SOE fat cats face salary slash

A LETTER from Government to various ministries and parastatals, ordering an investigation into how the salaries of people working for parastatals could be scaled down in line with those of the public service, has sent shock waves through these entities.

“Our salaries would be drastically reduced if we will get paid like civil servants,” a shocked general manager at one of the fairly successful State-owned enterprises (SOEs) told The Namibian yesterday. “There will be a tremendous brain drain, as employees will move to greener pastures in the private sector,” the official speculated.However, The Namibian has reliably established that the intended salary cuts would only apply to new staff recruited at State-owned enterprises.”All I can tell you is that the Central Governance Agency was tasked by Cabinet to look into the matter and to compile a report with recommendations,” a civil servant working in the Prime Minister’s Office said yesterday.”The intention is to cut back on the sometimes exorbitant salaries paid by SOEs,” said the person, who did not want his name published.”It would of course be rather awkward if, say, a new director gets appointed under the possible lower salary scale on the level of civil servant, when a deputy director in the same department who is still paid according to the previous salary system earns much more.”Singapore, which has a very successful economy and efficient government, left parastatals untouched but hires permanent secretaries for government ministries on performance contracts which are limited to a period of a few years.They must run ministries like the chief executives of private companies.”There will be a tremendous brain drain, as employees will move to greener pastures in the private sector,” the official speculated.However, The Namibian has reliably established that the intended salary cuts would only apply to new staff recruited at State-owned enterprises.”All I can tell you is that the Central Governance Agency was tasked by Cabinet to look into the matter and to compile a report with recommendations,” a civil servant working in the Prime Minister’s Office said yesterday.”The intention is to cut back on the sometimes exorbitant salaries paid by SOEs,” said the person, who did not want his name published.”It would of course be rather awkward if, say, a new director gets appointed under the possible lower salary scale on the level of civil servant, when a deputy director in the same department who is still paid according to the previous salary system earns much more.”Singapore, which has a very successful economy and efficient government, left parastatals untouched but hires permanent secretaries for government ministries on performance contracts which are limited to a period of a few years.They must run ministries like the chief executives of private companies.