Parastatal abuses hurting Namibia

SOME of Namibia’s parastatals have lost the ability to pay salaries and are draining Government resources, the Cabinet retreat at Swakopmund heard yesterday.

The operations of some of the close to 40 parastatals came under the spotlight during debate on economic growth and sustainable development. Finance Minister Saara Kuugongelwa-Amadhila told the highpowered gathering that many State-owned enterprises have become a liability to the State and that Government is unable to maintain them, as they divert much-needed funds.”Some parastatals have lost their ability to even pay salaries, and therefore need to be bailed out by Government.Such tendencies derail our resource allocation priority areas,” Kuugongelwa-Amadhila said.Director General of the National Planning Commission Helmut Angula said there were close to 40 State-owned enterprises with assets worth N$21 billion.”The question is whether we utilise them well.We must try and contain the room for abuse of resources,” Angula said.Angula presented a paper on economic growth and sustainable development to which Kuugongelwa-Amadhila was responding at the meeting.Five years ago Angula led a Cabinet team that did a survey on the salaries of boards of directors and chief executives of parastatals.In June, Pohamba told the heads of parastatals to pull up their socks.He said “unscrupulous managers” milked State-owned enterprises to finance their own extravagant lifestyles instead of pumping the gains back into Government coffers for development.Pohamba warned that such practices would no longer be tolerated and that boards of directors at parastatals would be elected on the basis of their capabilities instead of allegiance to certain individuals.Corrupt heads of parastatals or other employees would “face the full force of law”, the President warned.”The nation is eagerly waiting to see action that we will take in order to address this unacceptable state of affairs,” the President told them.He backed his statements with statistics and facts.The President said the Medium Term Expenditure Framework for this financial year and the next indicated that only eight SOEs had paid dividends, totalling a mere N$33 million.He said the commercial entities were established to reduce costs and to generate funds for development in socially deprived areas.Yet, some SOEs had failed Government and its people through the “sad truth” of corrupt practices as revealed by presidential commissions.”The commissions have revealed disturbing and shocking malpractices, misuse of funds, corruption and misappropriation of assets in some parastatals.”Pohamba said the State would no longer sit back and watch them destroy the nation’s hard-earned cash.Government funds were used to create SOEs and the State would ensure that they were efficient and productive.Finance Minister Saara Kuugongelwa-Amadhila told the highpowered gathering that many State-owned enterprises have become a liability to the State and that Government is unable to maintain them, as they divert much-needed funds.”Some parastatals have lost their ability to even pay salaries, and therefore need to be bailed out by Government.Such tendencies derail our resource allocation priority areas,” Kuugongelwa-Amadhila said.Director General of the National Planning Commission Helmut Angula said there were close to 40 State-owned enterprises with assets worth N$21 billion.”The question is whether we utilise them well.We must try and contain the room for abuse of resources,” Angula said.Angula presented a paper on economic growth and sustainable development to which Kuugongelwa-Amadhila was responding at the meeting.Five years ago Angula led a Cabinet team that did a survey on the salaries of boards of directors and chief executives of parastatals.In June, Pohamba told the heads of parastatals to pull up their socks.He said “unscrupulous managers” milked State-owned enterprises to finance their own extravagant lifestyles instead of pumping the gains back into Government coffers for development.Pohamba warned that such practices would no longer be tolerated and that boards of directors at parastatals would be elected on the basis of their capabilities instead of allegiance to certain individuals.Corrupt heads of parastatals or other employees would “face the full force of law”, the President warned.”The nation is eagerly waiting to see action that we will take in order to address this unacceptable state of affairs,” the President told them.He backed his statements with statistics and facts.The President said the Medium Term Expenditure Framework for this financial year and the next indicated that only eight SOEs had paid dividends, totalling a mere N$33 million.He said the commercial entities were established to reduce costs and to generate funds for development in socially deprived areas.Yet, some SOEs had failed Government and its people through the “sad truth” of corrupt practices as revealed by presidential commissions.”The commissions have revealed disturbing and shocking malpractices, misuse of funds, corruption and misappropriation of assets in some parastatals.”Pohamba said the State would no longer sit back and watch them destroy the nation’s hard-earned cash.Government funds were used to create SOEs and the State would ensure that they were efficient and productive.