Diescho-led SOE task force disbanded

Government's public enterprise review task force was disbanded on Monday after the Office of the Prime Minister (OPM) reviewed and accepted the committee's own recommendation that its mandate duplicated work already completed by similar committees established by previous administrations.

Prime Minister Elijah Ngurare appointed the task force in June to review salaries, executive recruitment and governance at Namibia's public enterprises.

Task force chairperson Professor Joseph Diescho said members were informed during a virtual meeting on Monday that the committee had been dissolved. He has since expressed dissatisfaction with the manner in which the task force was discontinued.

Namibian Sun understands that, since its establishment, the task force met twice with the prime minister and OPM officials. During the first meeting, members reportedly explained that, after beginning their preliminary work, they discovered that much of their mandate overlapped with work already completed by previous committees, whose recommendations remain valid. Documents containing those findings were shared with the OPM for review.

At the second meeting, held on Monday, Ngurare and his officials reportedly indicated they were satisfied that the earlier work remained relevant. The prime minister accepted the task force's recommendation that continuing its assignment would merely duplicate existing efforts. On that basis, and with the concurrence of task force members, the committee was disbanded.

Speaking briefly to Namibian Sun yesterday, Diescho, who participated in Monday's meeting, said he had been unable to obtain clarity directly from Ngurare about the task force's status.

"The prime minister is not picking up my calls or text messages," he said.

"I have no idea what is going on. I can only comment on what is said by the OPM [Office of the Prime Minister]. Thank you."

Diescho, who is based in Germany, is currently in Namibia. In an earlier message, he indicated that he would return to Germany next week.

Officials familiar with the matter told this publication that Diescho had allegedly requested a vehicle, a dedicated office and support staff after being appointed chairperson of the task force.

Yesterday, he denied the allegation, insisting that the committee had collectively requested only the administrative and logistical support needed to execute its mandate.

"Neither I nor the team asked for a car or office staff. We only needed a functional secretariat, office space for all of us and the ability to travel to meetings," he said in a message addressed to task force member Tanja Jacobie, which was seen by Namibian Sun.

"Please verify to the media that I never asked for a vehicle or office staff for myself."

Diescho argued that the OPM should publicly announce the fate of the task force in the same manner it announced its establishment.

"The OPM needs to issue a public statement on the disbandment of the task force, just as it announced its establishment. I have my own reputation, and those of my team members, to protect," he said.

He added that he had travelled to Namibia specifically to carry out the assignment.

"I took three months off from my economic life in Germany to be here as per appointment by the Right Honourable Prime Minister, only to be told over a virtual phone link that I have no role after one month.

"If nothing is said by Thursday this week, I will have no alternative but to answer these media queries and related matters myself."

Work already underway

Namibian Sun has confirmed that a secretariat was established within the OPM to support the task force.

"The secretariat was based in the OPM chambers, and we had already started working," a task force member said on condition of anonymity.

"The task force was divided into two groups. One dealt with governance issues, while the other focused on remuneration."

The member said the committee had already begun gathering data and had briefed the prime minister on its progress.

"It was during those meetings that it emerged that some of the issues we were examining had already been dealt with by previous committees and that we should avoid duplicating that work."

According to the member, it was then proposed that the task force be placed on hold while Cabinet considers the recommendations of earlier committees.

"Only after Cabinet has considered those recommendations can a decision be made on whether to revive the task force or disband it."

'Unfortunate'

Former finance minister Calle Schlettwein yesterday described the reported disbandment of the task force as unfortunate, saying the review was necessary because many public enterprises continue to pay generous executive salaries despite weak financial performance.

"I commended the prime minister for making such a bold attempt to put together a team. Hefty salaries are being paid with no performance. In fact, the majority of SOEs are not making a profit. So it will be an unfortunate continuation of what we already know," he told Namibian Sun.

Shortly after the task force's appointment, Schlettwein warned that another review would achieve little without firm implementation and broader structural reforms.

He said previous attempts to classify public enterprises and cap executive remuneration had failed because some institutions sought reclassification into higher-paying categories.

Ngurare announced the appointment of the task force in late June through a statement issued by the Office of the Prime Minister.

The committee was appointed for a three-month term, from 1 July to 30 September.

"The task force has been established to undertake a comprehensive review of key governance and human resource matters within the public enterprises. Its responsibilities include reviewing salary structures across public enterprises and providing recommendations on the remuneration of board members and board committees," the statement said.

Three-month assignment

Dr Itah Kandjii-Murangi was appointed deputy chairperson.

The other members are Roads Authority CEO Conrad Lutombi, former The Namibian editor Tangeni Amupadhi, Lüderitz Waterfront Development Company CEO Fluksman Samuehl, retired Evangelical Lutheran Church in Namibia (ELCIN) pastor Mateus Tshapaka Tshakapolo, former //Kharas governor Aletha Frederick, former Presidential Affairs employee Matthew //Gowaseb, Public Service Commission member Hâbatte Doëses, Aino Mukwiilongo and lawyer Tanja Jacobie.

In addition to reviewing salary structures and board remuneration, the task force was mandated to examine policies governing the recruitment and appointment of public enterprise chief executive officers and recommend best practices.

It was also tasked with developing guidelines for appointing public servants to recruitment panels and advising government on the placement of public servants on public enterprise boards.

The committee was expected to submit its final report to the Cabinet Committee on Public Service by the end of September.

It remains unclear how much work the task force completed during July, whether it consulted any public enterprises or whether it had already received salary and governance information from them.

The task force was appointed amid longstanding concerns over the salaries and benefits paid to executives and board members at state-owned enterprises, including institutions that continue to rely on government bailouts.

Successive administrations have attempted to regulate remuneration at public enterprises, but previous salary-control measures have struggled to gain traction.