SOEs ‘run like cuca shops’

A SWAPO MP in the National Council has alleged that some State-owned enterprises (SOEs) have been turned into personal empires while their top managers have become untouchables.

Stephanus Mogotsi, the councillor for the Kalahari constituency in the Omaheke Region, said SOEs have been turned into “tribal blocks”. “And this is reflecting a major weakness because we do not want to be reminded of things we want to forget,” Mogotsi told the National Council during the debate on the State-Owned Enterprises Bill.The bills seeks to establish an SOE Governance Council which will monitor, control and evaluate the operations of these entities.Supporting the bill, Mogosti ? who is also the Deputy Minister of Works, Transport and Communications ? said the bill was long overdue and symbolises a new approach to corporate governance for Namibia’s SOEs.”The bill clearly wants to address the symptoms and treat the sickness of bad governance in the way the SOEs are run,” he said.He said the boards and management of SOEs should remember that they are managing massive amounts of State money and assets and a higher premium was therefore placed upon them to do a proper job.”The current state of affairs makes this bill a must.Today, the majority of SEOs drain the State coffers instead of contributing thereto.Some SEOs are managed like a cuca shop,” Mogotsi added.Mogotsi said some SOEs have a hostile relationship with their line Ministers and lie to them.The National Council passed the State-Owned Enterprises Bill with amendments on Wednesday.”And this is reflecting a major weakness because we do not want to be reminded of things we want to forget,” Mogotsi told the National Council during the debate on the State-Owned Enterprises Bill.The bills seeks to establish an SOE Governance Council which will monitor, control and evaluate the operations of these entities.Supporting the bill, Mogosti ? who is also the Deputy Minister of Works, Transport and Communications ? said the bill was long overdue and symbolises a new approach to corporate governance for Namibia’s SOEs.”The bill clearly wants to address the symptoms and treat the sickness of bad governance in the way the SOEs are run,” he said. He said the boards and management of SOEs should remember that they are managing massive amounts of State money and assets and a higher premium was therefore placed upon them to do a proper job.”The current state of affairs makes this bill a must.Today, the majority of SEOs drain the State coffers instead of contributing thereto.Some SEOs are managed like a cuca shop,” Mogotsi added.Mogotsi said some SOEs have a hostile relationship with their line Ministers and lie to them.The National Council passed the State-Owned Enterprises Bill with amendments on Wednesday.