SOE golden handshakes crippling economy: DTA

03 Jun 2017 11:10am
WINDHOEK, 31 MAY (NAMPA) – The Namibian economy cannot afford to carry the financial burden of the State Owned Enterprises (SOEs) sector through golden hand-shakes, DTA of Namibia’s Secretary General (SG) Manuel Ngaringombe said.
Ngaringombe was referring to the recent suspension of the Meat Company of Namibia (Meatco) Chief Executive Officer, Vekuii Rukoro with full pay early in May 2017, pending investigations over the loss of funds at the company.
In a media statement issued on Wednesday, Ngaringombe said the state of affairs at SOEs continue to hinder service delivery while at the same time resulting in the loss of millions of dollars through both corrupt activities and multi-million dollar release of funds.
“The problem is that the public never hears what happens to these investigations and in the majority of cases these officials end up either returning to their positions or agreeing on multi-million dollar release packages,” Ngaringombe said.
He added that appointing the same people on more than one board, even where incidences of fraud and corruption occurred under their watch, was one of the mistakes the country was making.
The DTA SG accused SOE boards of failing to perform their supervisory functions, saying their roles are not clearly defined.
He said the suspension of executive officers with full pay financially cripples SOEs and leads to poor service delivery, as these enterprises are forced to operate on half-capacity during suspension periods.
“Boards must either intervene sooner or the MPE (Ministry of Public Enterprises) must urgently device a strategy to overcome this governance problem,” he said.