In business terms corporate governance would simply refers to the system by which organizations are directed, controlled, and held accountable. In addition, I must say that indeed sound corporate governance would help fosters transparency, accountability, and efficiency. All these elements I have mentioned above are very crucial for organizational sustainability and national economic growth. 

In the land of the brave, Namibia’s state-owned enterprises (SOEs) play a significant role in delivering public services and driving economic development. However, many of our SOEs have become synonymous with mismanagement, corruption of all sorts if you like, and visible inefficiency for that matter. In this article I will examines the principles of good corporate governance, give you highlights of local governance failures within Namibia’s SOEs, and proposes actionable reforms and remedies which I strongly believe as country we should deliberately foster and chart towards such an endeavour.

Well, the principles of good corporate governance, which is globally recognized, should include accountability, whereby directors and managers must be answerable for their decisions and the performance of the entities. Transparency being a key element in decision-making processes should be clear, and accurate information should be disclosed to stakeholders. In conjunction with these elements Fairness for all stakeholders should be treated equitably and fairly across board in delivery. 

There must be a targeted responsibility for boards, and they must ensure that enterprises comply with laws and regulations, and operates ethically, viably and in a sustainable manner as a going concern principle of business management. However, there should also be independence towards boards, and they should always maintain independence to avoid conflicts of interest and undue influence. Integrity should be a conduit element through which ethical conduct should be promoted throughout the organization and SOE’s.

Of course, there is visible and undebated governance challenges in Namibia’s SOEs where most have repeatedly faced scandals involving financial mismanagement, poor service delivery, and lack of accountability. Chronic mismanagement and lack of a sustainable business model led to some SOE’s being liquidated costing the taxpayer billions of Namibian dollars in the process thereof. In some cases, this demonstrates the risks of weak oversight and blurred accountability and in the end, this shows howe poor corporate governance and corruption can severely damage public trust and national resources. 

Systemic weaknesses within SOE’s, politicized boards, lack of skilled leadership, weak regulatory enforcement, and limited stakeholder scrutiny are some of the many challenges at hand thus far. There is a big need for some specific policy reforms and strict control measures. To break the cycle of mismanagement, Namibia urgently needs robust governance reforms focusing on depoliticizing boards. Board appointments should be merit-based and transparent, ensuring directors possess relevant skills and independence. 

For example, you would find lawyer who does not know what if interests, rights and titles are assets nor does a person know if “goodwill” is an asset. In essence, how would a person as such make a sound argument in a court of law and worse is when incompetent personnels are politically put on board of SOE’s to the detriment of such pivotal organisations. 

Clear performance targets should be set for SOEs must have measurable key performance indicators (KPIs) aligned with national development goals. There should also be regular audits and public disclosure. Mandatory annual audits by independent bodies and proactive disclosure of financial and operational performance. In accountancy the Kings Reports enforces these elements. We need to enforcing accountability and if need be strict penalties should be given for breaches of fiduciary duty and corruption.

As a country we must strengthening regulatory oversight. There is also a need for capacity building to provide continuous training for board members and executives on governance, ethics, and risk management. 

Namibia’s economic stability and developmental goals hinge on the effective governance of its state-owned enterprises. By embracing the fundamental principles of corporate governance accountability, transparency, fairness, responsibility, independence, and integrity Namibia can transform its SOEs from liabilities into national assets and income. This transformation requires a political will, robust policy reforms, strict compliance measures, and a culture of ethical leadership.

* Abraham Shilomboleni is an author and a knowledgeable business, financial and economic analyst.