Shape up, Pohamba urges parastatals

ALL State-owned enterprises (SOEs) are part of Government’s service delivery system to bring about economic development and have to improve their efficiency and rely less on State funding, President Hifikepunye Pohamba says.

In his annual meeting with the heads of parastatals yesterday, President Pohamba demanded better performance, accountability, transparency, prudent fiscal control and adhering to existing rules. There are different categories of SOEs, which were established with specific mandates, according to Pohamba.”Some have a social function, others are better suited at generating profits, or to maintain and expand our physical infrastructure.We, as Government, expect results from all of them.Each and every parastatal must carry out its mandate to the fullest.Otherwise, such an institution will have no reason for existence.”Public institutions should not be used as cash-cows for self-enrichment.You must, therefore, put in place strong measures to prevent and to root out misappropriation of funds and other corrupt practices.”In his view, it did not go down well if chief executives of parastatals, who were suspended for wrongdoings, were allowed to receive golden handshakes, which appeared like rewards.”They don’t get fired, just suspended.It might be legally right, but in the end they receive something like N$500 000 as a golden handshake when they walk out,” he criticised.”Some SOEs decide on projects without board approval or discussing them with the sole shareholder, which is Government, and this must be avoided,” Pohamba stated.”Stick to the regulations in place and apply good governance.Such disregard for established procedures will not be tolerated.”In order to be effective, SOEs should strike a balance between socio-economic goals and strong corporate governance.”You must also become less dependent on State subsidies.To achieve this, you must improve the efficiency and effectiveness in your organisations, acquire appropriate technologies, mobilise capital and expertise and explore new markets.At the broader level, you must strive to attract foreign direct investment to the country through public private partnerships,” the President said.He proposed the creation of a forum for SOEs.Such a forum would provide a platform for them to share views and avoid duplication.This idea should be implemented without further delay, he urged.”It would foster a better atmosphere for co-ordination and mutual understanding.I believe that it is important for our parastatals to know what others are doing in their respective areas of jurisdiction with a view to complementing the implementation of our national development agenda.”There are different categories of SOEs, which were established with specific mandates, according to Pohamba.”Some have a social function, others are better suited at generating profits, or to maintain and expand our physical infrastructure.We, as Government, expect results from all of them.Each and every parastatal must carry out its mandate to the fullest.Otherwise, such an institution will have no reason for existence.”Public institutions should not be used as cash-cows for self-enrichment.You must, therefore, put in place strong measures to prevent and to root out misappropriation of funds and other corrupt practices.”In his view, it did not go down well if chief executives of parastatals, who were suspended for wrongdoings, were allowed to receive golden handshakes, which appeared like rewards.”They don’t get fired, just suspended.It might be legally right, but in the end they receive something like N$500 000 as a golden handshake when they walk out,” he criticised.”Some SOEs decide on projects without board approval or discussing them with the sole shareholder, which is Government, and this must be avoided,” Pohamba stated.”Stick to the regulations in place and apply good governance.Such disregard for established procedures will not be tolerated.”In order to be effective, SOEs should strike a balance between socio-economic goals and strong corporate governance.”You must also become less dependent on State subsidies.To achieve this, you must improve the efficiency and effectiveness in your organisations, acquire appropriate technologies, mobilise capital and expertise and explore new markets.At the broader level, you must strive to attract foreign direct investment to the country through public private partnerships,” the President said.He proposed the creation of a forum for SOEs.Such a forum would provide a platform for them to share views and avoid duplication.This idea should be implemented without further delay, he urged.”It would foster a better atmosphere for co-ordination and mutual understanding.I believe that it is important for our parastatals to know what others are doing in their respective areas of jurisdiction with a view to complementing the implementation of our national development agenda.”