All SOEs to be classified in reclassification exercise

01 Aug 2013 03:20
By Maggy Thomas
WINDHOEK, 31 JUL (NAMPA) - The State-Owned Enterprises’ Governance Council (SOEGC) is in the process of reclassifying all State-Owned Enterprises (SOEs), with such enterprises being placed into tiers based on their size and contribution to the economy.
There are currently 72 SOEs listed in the country.
In an interview with Nampa on Wednesday, Permanent Secretary/Executive Director of the SOEGC, Frans Sheehama said the reclassification of all SOEs in the country is at an advanced stage, and this exercise is expected to be completed by the end of the year.
The SOEGC falls under the Office of the Prime Minister (OPM).
“At the beginning of 2014, Namibia will have all SOEs classified and put into their respective tiers,” said Sheehama.
The classification of SOEs into three tiers started in 2010.
The data generated from a survey conducted by the SOEGC was used to contribute to the classification of SOEs in terms of their size and contribution to the economy, and therefore remuneration bands.
Three key quantitative indicators were regarded as relevant for the classification of SOEs, which include total revenue, total assets and total primary employment.
According to the regulations, a chief executive officer in Tier One should earn between N.dollars 401 199, and a maximum of N.dollars 803 413 per year.
In Tier Two, a CEO should earn between N.dollars 451 739 and N.dollars 987 197 annually, while if an SEO falls under Tier Three, the CEO should earn a minimum of N.dollars 709 722 and a maximum of N.dollars 1 532 828.
Sheehama’s statement is contrary to a report by a local daily newspaper this week that some SOEs were left out, or did not form part of the classification exercise.
The report singled out the University of Namibia (Unam), the Polytechnic of Namibia, the Government Institutions’ Pension Fund (GIPF) and the Bank of Namibia (BoN) as some of the institutions which were omitted from the Government-gazetted classification document.
The report quoted the Polytechnic of Namibia’s Rector, Tjama Tjivikua as saying that his institution did not form part of the classification.
“The guidelines or regulations do not apply to persons already employed before the coming into operation of the regulations, or to institutions not listed in the relevant remuneration guidelines or tables,” he was quoted as saying.
Sheehama explained that there were institutions which were mistakenly omitted on the revised 2013 Government Gazette list, but with this current classification exercise, all institutions which were mistakenly omitted will be included.
“Maybe some of the institutions were not listed as SOEs at the time, or did not exist that year. We will issue a new gazetted document to rectify the confusion,” he stated.
He, however, confirmed that the Polytechnic of Namibia and Unam did form part of the previous classification, and said the Central Bank and GIPF were not part of the classification either.
Unam falls under Tier Three, while the Polytechnic of Namibia falls under Tier Two.
Meanwhile, Sheehama also pointed out that Prime Minister (PM) Hage Geingob is not involved in the reclassification exercise, saying it started before the PM returned to his office last year.
He went on to say Geingob only signed the gazetted Government document.
He was reacting to the same report in a local English daily, which stated that the categories into which various SOEs were classified, and through which seals were put on the salaries of the heads of the institutions were recently changed by the current Prime Minister.
The report also said some institutions were totally removed from the classification document.