By: Nghiinomenwa-vali Erastus
Many public enterprises (PEs) are failing to prepare and submit annual reports to the Ministry of Finance and Public Enterprises and portfolio ministries as per prescribed time frames.
In 2021, 33 PEs did not submit their annual reports, while the figure in 2022 stood at 40, according to the Ministry of Finance and Public Enterprise.
Namibia has 21 commercial public enterprises, 38 non-commercial and 11 financial institutions and extra-budgetary funds.
According to the ministry, in 2021, 12 out of 21 commercial public enterprises submitted annual reports whilst only seven out of 21 commercial PEs presented theirs in 2022.
For non-commercial PEs, the situation is even direr as by 7 March 2023, 11 out of 38 of the entities submitted reports for the year 2020/2021 and for 2021/2022 only nine did that.
For the 11 categorised as financial institutions and extra-budgetary funds, two failed to submit their annual reports for 2020/2021, while four did not submit for 2021/2022.
Despite the ministry being in the dark of the previous year’s performance of the majority of the PEs, local media reported that the Ministry will allocate N$1 billion for the 2023/24 fiscal year for some of the PEs.
Furthermore, the Ministry will use the State to guarantee debt of an extra N$2 billion during the coming fiscal year, pushing government guarantees to N$12,7 billion.
According to the Public Enterprise Governance Act states that: “the board of a public enterprise must as soon as possible, but in any case not later than six months after the end of each financial year of the public enterprise, submit an annual report on the operations of the public enterprise in that year to the relevant minister,”
However, according to the updates from the Ministry, a number of CEOs and MDs together with their respective board of directors of various PEs have been breaking the law and keeping taxpayers in the dark.
The Villager has also asked the Ministry if there are penalties or punishment to the board or CEO/MD for not submitting their annual report as required by law.
“There are currently no punitive measures in place for the non-submission of the annual report, however, it is within the powers of the relevant minister to suspend/remove a board that is found not to perform/comply and this can also include non-submission of annual reports,” the Ministry told The Villager.
Email: erastus@thevillager.com.na
