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Performance of Namibian SoE’s

Performance of Namibian SoE’s. A Corporate Governance Perspective Daniel Motinga FNB Group Economics. Aligning broad stakeholder interest Ensure that firms are run to the benefit of all stakeholders

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Performance of Namibian SoE’s

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  1. Performance of Namibian SoE’s A Corporate Governance Perspective Daniel Motinga FNB Group Economics

  2. Aligning broad stakeholder interest • Ensure that firms are run to the benefit of all stakeholders • Relationship btw internal governance and society’s conception of corporate social accountability • Ultimately to overcome problems of agency in terms of the separation of ownership and control Corporate Governance Defined

  3. King III Perspective on Corp Gov

  4. Integrated annual report • Focus on economic, environment and social spheres • Audit committees • Internal Audit • Formal risk management processes New King III Requirements

  5. Timely disclosure a challenge for SoE’s – no consequences

  6. Tax payer support increased

  7. Disclosure of annual financial information • Operational efficiency • Openness and transparency • Timely disclosure on all material matters • Board selection and value add • Contribution to strategic direction • Dependence on tax payer support • Operational sustainability • Going concern status • Ready for Risk based management • Do we have the right skills? Key unresolved issues

  8. Disclosure should become non-negotiable • Accountability and transparency • Timely, regular and reliable • Financial, environmental and social (triple bottom-line) • Independence of board of directors • Management and political control • Balanced private & public enterprise • Identify winners and losers • Net contribution to total economy Food for thought

  9. Size of board and intensity positively impacts performance • Range of expertise/ merit appointments • Less dominance by CEO • Board meeting frequency does not necessarily enhance performance • Higher frequency implies crisis • Audit committee characteristics are supportive of performance • Presence of AC serves as an assurance mechanism to promote fairness and transparency • Independence of an audit comm’t not significant in performance enhancement • Frequency of audit comm’t meetings has a positive and significant impact on performance Cross Country Research Support (SA, Ghana, Nigeria, Kenya) – Jour St Ec & Econometrics, 2008.

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