PM to assume direct oversight of SOEs

Prime Minister Elijah Ngurare and his successors in the future will assume direct authority over Namibia’s public enterprises if the Public Enterprises Governance Amendment Bill, tabled in the National Assembly on Wednesday, is gazetted in its proposed form.The bill seeks to clearly define the powers and responsibilities of each portfolio minister, including representing the State’s ownership interests in entities under their ministries, appointing and removing board members, providing strategic direction, approving public enterprises’ plans and budgets, entering governance and performance agreements, and tabling annual reports in Parliament.Crucially, the legislation places the governance of public enterprises directly under the prime minister’s purview, granting him the power to intervene and assert leadership in cases of governance or leadership crises.The dismantling of the ministry of public enterprises over two years ago created uncertainty about the future of governance, compliance, and performance management across State-owned enterprises (SOEs). Earlier this year, President Netumbo Nandi-Ndaitwah’s administration transferred the defunct ministry’s functions to individual line ministries, marking a major shift in SOE oversight.Despite this structural overhaul, the Public Enterprises Governance Act (PEGA) of 2019 remains in force and continues to regulate governance, performance, and accountability across SOEs.Under the proposed amendments, shareholder powers in commercial public enterprises — such as appointing auditors, approving major transactions and capital structure changes, declaring dividends, and authorising material asset transactions — will rest with the minister of finance.The prime minister will also be empowered to issue directives on common corporate governance standards, including remuneration for board members and senior executives. This will reinforce his central role in promoting sound governance, parity, and uniformity across all public enterprises.Additionally, dividend policy approvals will fall under the finance minister, following consultation with the prime minister and relevant line ministers. In cases of disagreement, the finance minister may issue written directives on dividend payments, balancing fiscal prudence with ministerial oversight.Other key updates include provisions for confidentiality, investment policy consultations, emergency temporary board appointments, and administrative realignments to ensure consistency under the new governance framework.Tabling the Bill for its second reading, Ngurare said the amendments aim to reform Namibia’s public enterprise governance by clarifying powers, aligning shareholder and policy oversight roles, and enhancing efficiency and accountability.He explained that the Bill redefines the term “minister” in the 2019 Act, transferring specific functions from the former minister of public enterprises to the prime minister. This, he said, enables him to provide system-wide leadership as head of administration and government business in Parliament.“The Bill also empowers relevant line ministers to exercise greater control over their respective public enterprises,” he said, adding that the minister of finance will retain shareholder functions for commercial entities.Ngurare acknowledged that the 2019 framework had exposed challenges in defining roles and responsibilities, especially between policy oversight and shareholder decision-making.“The 2019 Act centralised too many functions in the minister responsible for public enterprises, including board appointments and dividend approvals. While that ensured uniformity, it also led to delays and overlapping mandates. This Bill seeks to resolve those inefficiencies,” he said.Under the proposed amendments, all references to “minister” in the 2019 Act will be replaced with “prime minister,” making him the chief steward of public enterprise performance. The Bill further allows the prime minister, with Cabinet’s concurrence, to designate relevant ministers by notice in the Government Gazette to avoid bureaucratic delays.Ngurare said the reforms will strengthen Cabinet’s collective responsibility, improve clarity and accountability, and accelerate decision-making.“These amendments enhance legality and accountability while preserving parliamentary oversight through annual reports laid before the House,” he said.He emphasised that the reforms will not result in job losses. “While the implementation of these amendments will inevitably lead to workflow adjustments, no positions will be lost in any office, ministry, or agency,” he assured.“These amendments clarify roles, accelerate decisions, and safeguard the State’s value and interests in our public enterprises,” Ngurare said.Debate on the Bill has been postponed to next Tuesday to allow lawmakers more time for scrutiny. - nikanor@nmh-hub.com.na

PM to assume direct oversight of SOEs

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Namibian Sun 2025-10-14

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PM to assume direct oversight of SOEs

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Namibian Sun 2025-10-14

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