EDITORIAL: Centralising SOE oversight - progress with a caveat

Namibia has long grappled with faltering state-owned enterprises, where inefficiency, mismanagement, and bureaucratic gridlock have become all too familiar. The government’s recent move to place public enterprises under the direct oversight of the prime minister is both bold and overdue - a potential turning point in the quest to restore competence and accountability to our parastatals. The Public Enterprises Governance Amendment Bill, tabled this week, could well chart a new course for SOE performance.

The vacuum created when the ministry of public enterprises was dismantled over two years ago left governance adrift. Responsibilities were scattered among line ministries, often resulting in overlapping mandates, delays, and even occasional turf wars. By centralising oversight under the prime minister, the proposed framework promises cohesive leadership while still allowing line ministers operational control within their sectors. It also brings these entities closer to the apex of decision-making. Since the prime minister reports directly to the president, issues - from strategic decisions to urgent crises - can now be escalated and addressed far more quickly, bypassing the bureaucratic lag that has long hampered effective governance.

The Bill also thoughtfully defines the role of the minister of finance in overseeing commercial entities, striking a balance between fiscal discipline and operational oversight.

Yet, the concentration of power is a double-edged sword. While current Prime Minister Elijah Ngurare inspires confidence, his future successors may not. If a prime minister is inexperienced, self-serving, or corrupt, this centralisation could accelerate mismanagement rather than contain it. Authority, after all, is a tool, not a safeguard. Strong checks and balances, full transparency, and rigorous parliamentary scrutiny are essential to ensure that this new system serves the public interest rather than private ambitions. Without accountability, even the boldest reform can falter.