Cabinet approves Hybrid Governance model for public enterprises

21 Jul 2016 15:40pm
WINDHOEK, 21 JUL (NAMPA) – Cabinet has approved the Hybrid Governance model for Namibian Public Enterprises (PEs) in effort to reform the public institutions after the dual-governance model failed.
On Tuesday, Cabinet adopted the hybrid model that distinguishes between three primary categories, namely commercial public enterprises; non-commercial public enterprises and financial institutions; and extra-budgetary funds.
Under the dual-governance model, the responsibility of monitoring and the governing of PEs were shared between the portfolio or shareholder ministries and the state-owned enterprises council chaired by the prime minister.
In the Hybrid model, the administration and supervision of the various groups of non-commercial public enterprises will be the responsibility of the respective portfolio ministries, while for commercial public enterprises, the Ministry of Public Enterprises (MPEs) will henceforth execute full shareholder rights.
Briefing the media on Thursday, Minister of Public Enterprises Leon Jooste said after consultations, his ministry that was established more than a year ago, has identified the most suitable governance model for the country's current conditions.
“The model we are proposing is the obvious next step in the evolution of the governance of PEs and strikes the most ideal balance between being revolutionary yet subtle, after the obvious failure of dual-governance model has become profoundly evident.”
He explained that the hybrid model will ensure that ownership powers are defined and utilised to ensure that performance is aligned to the mandate and there is a clear mandate empowering all parties towards operational execution.
Jooste attributed the obvious failure of most commercial public enterprises to the highly flawed dual-governance model.
“I want to stress that this is not a Namibian failure as such, but rather a common global scenario, which is why countries, which have not already migrated towards a more centralised governance or ownership model, are in the process of doing so,” he explained.
Namibia has 72 public enterprises.