SOE ownership unclear
It is unclear who owns Star Protection Services, which is still funded by the veterans' affairs ministry.
A briefing paper on public enterprise governance in Namibia published by the Institute for Public Policy Research (IPPR) reveals that Star Protection Services, its sister company Bricks Enterprises, and other companies such as August 26 and Windhoeker Maschinenfabrik have been sold and their ownership is unclear.
These companies are listed in schedule 1 of the Public Enterprises Governance Act of 2016, but they are not part of the hybrid governance model for Namibian public enterprises.
Star Protection Services, a security company, is a former Development Brigade Corporation (DBC) project which the veterans' affairs ministry took over.
The company was established in 1989 by the Swapo-owned Kalahari Holdings, in partnership with the government, in order to create jobs for war veterans who could not secure jobs in the police and defence forces.
The IPPR report states that the Ministry of Public Enterprises itself is inconsistent. The document introducing the hybrid governance model refers to 72 companies from Schedule 1, seemingly ignoring the new, expanded definition under the amended Act, but only lists 67.
Referring to Star Protection Services, Namibia Bricks Enterprises, August 26 Holdings Company and Windhoeker Maschinenfabrik, it states: “The first two have reportedly been sold off, while the latter are controlled by the military. The same 67 enterprises are featured on the website, which previously claimed 90 and 98 enterprises at different points in time.
“This is a problem because clarity around ownership is of utmost importance when it comes to public enterprises. Because public enterprises are ultimately owned by the citizens, and because they are often designed to provide important services to the public, they should operate under especially stringent rules of accountability – they should be more public than public companies.”
Public enterprises minister Leon Jooste could not clarify the ownership of these companies, but said the ministry was drafting a new bill that would gazette the current SOEs.
He told Namibian Sun that the Public Enterprises Governance Act was flawed in that it only allowed for entities to be added and not to be deleted. there is also no official list of public enterprises for the hybrid governance model.
“The new bill allows for an entirely new designation process and all these entities will then be gazetted accordingly after the process. For details on these entities I suggest you contact the line ministries,” Jooste said.
Star Protection Services offers property protection, armed guards, cash-in-transit protection and rapid armed response and VIP services.
According to its general manager, Veikko Peelenga, it employs 286 security guard across the country.
Peelenga refused to provide the company's last three annual reports, but said that following the dissolution of the DBC, Star Protection Services was placed under the jurisdiction of the veterans' affairs ministry.
“I can only assist you with operational issues, but other things that you want to find out you can contact the veterans' affairs permanent secretary,” said Peelenga.
The veterans' affairs ministry's spokesperson, Edson Haufiku, could not say much about the company ownership. He said he had to wait for the new permanent secretary, who was on a familiarisation visit to the regions, to respond to queries.
In 2015 the veterans' affairs ministry helped the security company to build a N$19.8 million head office at Ondangwa, which includes a conference hall and a cash-in-transit room.
The company also has branches at Grootfontein, Rundu, Katima Mulilo, Gobabis, Walvis Bay, Keetmanshoop, Okahandja, Mariental, Otjiwarongo, Ondangwa and Oshakati.
ILENI NANDJATO
These companies are listed in schedule 1 of the Public Enterprises Governance Act of 2016, but they are not part of the hybrid governance model for Namibian public enterprises.
Star Protection Services, a security company, is a former Development Brigade Corporation (DBC) project which the veterans' affairs ministry took over.
The company was established in 1989 by the Swapo-owned Kalahari Holdings, in partnership with the government, in order to create jobs for war veterans who could not secure jobs in the police and defence forces.
The IPPR report states that the Ministry of Public Enterprises itself is inconsistent. The document introducing the hybrid governance model refers to 72 companies from Schedule 1, seemingly ignoring the new, expanded definition under the amended Act, but only lists 67.
Referring to Star Protection Services, Namibia Bricks Enterprises, August 26 Holdings Company and Windhoeker Maschinenfabrik, it states: “The first two have reportedly been sold off, while the latter are controlled by the military. The same 67 enterprises are featured on the website, which previously claimed 90 and 98 enterprises at different points in time.
“This is a problem because clarity around ownership is of utmost importance when it comes to public enterprises. Because public enterprises are ultimately owned by the citizens, and because they are often designed to provide important services to the public, they should operate under especially stringent rules of accountability – they should be more public than public companies.”
Public enterprises minister Leon Jooste could not clarify the ownership of these companies, but said the ministry was drafting a new bill that would gazette the current SOEs.
He told Namibian Sun that the Public Enterprises Governance Act was flawed in that it only allowed for entities to be added and not to be deleted. there is also no official list of public enterprises for the hybrid governance model.
“The new bill allows for an entirely new designation process and all these entities will then be gazetted accordingly after the process. For details on these entities I suggest you contact the line ministries,” Jooste said.
Star Protection Services offers property protection, armed guards, cash-in-transit protection and rapid armed response and VIP services.
According to its general manager, Veikko Peelenga, it employs 286 security guard across the country.
Peelenga refused to provide the company's last three annual reports, but said that following the dissolution of the DBC, Star Protection Services was placed under the jurisdiction of the veterans' affairs ministry.
“I can only assist you with operational issues, but other things that you want to find out you can contact the veterans' affairs permanent secretary,” said Peelenga.
The veterans' affairs ministry's spokesperson, Edson Haufiku, could not say much about the company ownership. He said he had to wait for the new permanent secretary, who was on a familiarisation visit to the regions, to respond to queries.
In 2015 the veterans' affairs ministry helped the security company to build a N$19.8 million head office at Ondangwa, which includes a conference hall and a cash-in-transit room.
The company also has branches at Grootfontein, Rundu, Katima Mulilo, Gobabis, Walvis Bay, Keetmanshoop, Okahandja, Mariental, Otjiwarongo, Ondangwa and Oshakati.
ILENI NANDJATO
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