Dual- Governance model failed public enterprises performance- Jooste

 

The introduction of a Dual-Governance model has failed performance of public enterprises, minister of public enterprises, Leon Jooste said.

There is no evidence to demonstrate that a Dual-Governance model has ever worked effectively in any other country, he said.

“The ministry has not amended the principle Act which made it impossible for the ministry to effectively carry out its mandate which is to position Namibia's key public enterprises to play their meaningful role in the country's development agenda, and ensure that public enterprises are well managed to reduce the financial burden on the state.”

“This mandate is to be executed by adopting a more centralised governance model to replace the existing Dual-governance model,” he said.

He added that the ministry was tasked to propose the most appropriate model which is referred to as the Hybrid Governance Model and which was tabled and approved by cabinet.

Jooste also said that the creation of the public enterprise ministry to implement a centralized ownership model for public enterprises was a visionary move.

“The ministry has spent countless hours analysing and diagnosing the core reasons behind the obvious failure of most of our public enterprises, the commercial public enterprises in particular and the overwhelming reasons can be attributed to the highly flawed Dual-Governance model. This is not a Namibian failure as such, but rather a common global scenario, which is why many countries which have not already migrated towards a more centralized governance or ownership model are in the process of doing so,” he said.

He added that introduction of the Hybrid Governance model through the new public enterprise governance Act will provide the ministry with the optimum institutional and organizational infrastructure to reform public enterprises without escalating cost.