Justicia Shipena
Popular Democratic Movement (PDM) leader McHenry Venaani has warned that the proposed Public Enterprises Governance Amendment Bill threatens good governance, accountability, and investor confidence in Namibia.
The warning follows the tabling of the bill by prime minister Elijah Ngurare in Parliament last week.
The amendment seeks to revise the 2019 Public Enterprises Governance Act (PEGA) by centralising oversight of state-owned enterprises (SOEs) under the prime minister’s office.
Under the proposed changes, the prime minister will gain broad authority over the appointment and removal of SOE board members and executives, as well as the approval of financial and strategic plans.
The bill also gives the Prime Minister the power to regulate remuneration, benefits, and contractual terms across all public enterprises.
Venaani said the proposed changes will weaken institutional independence and concentrate too much control in one office.
“The proposed amendment is a grave retrogression towards good governance of the public sector, and it will politicise institutions that are critical to the economic stability of the country and service delivery,” he said in a press statement on Monday.
He warned that the amendment could blur the line between political supervision and corporate management.
“By giving the prime minister the mandate to hire and fire state-owned enterprise leaders, power would be politicised to undermine checks and balances,” he said.
Venaani also argued that the move could erode investor trust and marginalise ministries with technical expertise.
“This form of centralisation would destroy the trust of investors and ruin the reputation of government-owned companies in Namibia. The bill proposed would institutionalise this intrusion by making the prime minister accountable for appointments, thereby depriving boards of autonomy and professional management,” he said.
He urged the government to strengthen governance protections instead of tightening political control.
“It should be orientated to enhancing transparency, accountability, and independence of boards and executives,” he said, adding that appointments should be based on merit through a transparent recruitment process.
According to the bill, line ministers will serve as shareholder representatives, implementing directives from the prime minister, appointing board members, approving budgets and tabling annual reports in parliament.
A recruitment committee will also be formed to manage appointments, while all actions taken by the prime minister or other relevant ministers regarding commercial public enterprises since 21 March 2025 will be validated.
Venaani said the executive should set policy and ensure legal compliance, not manage daily operations.
“The prime minister or the Cabinet should publish any order that involves intervention with the public enterprises and explain the reasons behind the intervention in writing, to be debated by Parliament,” he said.
He called on parliament, civil society, and the private sector to reject or amend the bill.
“The sustainability of Namibian state-run enterprises lies in independence, professionalism, and the rule of law. Political domination will simply bring instability, deter investment, and weaken service delivery,” he said.
The proposed amendment follows the Cabinet’s six-month suspension in August on new SOE board appointments while a law is being drafted.
The suspension aimed to prevent power disputes after the Ministry of Public Enterprises was dissolved.
The ministry, which was established under the late President Hage Geingob to reform and monitor SOEs, was later merged with the Ministry of Finance before being dismantled earlier this year under President Netumbo Nandi-Ndaitwah’s administration.
Governance of 18 commercial and eight extra-budgetary entities has since been transferred to their respective line ministries.
Caption
McHenry Venaani
- Photo: Contributed
