SOE board members to sign performance agreements soon

15 Dec 2016 15:10pm
WINDHOEK, 15 DEC (NAMPA) – The Ministry of Public Enterprises (MPE) is in the process of developing a super database for commercial public enterprises that will allow the ministry to track performance and make early interventions where necessary.
This was announced by Minister of Public Enterprises Leon Jooste on Thursday during a media conference held to update the public on the implementation of the hybrid governance model for public enterprises.
The system will be known as the Public Monitoring and Evaluation System (PEMES).
Jooste further announced that new remuneration guidelines have been finalised and will herald the introduction of an integrated performance based system for the first time.
“The new guidelines are incentivised with basic salaries with long and short term performance based bonuses,” he said.
New performance agreements will also be signed with individual board members and these will contain measurable key performance indicators (KPIs).
These KPIs include economic, operational and compliance indicators custom-made to each entity’s unique environment and the performance agreement are legally binding agreements, Jooste said.
Boards will equally sign performance agreements with their chief executive officers or managing directors containing the same KPIs and these will cascade down into the lower ranks of employees.
“We will then be using PEMES to measure the performance and endorse the incentives where applicable,” the minister said.
In July this year, Cabinet approved the hybrid governance model for public enterprises in effort to reform the public institutions after the dual-governance model failed.
Cabinet also 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 public enterprises was 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 will execute full shareholder rights.
The amended Public Enterprises Government Bill to implement the hybrid model will only be tabled in the National Assembly next year.
Namibia has 72 public enterprises.
(NAMPA)
MMT/AS