Our money-milking SOEs

12 October 2018 | Columns

While making an impassioned plea this week for the National Assembly to pass the much-anticipated and long overdue Public Enterprises Governance Bill, public enterprises minister Leon Jooste touched some salient and critical issues.

It cannot be denied that over the years, the country's parastatals have been a hotbed of concern, specifically around billions in bailouts and ongoing board and management battles, as grubby fingers eyed tenders and contracts, which were inevitably creamed off the top, so the elite could benefit.

The ongoing shenanigans at SOEs have played their part in the country's unfolding economic crisis, as many of these parastatals have become bottomless pits into which taxpayer money has been thrown into with gay abandon.

This in turn leads to money not being available to drive other important aspects, while tenderpreneurs have lived off the fat of the land.

Available figures indicate that the country's public enterprises portfolio had a total asset value of N$93 billion at the end of June.

SOEs employ 17 224 people. The total liabilities of this sector, however, amount to a whopping N$44 billion, which leaves a net asset value of just N$49 billion.

Commercial public enterprises have a N$62 billion asset value, N$30 billion in liabilities, an annual income of N$23 billion, while expenditure totals N$21 billion and a profitability is just N$1.9 billion.

This is a 1.2% return on assets.

Obviously not all SOEs are designed to be money-making entities, but in the same breathe, they should not be money-milking machines.

The country is at a crossroads, in terms of an economy that has for too long been exporting its raw materials, which are then sent back as finished products.

A fundamental aspect that continues to underpin this disastrous economic model is the fact that SOEs are draining state coffers.

It has now reached a stage where the country can no longer afford this type of siphoning, which inevitably puts money into the pockets of the few. Jooste has an immense task ahead.

Similar News

 

The weight of expectation

1 day - 19 February 2019 | Columns

A huge weight of expectation will undoubtedly rest on political leaders vying for office later this year. While there is a sense that the current...

The lack of sexual ideology today

1 day - 19 February 2019 | Columns

Justicia Shipena Not only does thinking about sex matter, it matters more to humanity than sex in itself. There are many instances of the...

Our people sustain our group

5 days ago - 15 February 2019 | Columns

Engaged employees help establish better relationships with customers, since staff are the ones who are actually in contact with customers. This is why FirstRand Namibia...

Our Achilles heel of accountability

5 days ago - 15 February 2019 | Columns

Enforcing greater accountability has always been an Achilles heel for the Namibian government over the years. Questions have been raised over whether there is indeed...

Beware the juggernaut

6 days ago - 14 February 2019 | Columns

The opposition in Namibia have their work cut out for them.As in other election years, there is nothing on the horizon that makes one believe...

Our drugs scourge

1 week ago - 12 February 2019 | Columns

There is no denying that Namibia is one of many countries battling the socio-economic challenges posed by the abuse of substances. The country continues to...

Nappily’ ever after?

1 week ago - 12 February 2019 | Columns

Octavia Tsibes They say hair, especially for a woman, is her crown, the roots of her confidence and her identity. The conversation over...

Let's give 'normalisation' a chance

1 week ago - 11 February 2019 | Columns

In typical Namibian fashion, self-styled football commentators and keyboard warriors on social media have already started casting aspersions over the newly unveiled normalisation committee members...

Down with bullying tactics!

1 week ago - 08 February 2019 | Columns

It is interesting that those in the Swapo top leadership are the first to concede that factionalism harms the ruling party. Swapo is clearly a...

Access denied

1 week ago - 07 February 2019 | Columns

Any country, or for that matter its president, cannot rightfully claim to be serious about fighting corruption without implementing an access to information law.The Institute...

Latest News

Boyfriend appears for Unam student's...

13 hours ago | Justice

Paulus Nghipulenga (27) has appeared in the Oshakati Magistrate's Court for the murder of his girlfriend on Sunday evening at Ongwediva. She was...

Shaningwa humbled

13 hours ago | Politics

The Swapo leadership has ordered Swapo secretary-general Sophia Shaningwa to halt the recall of three Swapo councillors at Rundu, pending the outcome of a politburo...

First Lady enters shack fray

13 hours ago | Infrastructure

First Lady Monica Geingos has reached out to experts to bring their ideas on how to solve the housing crisis to the attention of policymakers....

Vehicle sales hit another speed...

13 hours ago | Economics

Jo-Maré Duddy – The 666 new vehicles that were sold in Namibia last month was the poorest January sales figure since 2006 and the lowest...

Marenica executes Namibian strategy

13 hours ago | Business

Jo-Maré Duddy - Marenica Energy Ltd has lodged nine exclusive prospecting licences (EPLs) with the ministry of mines and energy in Namibia over the past...

Africa Briefs

13 hours ago | Economics

SA needs to build confidence in power sectorSouth Africa needs to invest more to rebuild confidence in its ability to supply power, its energy minister...

Taxed to death

13 hours ago | Opinion

In their report titled ‘Quarterly Economics and Fixed Income 1Q 2019: What Lies Ahead in 2019?’, Simonis Storm Securities (SSS) said during recessions, among the...

TradePort gets manganese green light

13 hours ago | Environment

The environment ministry has issued TradePort Namibia, one of the South African companies planning to export manganese ore through the port of Lüderitz, an environmental...

Low Orange River threatens grape...

13 hours ago | Agriculture

The dangerously low water level of the Orange River could have a devastating impact on Namibia's production of table grapes, an important export product earning...

Load More