naholo said that education continued to receive the biggest slice of the budget.Hence the responsibility now lay with all stakeholders in the sector to translate the big allocation into tangible results.He urged both teachers and students to rededicate and commit themselves, “so that the nation derives value for such big allocations through zero tolerance for failure in education.”The union further noted that the allocation to the health sector should also enable Government to dedicate efforts and resources to the fight against the scourge of the HIV/Aids pandemic.”The NUNW wants to see money allocated to bail-outs to rather be geared towards expanding the base of the core functions of such entities (parastatals).”The country’s largest workers’ federation urged State-owned enterprises (SOEs) to live within their means and to avoid a situation where state funds have to be diverted to bail them out of their endless financial troubles.The union was reacting to this year’s Budget presented to parliament by the Minister of Finance last week, in which Air Namibia was allocated a staggering N$366 million.Naholo appealed to Government to start implementing performance-based management contracts for heads of parastatals: “In this way, the Government would be able to monitor the efficiency and performance of those that are entrusted with running these state companies.”The ruling party affiliated union generally welcomed the 2004-05 Budget and pointed out that the huge allocations to the education and health sector would help address social “back-logs” in Namibian society.Naholo said that education continued to receive the biggest slice of the budget.Hence the responsibility now lay with all stakeholders in the sector to translate the big allocation into tangible results.He urged both teachers and students to rededicate and commit themselves, “so that the nation derives value for such big allocations through zero tolerance for failure in education.”The union further noted that the allocation to the health sector should also enable Government to dedicate efforts and resources to the fight against the scourge of the HIV/Aids pandemic.