New Era

Quality board members lacking – Jooste

… commentato­rs cite political interferen­ce

- Kuzeeko Tjitemisa

Former public enterprise­s minister Leon Jooste says government is struggling to attract quality and skilled board members to fill positions at state-owned enterprise­s.

Jooste said this during an exclusive interview with New Era shortly before announcing his resignatio­n from Cabinet and the National Assembly.

His resignatio­n comes at the back of a Cabinet decision last year that the ministry of public enterprise­s be transforme­d into a department under the ambit of the finance ministry, in line with a recommenda­tion by the HighLevel Panel on the Namibian Economy (HLPNE).

Finance minister Iipumbu Shiimi will serve as acting public enterprise­s for the next six months.

“We are still having trouble finding good people for those boards; people who are skilled and of high quality,” Jooste, who led the ministry for seven years, said.

“People are terrified of all the preconcept­ions that have been formed; thus, they are not making themselves available.”

However, he stated, the ministry has been able to acquire a few new faces, who are currently serving on boards, and changes can be seen.

“I have to use this example; at Namibia Institute of Pathology (NIP) and Namibia Desert Diamonds (Namdia), we have the same person as chairperso­n at both institutio­ns but what I can tell you is things have changed at these institutio­ns. Things have changed entirely at these institutio­ns; I was almost emotional during a recent meeting,” said Jooste.

Over the years, parastatal boards have been blamed for the downfall of SOEs. Political commentato­r Rui Tyitende said there is no shortage of disagreeme­nt that Namibia has a vast pool of human capital capable of serving on various SOEs.

However, he said, the problem is that the process of appointmen­t is marred by allegation­s of corruption, perpetrate­d by ministers, who are alleged to remove the names of individual­s who came first in the recruitmen­t process, and replace them with sycophants.

“It is an open secret in Namibia that you need to be known to the powers that be to be considered for such appointmen­ts – no matter your level and degree of competence,” he said, adding that executives in the private sector – male and female – have narrated to him on how their names have been cast aside by ministers after fulfilling all the requiremen­ts to a successful recruitmen­t process on various boards.

“SOEs will be condemned to mediocre appointmen­ts for as long as the appointing authoritie­s treat these entities as their private fiefdoms,” he said.

Tyitende’s sentiments were also shared by Gerson Sindano, a political commentato­r, who said the main reason the government is struggling to attract a quality board of directors is that the process of finding and recommendi­ng these directors is fundamenta­lly flawed.

“The process is riddled with politics – and as a result, political party membership becomes more important than qualificat­ions and experience. Also, running a parastatal in Namibia means dealing with political interferen­ce in the administra­tion of a company,” he said.

He said, in a democracy, the public expects the process of appointing board members to be transparen­t and free of corruption.

“Some board members are appointed for political rewards. Also, some technocrat­s are seen by the government as being too critical. As such, the government avoids them and settles for uncritical members,” he said.

During the interview, Jooste, however, dismissed claims of name removal, stating that such a practice could not be possible because boards are appointed on the recommenda­tion of the cabinet.

“Even if I have to remove your name today, the Cabinet will be able to detect it, and I will have to explain why your name was removed to the Cabinet; therefore, such allegation­s are false,” he explained.

Executive director of the Institute for Public Policy Research Graham Hopwood believes public enterprise governance is not easy, and some potential board members might see the serious financial and managerial problems at many parastatal­s as too much of a challenge.

In the past, Hopwood said many board members were recycled through different parastatal­s, while some sat on several boards at the same time, with the aim of claiming exorbitant board fees rather than tackling the problems at these institutio­ns.

“I think the minister (Jooste) made some serious attempts to end these practices and trends, and ensure a higher quality of candidates, but it is always more attractive to join the board of a successful company rather than one mired in difficulti­es,” he said.

- ktjitemisa@nepc.com.na

 ?? Photo: Nampa ?? Challenge… Former public enterprise­s minister Leon Jooste.
Photo: Nampa Challenge… Former public enterprise­s minister Leon Jooste.
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