Jooste limits paid SOE board meetings
The minister of public enterprises, Leon Jooste, has said parastatal boards will only be paid for four meetings annually starting this year.
Jooste said under normal circumstances, a board does not have to sit more than four times in a year. They are more than welcome do so, provided that they do so on a pro bono basis, he added in an interview with Nampa.
Should there be a pressing need which will require a given board to meet more than four times, such a board will be compelled to apply for an additional board meeting, which will be scrutinised by the ministry, he said.
The public enterprises ministry will monitor closely the number of times each board meets, he added.
“We will pick it up in their budget. If they want to meet more often than that, they do that pro bono, so they are not paid. I would not have a problem necessarily. It should not be necessary to meet more than four times,” stressed the minister.
Jooste was responding to questions by Nampa on how the ministry intends to curb the abuse of funds by the boards of public enterprises in the form of sitting fees.
Exorbitant
According to recent media reports, the board of Namibia Students Financial Assistance Fund (NSFAF) met more than 16 times last year, pocketing at least N$600 000 in the process.
The reports further purported that the board’s chairperson claimed N$10 580 for chairing a meeting, while other board directors claimed NS5 983.
Board members at bigger public enterprises, such as the Namibia Power Corporation (NamPower) reportedly earn up to N$20 000 just for attending a board meeting.
Jooste is concerned that the boards of public enterprises meet multiple times in a year, yet this does not translate into positive results, particularly with regards to the execution of the parastatals’ core mandates.
To enact this and other changes, Jooste said the ministry will need the refined State-Owned Enterprises Governance Act to be passed into law, as it is “severely confined” by the current legislation governing public enterprises in the country.
Jooste noted that achieving this will require the constant support of both the President and Prime Minister as “these are difficult things politically”. - Nampa
Jooste said under normal circumstances, a board does not have to sit more than four times in a year. They are more than welcome do so, provided that they do so on a pro bono basis, he added in an interview with Nampa.
Should there be a pressing need which will require a given board to meet more than four times, such a board will be compelled to apply for an additional board meeting, which will be scrutinised by the ministry, he said.
The public enterprises ministry will monitor closely the number of times each board meets, he added.
“We will pick it up in their budget. If they want to meet more often than that, they do that pro bono, so they are not paid. I would not have a problem necessarily. It should not be necessary to meet more than four times,” stressed the minister.
Jooste was responding to questions by Nampa on how the ministry intends to curb the abuse of funds by the boards of public enterprises in the form of sitting fees.
Exorbitant
According to recent media reports, the board of Namibia Students Financial Assistance Fund (NSFAF) met more than 16 times last year, pocketing at least N$600 000 in the process.
The reports further purported that the board’s chairperson claimed N$10 580 for chairing a meeting, while other board directors claimed NS5 983.
Board members at bigger public enterprises, such as the Namibia Power Corporation (NamPower) reportedly earn up to N$20 000 just for attending a board meeting.
Jooste is concerned that the boards of public enterprises meet multiple times in a year, yet this does not translate into positive results, particularly with regards to the execution of the parastatals’ core mandates.
To enact this and other changes, Jooste said the ministry will need the refined State-Owned Enterprises Governance Act to be passed into law, as it is “severely confined” by the current legislation governing public enterprises in the country.
Jooste noted that achieving this will require the constant support of both the President and Prime Minister as “these are difficult things politically”. - Nampa
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