PAC satisfied with consultative meeting with CEOs of SOEs

26 Jun 2013 08:30
WINDHOEK, 26 JUN (NAMPA) - The Parliamentary Standing Committee on Public Accounts is satisfied with the consultative meeting it had with the chief executive officers (CEOs) of State-owned enterprises (SOEs) in November last year.
Tabling the report on that meeting in Parliament on Tuesday, the committee?s chairperson, Usutuaije Maamberua, said interventions were made in the form of comments and suggestions by SOE heads on issues raised by the Public Accounts Committee (PAC).
?Some of these issues include productivity versus expenditure, with the committee expressing concern on non-performance of some SOEs incurring losses year after year,? Maamberua stated.
Other concerns are that public monies are being used to run these SOEs, although no dividends are paid to Government.
Recurring non-submission of necessary information for auditing to the Office of the Auditor-General, and the fact that some SOEs do not have fixed asset registers in place, were also cause for concern.
Maamberua stated that the SOE bosses raised a pertinent issue - that of corporate governance amongst SOEs, adding that the feeling amongst them is that the roles of Boards? management and SOE representatives need to be outlined clearly to avoid a ?tug-of-war?.
?Issues of Board payments, especially for civil servants, also came to light. Some receive payment and others not, as a result creating confusion on policy directives and its implementations,? the PAC chairperson noted.
The resolutions taken at the meeting include that a forum will be established where SOEs will meet, discuss and share information and best practices.
The SOE Governance Council (SOEGC) was also tasked to undertake meetings of a similar nature to receive information from SOEs on the challenges, constraints and difficulties they face in fulfilling their given mandates.
?The SOEGC should also endeavour to clearly make a distinction on the roles of Boards? management and representatives by organising orientation and capacity-building workshops for all parties,? Maamberua said.
The government of Namibia promulgated the SOEGC Act, 2006 (Act NO. 2 of 2006), which establishes the SOEGC.
The SOEGC exercises oversight responsibilities with regard to the legal status of individual State-owned enterprises and State-owned companies, the function of the respective boards and the responsibilities of shareholder or portfolio Ministers.