Namibia Ministers Bossing CEOs: Hangala Warns of Power Struggle

Ministers bossing CEOs, The Namibian, • Who’s in charge debate take centre stage at parastatal forum• ‘Remember, I am your minister’ – Hangala says young ministers are bossing CEOs. Businessman Leake Hangala says Namibia’s new Cabinet ministers are young, brilliant and well-educated, but they often remind board chairpersons or parastatal leaders who is in charge.

The recent comments by Leake Hangala have sparked debate on the role of Cabinet ministers in overseeing state-owned enterprises (SOEs) in Namibia. This development has significant implications for practitioners advising SOE boards and CEOs, as it highlights the need to navigate complex relationships between government officials and corporate leaders.

In Namibia, the relationship between Cabinet ministers and SOE boards is governed by the State-Owned Enterprises Governance Act 2006 (SOEGA). The Act requires that Cabinet ministers exercise oversight over SOEs through their respective ministries. However, the extent of this oversight remains a subject of debate, with some arguing that it can be overly intrusive.

The key parties involved in this matter include Leake Hangala, who chairs the Namibia Chamber of Commerce and Industry, and the new Cabinet ministers in Namibia. Practitioners advising SOE boards should monitor this development closely, as it may impact their ability to operate independently. They should also be aware of the relevant provisions under SOEGA and ensure that their clients are complying with the Act's requirements.