21 Apr 2017 07:50am
WINDHOEK, 21 APR (NAMPA) There is a need to urgently amend the State-owned Enterprises Governance Act of 2006 to give legitimacy to the Hybrid Governance Model which was approved by Cabinet in 2006, a top official said Wednesday.
Ministry of Public Enterprises (MPE) Deputy Minister, Engel Nawatiseb told the National Assembly (NA) that the biggest challenge currently facing the ministry is that the Act in its current form merely provides an oversight mandate.
This, he said, was not sufficient to deal with the transformation of the public enterprises (PEs) landscape.
Cabinet approved the Hybrid Governance Model for PEs in an effort to reform public institutions after the dual-governance model failed.
In the dual-governance model, the responsibility of monitoring and governing PEs were shared between the portfolio or shareholder ministries and the state-owned enterprises council chaired by the Prime Minister.
The hybrid model distinguishes between three primary categories: commercial public enterprises; non-commercial public enterprises and financial institutions; and extra-budgetary funds.
The mandate of the MPE is to position Namibias key PEs to play their meaningful role in the countrys development agenda and to ensure that public enterprises are well managed to reduce the financial burden on the State, Nawatiseb stated.
He further indicated that N.dollars 16 097 000 of its budget allocation is dedicated to its legal, economic and financial advisory services programme to develop and enhance good corporate governance guidelines.
The funds will also be used to enhance legal, regulatory frameworks and ensure that PEs comply with financial, and governance requirements.
The programme will provide technical support and consultation specifically to PEs that are earmarked for restructuring.
The ministry was allocated N.dollars 57 823 000 from the N.dollars 62.5 billion National Budget for the 2017/18 financial year.