Rogue parastatal managers warned

PRESIDENT Hifikepunye Pohamba yesterday hit out at “unscrupulous managers” who milk State-owned enterprises to finance their own extravagant lifestyles instead of pumping the gains back into Government coffers for development.

Addressing heads of State-owned enterprises (SOEs) in Windhoek, Pohamba warned that such practices would no longer be tolerated and that boards of directors at parastatals would now 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.He said Government would no longer tolerate what he termed “the disastrous state of affairs” in parastatals.”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 have paid dividends totalling a mere N$33 million.”It must be mentioned that this contribution falls far short of the State’s financial assistance to some enterprises,” he said.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,” he said.Pohamba said the State would no longer sit back and watch them destroy the nation’s hard-earned cash.Government money was used to create SOEs and thus the State would ensure that they were efficient and productive.”The Government is going ahead with the reform of these enterprises, clarifying the role and mandate of the shareholder, who in this case is the Cabinet, and by delegating supervision and monitoring functions to the Central Governance Council, chaired by the Prime Minister, which shall serve as a policy-maker and overseer,” he said.Pohamba said clear procedures and targets, to be monitored by the Central Governance Agency (CGA), would be developed and accountability at various levels of SOEs enhanced.”Thus, the Government will ensure that the boards of directors of parastatals consist of professional individuals who are capable to supervise the management of these entities.Towards this end, the criteria for the appointment of such directors are being strengthened,” the President said.His remarks were directed at SOEs that have let down Government and its people through corrupt practices and mismanagement of public resources.”To those performing parastatals, I can only say congratulations and keep up the good work,” he said.Pohamba said he believed in the philosophy that those performing should be rewarded and “the corrupt elements should face the full force of the law and must be punished accordingly”.He said a bill on the governance of parastatals would be tabled in Parliament soon and he would sign it as soon as it was passed.Corrupt heads of parastatals or other employees would “face the full force of law”, the President warned.He said Government would no longer tolerate what he termed “the disastrous state of affairs” in parastatals.”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 have paid dividends totalling a mere N$33 million.”It must be mentioned that this contribution falls far short of the State’s financial assistance to some enterprises,” he said.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,” he said.Pohamba said the State would no longer sit back and watch them destroy the nation’s hard-earned cash.Government money was used to create SOEs and thus the State would ensure that they were efficient and productive.”The Government is going ahead with the reform of these enterprises, clarifying the role and mandate of the shareholder, who in this case is the Cabinet, and by delegating supervision and monitoring functions to the Central Governance Council, chaired by the Prime Minister, which shall serve as a policy-maker and overseer,” he said.Pohamba said clear procedures and targets, to be monitored by the Central Governance Agency (CGA), would be developed and accountability at various levels of SOEs enhanced.”Thus, the Government will ensure that the boards of directors of parastatals consist of professional individuals who are capable to supervise the management of these entities.Towards this end, the criteria for the appointment of such directors are being strengthened,” the President said.His remarks were directed at SOEs that have let down Government and its people through corrupt practices and mismanagement of public resources.”To those performing parastatals, I can only say congratulations and keep up the good work,” he said.Pohamba said he believed in the philosophy that those performing should be rewarded and “the corrupt elements should face the full force of the law and must be punished accordingly”.He said a bill on the governance of parastatals would be tabled in Parliament soon and he would sign it as soon as it was passed.