…all performance bonuses to require his approval
Works and Transport Minister Veikko Nekundi has declared that taxpayers should not fund performance bonuses for executives and employees who simply fulfil the duties they were hired to perform, as he announced tighter controls over incentive payments across public entities under his ministry.
Speaking during the appointment of the boards of the Namibia Airports Company (NAC) and the Public Assets Management Agency (PAMA), Nekundi said annual salaries are intended to compensate employees for carrying out the responsibilities set out in their employment contracts.
He said performance bonuses should only be paid where there is clear evidence of exceptional results that create measurable value for the public.
“We cannot give performance bonuses at the end of the year simply for doing basic duties. If there is no exceptional performance, there will be no performance bonus. Delivering only what is outlined in your job description does not qualify for a bonus. That is what your monthly salary covers,” Nekundi said.
The minister announced that no public enterprise under the Ministry of Works and Transport will be permitted to pay performance bonuses without his prior written approval.
Boards and executives seeking approval will be required to present evidence that the proposed bonuses are justified by outstanding organisational performance.
“No performance bonuses will be issued unless they are first submitted to me, and you convince me that they were truly earned,” he said.
Nekundi said public enterprises must move away from a culture of entitlement and demonstrate commercial discipline and accountability.
He warned the newly appointed board of the Public Assets Management Agency (PAMA) that the agency is expected to become financially self-sustaining.
“PAMA is established as a commercial, profit-oriented public entity. We will not bail you out. We will provide the initial seed capital, and from there, you must manage it effectively. One of your key performance indicators is to break even and turn a profit. If you perform below that standard, you must bring your resignation letter. Otherwise, I will step in myself,” he said.
The minister said the same expectations apply to the Namibia Airports Company, NamPort, TransNamib and the Roads Contractor Company, adding that public entities must deliver value for money and that performance rewards should reflect exceptional achievement rather than routine work.
