Give CEOs longer contracts – Hinda-Mbuende

Deputy finance minister Maureen Hinda-Mbuende says CEOs of public enterprises should be given longer contracts to help them better manage the institutions they lead.

Short-term contracts mean individuals will not be fully committed to running state-owned enterprises (SOEs) efficiently, she said.

Her comments follow a recent engagement she had with CEOs and board directors in September.

“One of the challenges is job security. I identified it as a risk factor. If people have five-year contracts, it will offer a bit of comfort,” she said of CEOs of SOEs.

She further cited examples of CEOs struggling to find notable employment after their terms of office come to an end in instances where they are still young, saying it was a problematic occurrence.

“I have not had any complaint in person by any CEO. I have [however] witnessed CEOs being unemployed who can hardly get a job anywhere else,” Hinda-Mbuende said.

Conflict

When quizzed on what she would do to bring her suggestion to fruition, she said it would need further introspection.

“It is my own assessment. I have not heard any direct complaint, but it is a challenge that I have identified. Maybe it is something that I can explore on my own side; it is an area I identified as a risk on my side,” she said.

Conflict about the non-renewal of contracts of CEOs of public enterprises is a regular occurrence in Namibia.

Some CEOs have argued that their contribution and performance have been ignored by boards of directors when deciding not to renew their contracts.