Jooste activates the Public Enterprises Governance Act of 2019

The Minister of Public Enterprises, Leon Jooste on Wednesday activated the public enterprises Governance Act of 2019 aimed at improving corporate governance of State-owned Enterprises (SOEs).

Briefing the media here, Jooste said the ministry decided to consolidate Act of 2005; 2008 and 2015 to integrate the hybrid model into one law (Act of 2019), which will lead to higher efficiencies and performance while the model effectively separates the functions of the State as policy formulator, regulator and implementer.

He said the change of the Act was necessitated by research and benchmarking to understand why the majority of public enterprises are failing and how some reference countries managed to effectively reform their public enterprises.

We identified two major core reasons for the failure of some of our public enterprises which includes flawed governance models and lack of relevant skills to perform the functions required from such a shareholder, he noted.

Highlighting the Act, he indicated among others that the law now clearly defines the functions of the line ministries for state-owned enterprises and explains different procedures in the appointment of board members of the various categories.

It further makes specific provision for performance management and provide the basis for performance-based culture through the Integrated Strategic Business Plans (ISBP).

Furthermore, it provides a powerful provision that relates to accountability; integrity; fraud and corruption.

Under this law the minister has the power to direct special investigations in relation to any matter concerning the business, trade, dealings, affairs, assets and liabilities of a public enterprises, he noted.

The hybrid governance model for Namibian public enterprises includes, 21 commercial SOEs which falls under the ministry of Public Enterprises, non-commercial SOEs are 42 and 11 financial institutions and extra-budgetary funds which remain under their respective portfolio ministries.

Source: Namibia Press Agency