SOEs: Our perennial acne
With over 15 years of professional practice experience, Junius Mungunda, the Managing Partner of Deloitte has extensive experience in corporate governance and State Owned Enterprise (SOE)-sector analysis in Namibia where he has assisted Government on matters including:
• The Governance of SOEs in Namibia: A Situational Analysis (1999);
• A Governance Policy Framework for SOEs in Namibia (2001);
• Review of framework for the remuneration of chief executive officers and senior executives of SOEs (2009); and
• Facilitation of Corporate Governance seminars for a number of organisations, both in the SOE and private sector.
Recently, SOEs have come under fire amidst the public outcry over excessive bailouts to keep these sub vented organisations of the Government afloat, in this article Mungunda dissects corporate governance in SOE’s in Namibia.
PF: What in your view is corporate Governance?
JM: Let me first start by saying that governance can be defined as the system by which institutions, organisations or companies are directed and controlled. This means that governance comprises the structures, processes and procedures employed by that institution or company to facilitate the achievement of its objectives. The objectives to be achieved may be diverse, but will normally include common sense matters such as sustainable returns, good relations with stakeholders, protecting assets, compliance with laws and regulations. The reference to ‘corporate governance’ is due to the fact that the governance in question relates to corporate organisations.
We should however not restrict our debates regarding governance to the corporates, governance is pervasive through-out society, from governance at school level, sport clubs, government, private sector bodies, churches and importantly at individual level. As a society, when we interrogate governance, we should define this at a societal level, in terms of an ideal moral value code, and then try to live up to these.
PF: Tell us how significant is your profession and position to good governance and the economic growth of Namibia?
JM: I believe that as accountants and professionals, there is reliance on our profession to provide guidance on best practices, we can only provide guidance and advice, however decisions are taken by the boards and management teams of the various companies. Therefore, the ultima...
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