NAMIBIA’S STATE-OWNED ENTERPRISES TOLD TO STOP DEPENDING ONLY ON GOVT FUNDING

WINDHOEK, Namibian Finance Minister Calle Schlettwein has called on the country's State-owned entreprises (SOEs) to stop depending solely on the government for funding as this means that they are not doing what is expected of them.

"Public entities remain a drain on the Government's budget. They have lost the ability to pay salaries and operational commitments on their own, so time and again, taxpayers are forced to bail them out," he told a media conference here Monday regarding the recent rating announced by Moody's Investors Service.

Schlettwein noted that the government's stance going forward is to align revenue to expenditure so that debt is minimised and the debt ratio is maintained at 42 per cent, which is a threshold for small, medium-income countries.

"In fact, we want to bring that (ratio) down to a self-imposed threshold of 35 per cent by improving quality of spending and cutting out and avoiding non-essential spending. We want to strengthen our ability to form a budget point of view in order to progressively address the three main pillars of the National Development Plan."

He said the government was taking a political stance in addressing poverty and inequality, and growing the economy in an inclusive way so that not only a small section in the community benefits from it. "We must really focus on improving the delivering of our State-owned enterprises without straining the Government's budget.?"

Source: NAM NEWS NETWORK