EDITORIAL: Throwing money down the drain
An avalanche of non-performing parastatals, coupled with billions being pumped into such entities without a clear business case, continues to be the Achilles heel of taxpayers whose hard-earned money yields little returns.
During this financial year, parastatals will gobble up at least N$1.3 billion of taxpayer funds, and while many expects a different outcome, realist who knows the modus operandi of our parastatals knows all too well that pumping money into some of these SOEs is similar to throwing money into the dustbin.
As a country, we have developed great love for throwing money at every problem. We are not in the habit of enforcing the much-needed reforms to ensure that the mandates of parastatals are reached within the shortest possible of time and with limited resources.
The reforms we have attempted in recent years are of cosmetic nature, these include creating a ministry to oversee parastatals.
One could argue that one of the reasons our spending on social safety nets is so high is due to the ineffectiveness of parastatals that are failing to provide solutions to problems plaguing Namibians.
Government is not in a position to spend money with its eyes closed as it did over the years, mainly due to the subdued economic climate, a situation which presents a real threat to the existence of most of our parastatals that depend on government bailouts like a plague of locusts on crops.
During this financial year, parastatals will gobble up at least N$1.3 billion of taxpayer funds, and while many expects a different outcome, realist who knows the modus operandi of our parastatals knows all too well that pumping money into some of these SOEs is similar to throwing money into the dustbin.
As a country, we have developed great love for throwing money at every problem. We are not in the habit of enforcing the much-needed reforms to ensure that the mandates of parastatals are reached within the shortest possible of time and with limited resources.
The reforms we have attempted in recent years are of cosmetic nature, these include creating a ministry to oversee parastatals.
One could argue that one of the reasons our spending on social safety nets is so high is due to the ineffectiveness of parastatals that are failing to provide solutions to problems plaguing Namibians.
Government is not in a position to spend money with its eyes closed as it did over the years, mainly due to the subdued economic climate, a situation which presents a real threat to the existence of most of our parastatals that depend on government bailouts like a plague of locusts on crops.
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Namibian Sun
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