PDM calls for an independent audit of state-owned energy companies
The Popular Democratic Movement (PDM) is calling for an independent, comprehensive audit of Namibia’s state-owned energy companies. The proposed review should examine financial management, procurement, contracts, operational performance, governance, and the use of public assets. It should be conducted by professionals who are free from political and commercial influence, with the findings released in a form that citizens can access and understand.
Namibia’s energy sector is central to economic growth, household welfare, industrial development, and national security. Companies such as NamPower and the National Petroleum Corporation of Namibia (NAMCOR) manage resources and infrastructure that affect every community. Their decisions involve public money, long-term contracts, strategic assets, and the country’s ability to secure reliable and affordable energy.
An audit is not a declaration of wrongdoing. It is a democratic safeguard that can establish the facts, identify weaknesses, protect employees who raise concerns, and recommend corrective action. PDM believes that public confidence will be strengthened when the government treats transparency and accountability as essential requirements rather than optional commitments.
Why public oversight matters in the energy sector
State-owned enterprises operate in areas where ordinary market competition cannot always provide sufficient protection for the public interest. Energy companies may control electricity generation, transmission, fuel supply, petroleum exploration, and major infrastructure projects. Poor decisions in any of these areas can create costs that are eventually passed to taxpayers, consumers, and future generations.
A review should therefore look beyond annual financial statements. It should assess whether boards are exercising effective oversight, whether executives are appointed through transparent and merit-based processes, and whether procurement decisions deliver value for money. It should also examine related-party transactions, consultancy agreements, debt exposure, project delays, and the management of state-owned land and equipment.
PDM’s position is grounded in democratic governance. Public companies must answer to the people through Parliament, regulators, audited reports, and meaningful public disclosure. When information is delayed, incomplete, or difficult to interpret, citizens cannot properly assess whether national resources are being managed responsibly.
Transparent institutions also support social stability. The PDM has addressed the importance of lawful, accountable public administration in its response to recent events, including its police accountability statement. The same principle applies to state-owned enterprises: authority must be exercised within the law, and public institutions must remain answerable for their decisions.
What an independent audit should examine
The audit should be commissioned through a process that prevents conflicts of interest. The selected auditors should have experience in public-sector finance, energy markets, engineering projects, procurement law, and forensic review. Their appointment should be subject to parliamentary scrutiny, and the final mandate should be published before the work begins.
The review should cover a defined period long enough to identify recurring patterns rather than isolated transactions. It should include subsidiaries, joint ventures, special-purpose vehicles, contractors, and major partnerships connected to state-owned energy companies. Where commercial confidentiality is legitimate, sensitive details may be protected temporarily, but confidentiality must not become a blanket reason for withholding information.
Key areas should include:
- Financial statements, debt, guarantees, and contingent liabilities
- Procurement procedures, tender awards, variations, and emergency contracts
- Large-scale generation, transmission, fuel, and petroleum projects
- Board appointments, executive compensation, and performance agreements
- Related-party dealings and potential conflicts of interest
- Asset registers, maintenance schedules, and infrastructure losses
- Compliance with environmental, labour, competition, and public finance laws
- Customer service, tariffs, supply reliability, and regional access
The audit should also assess whether companies are meeting their development obligations. A state-owned energy enterprise should be judged by financial discipline and commercial performance, but also by reliability, affordability, local skills development, environmental responsibility, and the fair distribution of infrastructure across Namibia.
A clear process for credible findings
Public confidence depends on the credibility of the audit process from beginning to end. The government should publish the terms of reference, the selection criteria for the audit team, the expected timetable, and the institutions responsible for receiving the report. Any limitation on access to records should be recorded and explained.
Auditors should have direct access to contracts, minutes, payment records, internal controls, project files, and electronic systems. They should be able to interview directors, managers, employees, suppliers, regulators, and affected communities. Whistle-blowers and witnesses must have secure channels for providing information without retaliation.
| Audit area | Questions to be answered | Public accountability measure |
|---|---|---|
| Governance | Are boards independent, qualified, and properly supervised? | Publish board charters, attendance records, and annual performance reviews |
| Procurement | Were contracts awarded fairly and competitively? | Disclose tender decisions, variations, beneficial ownership, and exceptions |
| Finance | Are debt, guarantees, and public funds properly controlled? | Release audited accounts and explanations of material risks |
| Projects | Are major investments on budget and on schedule? | Publish milestones, cost changes, delays, and responsible authorities |
| Operations | Are consumers receiving reliable and affordable services? | Report performance indicators, outage data, and service standards |
| Ethics | Are conflicts of interest and misconduct addressed? | Establish protected reporting channels and publish enforcement outcomes |
The final report should distinguish between administrative weaknesses, poor commercial decisions, breaches of policy, and potential criminal conduct. That distinction matters. It prevents political accusations from replacing evidence while ensuring that credible allegations are referred to the appropriate law-enforcement or regulatory body.
