I wish to, first and foremost, extend my sincere apology for having not been able to join you last week at the 5th Public Enterprises Chief Executive Officers Forum which took place in Luderitz, //Kharas Region. I was looking forward to joining you at that forum, however, due to an urgent matter of national importance, regrettably, I could not come anymore. Therefore, I have organized this occasion to bring us together to share views and ideas on issues concerning the Public Enterprises in Namibia.
Public enterprises are entities that are wholly or partly owned by the State or the public and there are specific reasons why they were created. Primarily, these entities are created to provide services to the public or to address gaps in the market due to lack of private sector interest to invest in some sectors or to support economic growth, including by addressing market failures. Therefore, central to the existence of public enterprises, is effective and efficient provision of goods and services in the most sustainable and financial prudent way to the nation
To achieve their mandates, Public Enterprises should embrace best international practices of governance. Ministers or the Minister of Public Enterprises as the case may be, are responsible for overseeing the observance of good governance at Public Enterprises through the Board of Directors, whom they appoint. The Boards are expected to ensure good governance of Public Entities by adopting and enforcing good governance practices and by appointing appropriately qualified and competent Chief Executive Officers, who in turn, ensure effective management of the affairs of the companies under the supervision of the Board, and subject to establishing statutes and other relevant national laws
The aspect Perpetual Succession is as critical feature of any public entity, because it defines Public Enterprises in perpetuity
While the governance structure of Public Entity takes the shape of a pyramid, as is generally the case with any corporate entity, it is important that there are clear separation of functions and responsibilities, to ensure optimal performance and accountability of the institution. Lack of these can result in conflicts, poor governance and poor performance of the institutions
Most of public enterprises are created in terms of specific Acts of Parliament. But even with those that are established under, say the Companies Act, there should be no confusion as to whether they are separate legal entities that should take full responsibility for the full implementation of their mandates. Public ownership of an entity is not a justification for perpetual dependency on the fiscus for funding. Even non-commercial entities are expected to strive for optimal management by promoting cost efficiency and optimal execution of their mandates
The aspect Perpetual Succession is as critical feature of any public entity, because it defines Public Enterprises in perpetuity, and thus extend their responsibilities and mandates beyond the tenure of individual members and administrators. Strong institutions are good for enhancing State formation, and public enterprises should take advantage of this to establish themselves concretely