'Government is the problem'

JEMIMA BEUKES

The government will have to do away with cronyism and favouritism if it is to successfully implement the much-hyped recommendations of the high-level panel on the economy to revive Namibia’s ailing fortunes.

The government will also have to adopt a completely overhauled mindset and culture.

These are the sentiments of local economist Dr Omu Kakujaha-Matundu, who added that the recommendations published on Wednesday are “the same old story” and could only work if the government introduced a serious reward and punishment system for parastatal boards of directors, CEOs and other government leaders.

The panel this week submitted its final report to the presidency with a list of recommendations that includes the phasing out of the public enterprise ministry in the next five years, replacing non-performing boards of directors and CEOs, and attracting N$40 billion in foreign and local investment this year.

“What has happened so far was a culture of cronyism because these people were placed there because they were either party loyalists or they were politically connected. This must no more be the modus operandi if this must work.

“The question you will have to ask is whether you have the requisite skills and expertise in the economy, and sometimes you may even have to tap into international expertise. This could even be for CEOs of parastatals because you would need the right people,” Kakujaha-Matundu emphasised.

He said the government would have to adopt a strict vetting process in order to make sure it does not repeat history by appointing politically connected people in senior positions.

Other recommendations include the establishment of sovereign wealth funds, a moratorium on all fishing rights, quotas and mineral licensing and a transparent bidding process.

According to Kakujaha-Matundu, it would not be difficult to raise the recommended N$40 billion if the government implemented regulation 28 and keep pension funds in the country, but envisioned infrastructure projects must be identified.

“They told us at the so-called investment conference there was a pledge of about N$20 billion but they have not told us where this money has gone into.

“I am doubtful, but should that money be available and be put into serious projects, then it can make a serious dent and it could make a difference. I do not know about the sustainability but it will make a difference to economic growth,” the economist said.

‘Same old story’

Kakujaha-Matundu also said these recommendations remain theoretical and are nothing new, with the exception of the promised free plots in informal settlements.

According to Frederico Links a lot of these suggestions have been around for a long time, but the government’s failure to implement good advice remains a challenge.

“If you look at some proposals made over the years about these issues to kickstart the economy and to counter growing inequality and poverty through employment. Employment is the best way all of that is already there. Not new advice government has been given, it has long been on the table,” he said.

Links also agrees that the public enterprise ministry must be phased out because there is no clear indication of what it has done except passing a law.

“That ministry is really not value for money, and we understand they are paid very high salaries over there. Other than that, it is very dark ministry. Phasing it out is good idea, and then whatever responsibilities they have can be incorporated into some other portfolio,” he said.

According to Ndumba Kamwanyah some of the recommendations are sound and others are not so convincing, but the Act presents a clear roadmap on how it should be implemented.

He also argues that the introduction of the public enterprise ministry did not improve the situation of SOEs and the ministry should be phased out.

“The president will need to find a way to translate them into action, which is going to be a tall order. The other issue is that we should be careful to treat them as panacea.

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