Parliament should hold public hearings on the findings, with responsible ministers and company boards required to respond to each major recommendation. A follow-up review should take place within a fixed period. Without implementation tracking, an audit can become another report that receives attention for a few days and then disappears from public discussion.
Protecting consumers and the national interest
Energy governance is ultimately about people. Electricity interruptions, fuel shortages, high tariffs, and delayed connections affect businesses, schools, clinics, households, and local authorities. Weak management can deepen inequality because low-income families have fewer options when prices rise or services fail.
An independent audit should therefore examine how commercial decisions affect consumers. It should review tariff assumptions, connection policies, payment arrangements, loss-reduction programmes, and the quality of communication during outages or supply disruptions. Communities should have opportunities to submit evidence, particularly where energy infrastructure has been delayed or promised services have not materialised.
The review must also protect Namibia’s long-term interests in petroleum and renewable energy. Exploration agreements, local-content commitments, environmental safeguards, and revenue arrangements deserve careful scrutiny. The country needs investment and technical partnerships, but such arrangements should deliver measurable public value and preserve national control over strategic resources.
PDM supports responsible development that combines energy security with environmental stewardship. Namibia has significant potential in solar, wind, green hydrogen, and other emerging industries. Those opportunities should be pursued through transparent contracts, credible feasibility studies, strong labour standards, and safeguards against concentrating benefits in a small group of politically connected interests.
Turning audit findings into reform
An audit should lead to practical reforms rather than a cycle of public criticism and institutional inaction. Where controls are weak, companies should adopt stronger approval procedures, independent risk committees, digital procurement records, and regular compliance reviews. Where projects have failed, decision-makers should explain the causes and identify how similar failures will be prevented.
The government should also clarify the division of responsibilities among ministries, boards, regulators, and company executives. Political oversight is legitimate, but day-to-day commercial decisions require professional management and clearly defined accountability. Ministers should set public policy while boards supervise performance, and executives should be assessed against published targets.
PDM recommends that the government and Parliament:
- Commission an independent audit through an open and conflict-free process
- Publish the audit mandate, timetable, methodology, and final findings
- Require state-owned energy companies to disclose contracts and beneficial ownership where lawful
- Establish protected reporting channels for whistle-blowers and employees
- Hold public hearings and assign deadlines to every accepted recommendation
Reform should include stronger reporting to the National Assembly. Quarterly performance information could cover revenue, expenditure, debt, project progress, outages, procurement exceptions, litigation, and environmental obligations. Such reporting would allow elected representatives to identify risks before they become expensive failures.
Citizens should also have access to understandable summaries rather than technical documents alone. Public accountability is weakened when information is technically available but practically inaccessible. Plain-language explanations, community briefings, and accessible digital records would help people evaluate the performance of companies that operate with public resources.
Democratic accountability and national development
The call for an independent audit forms part of a wider commitment to transparent and participatory government. Namibia’s energy choices will influence employment, manufacturing, regional development, public revenue, and the country’s international partnerships. Decisions of this scale cannot be left to closed processes or unexplained assurances.
Strong oversight will also help Namibia present itself as a reliable investment destination. Investors, development institutions, and international partners need confidence that contracts are awarded lawfully, institutions are professionally managed, and public finances are monitored. Openness protects the country’s reputation while discouraging waste and corruption.
Accountability in domestic institutions is consistent with Namibia’s role in international affairs. The PDM has explained its support for Namibia’s UN bid in terms that include responsible leadership and respect for multilateral principles. Those principles should also guide the management of national assets: clear rules, credible oversight, peaceful dispute resolution, and respect for the public interest.
An independent audit would give the government an opportunity to demonstrate that commitment. It could identify problems before they become crises, validate effective practices, and create a factual basis for reform. It would also show citizens that public institutions do not fear scrutiny when they are acting lawfully and responsibly.
The PDM urges Parliament, civil society, workers, consumers, professional bodies, and community organisations to support a transparent review of Namibia’s state-owned energy companies. Public resources belong to the people, and the people have a right to know how those resources are managed. Support the call for an independent audit, follow the findings, participate in public oversight, and insist that every recommendation receives a clear and measurable response.