Quality board members lacking – Jooste
… commentators cite political interference
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