Power play over state enterprises stirs backlash

OPPOSITION parties have criticised proposed amendments to the Public Enterprises Governance Act of 2019, warning that granting the prime minister full control over state-owned enterprises (SOEs) threatens accountability and good governance.

Popular Democratic Movement president McHenry Venaani has described the transfer of control of SOEs to prime minister Elijah Ngurare as “wicked, criminal and should never be allowed”.

“This whole thing is nefarious, and ill thought out. It’s bad for corporate governance, bad for competitive business, bad for the country, and it gives the country a bad image.

The government must not go forth with it,” he says.

Ngurare tabled the public enterprises governance amendment bill on 7 October.

The bill, if enacted will be known as the Public Enterprises Governance Amendment Act of 2025, giving the prime minister full control over SOE’s appointment of board members, chief executives, senior management, and reappointments and suspensions.

Venaani says this would erode the corporate governance.
He also questions the purpose of boards.

Affirmative Repositioning spokesperson George Kambala says the proposed act risks putting too much power in the hands of one individual at the expense of transparency, accountability, and collective governance.

“Namibia’s struggle has never been about too little power at the top, but too little honesty in how that power is used.

Our state-owned enterprises should not serve political convenience, but the public interest,” he says.

Kambala says good governance thrives where decisions are open to scrutiny and power is shared, not hoarded.

Strong institutions, not strong individuals are what keep a nation honest, he says.

“When power gathers in one hand, accountability disappears in the other. Namibia deserves institutions that answer to the people, not to personalities,” Kambala says.

He suggests that the amendment be reoriented to strengthen boards, empower citizens to demand accountability, and ensure that public enterprises operate with integrity and fairness.

Swanu of Namibia president Evilastus Kaaronda says the amendments as outlined in the bill would not work.
“I am busy preparing our opinion. In its current form, we don’t think it will work,” he says.

Landless People’s Movement spokesperson Lifalaza Simataa says putting SOEs under the Office of the Prime Minister, which already has a lot on its hands, cannot be trusted.

“It’s a concerning decision that has been taken, especially regarding SOEs on how they function.

There seems to be no appropriate plan to ensure SOEs are functioning optimally and are not a liability to the government.

Putting them under the OPM and an office with other tasks is not a trend we can trust,” he says.

Simataa says in the previous portfolio, SOEs performed poorly, which has been a problem over the years.

‘LONG OVERDUE’

Economist Josef Sheehama says the amendment of the act is long overdue.

“In one of my articles, I wrote, ‘Reform state-owned enterprises now to avoid macroeconomic risk.

It is because the generally poor operational and financial performance of state-owned enterprises can be connected to governance problems,” he says.

Sheehama says the amendments would improve SOE performance, and government assets would be better preserved due to an efficient government shareholder management model that addresses major governance challenges.

He says SOE amendments are viewed as an essential weapon, and the separation of powers through checks and balances must be exercised to prevent one individual or group from gaining excessive power.

“It is advised that the governance of state-owned businesses be shielded from political interference and that board members be chosen through a competitive, merit-based procedure,” he says.

He says the new act should include a call for independent audits and a merit-based governance structure to contribute significantly to economic growth.
“If SOEs are managed professionally rather than politically, they can become more productive,” Sheehama says.

During his motivation for the bill, Ngurare said his directives would be subject to consultations with the Cabinet and line ministers before being executed.

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