Justicia Shipena
The official opposition party wants to create an independent Public Enterprises Governance Commission (PEGC) to stop politics from interfering with how state-owned enterprises (SOEs) are run under the new Public Enterprises Governance Amendment (PEGA) Bill.
The leader of the official opposition in parliament, Immanuel Nashinge, said the bill risks recentralizing power and undermining professional governance.
“The Bill, presented as reform, in reality takes power away from professionals and places it back into political hands,” he said during the parliamentary debate last week.
Nashinge said SOEs have collapsed under the weight of political interference, with the same individuals being reappointed to boards despite repeated failures.
Last month, prime minister Elijah Ngurare tabled the PEGA bill, which grants his office the final say on third-term extensions for SOE board members under exceptional circumstances. The amendment seeks to realign powers and responsibilities in SOE governance and amends the Public Enterprises Governance Act of 2019.
He said the dissolution of the Ministry of Public Enterprises created fragmented oversight and questioned the efficiency of placing SOE governance under the prime minister’s office. Nashinge proposed the PEGC as a solution, saying it would promote professional and transparent management.
“The PEGC should develop governance standards, manage transparent board appointments, monitor performance, and provide expert advice to line ministries,” he said.
He added that the commission should include legal, finance, and human resources professionals appointed through a merit-based process ratified by parliament.
“Our problem is not a lack of power in the centre; it is a lack of the right expertise and insulated governance,” he said. Nashinge warned that placing SOE oversight under the Prime Minister’s office contradicts President Netumbo Nandi-Ndaitwah’s earlier directive that public enterprises be returned to their respective line ministries.
Independent Patriots for Change (IPC) shadow minister of works and transport, Nelson Tuhafeni Kalangula, said the bill could reintroduce old governance weaknesses.
Kalangula warned that unclear roles between ministers could create opportunities for SOEs to exploit the system.
He cautioned that “a relevant minister’s operational directive might clash with the finance minister’s financial prudence, creating a loophole for public enterprises to delay or disregard instructions.”
Kalangula said the bill does not include penalties for ministers who fail to perform their statutory duties.
The bill gives the prime minister authority to appoint and remove board members and senior executives, approve strategic and financial plans, and oversee dividend and investment policies. It also empowers the prime minister to set remuneration levels and contractual obligations for SOEs, which become binding once published in the government gazette.
Under the amendment, board members will serve three-year terms, renewable once, while the line minister will act as the shareholder representative in line with the Prime Minister’s directives.
The bill also establishes a recruitment committee to manage board appointments and validates actions taken by the Prime Minister, the Minister of Finance, and other relevant ministers since March 2025.
“If the bill does not include punitive measures for failing to execute stipulated duties, the same governance weaknesses that crippled our SOEs will persist,” he said.
Member of parliament Mathias Mbundu criticised the bill as a superficial attempt at reform, arguing that it does not address the underlying problems of mismanagement, inefficiency, and waste within public enterprises.
“After years of losses, bailouts, and inefficiency, the Namibian people deserve a bill that fixes the disease, not one that rearranges the symptoms,” he said.
Mbundu raised concerns over clause four, which gives the prime minister authority to classify SOEs as commercial or non-commercial without measurable criteria.
“How can the public trust that classification will not be subjective and politically motivated, especially when no clear formula exists for measuring strategic importance or social impact?” he asked.
Mbundu criticised the government for labelling failing enterprises strategically to justify continued bailouts. He argued that clause 9 of the bill does not tie executive pay to performance and that clause 11 is impractical, as it allows ministers to set dividend policies for loss-making state-owned enterprises.
PEGA was introduced under the late President Hage Geingob to promote accountability and efficiency in SOEs. It later evolved into a reform framework managed by the Ministry of Finance before being dissolved earlier this year.
