By Confidente Reporter
PRESIDENT Hage Geingob has defended the six percent salary increments of the public office bearers questioning whether it is fair for the Head of State to earn less than heads of parastatals and other private companies.
Geingob was responding to media reports on the public office bearers salary increments that will see him annually earn N$1,7 million, Vice President N$1,5 million, Prime Minister N$1,3 million, Deputy Prime Minister, Ministers and advisors N$1 million, Deputy Ministers and Governors N$788 366, Sam Nujoma N$1, 3 million, Hifikepunye Pohamba, National Assembly Speaker and National Council Chairperson N$1,1 million.
However, Geingob says that it is critical to compare the earnings of public office bearers to remuneration practices in the state owned enterprises and private sectors.
In comparison, Geingob said that SOEs annual guaranteed remuneration at ECB stands at N$2,6 million MVA Fund N$2,4 million, Nampower N$2,3 million, Nampost N$2,1 million, Unam N$2,1 million, SatCom and DBN N$2 million, NSFAF and NUST N$1,9, Telecom N$1,8 million, New Era Publications N$1,7 million, Namport and Environment Investment Fund N$1,6 million. CEOs at FNB Namibia and Bidvest Namibia earn N$3,5 million and N$3,1 million respectively.
“Fair remuneration wages have to be benchmarked to the market because skills and talents are mobile and would be deployed where they are best rewarded. This is also applicable to both the public and private sectors.
“Based on the above, the question should be asked whether it is fair remuneration for the President to be paid less than the heads of some state owned enterprises based on the complexity of decision making. The remuneration for private sector top executives average N$2,9 million per annum with some private sector chief executive officers earning more than N$4 million guaranteed remuneration excluding performance and other bonuses.”
Contrary to reports, Geingob said that the salary for the 2017/2018 fiscal year was approved two years earlier and only implemented on April 1 2016.
“…That increase was approved two years earlier and implemented by 1 April 2016 and as budgeted for in that year (2016) as well. The correct information is that there is no salary increase planned for 2017/18. The overall expense budget tabled by the Minister of Finance last week reflects N$62.6 billion for the financial year 2017/18.
“Out of that total budget the Public Service wage bill represents N$28.1 billion or 44.9 percent of total budget. That amount includes the personnel expenditure of Political Office Bearers. It is different from the 49 percent reported by the Minister of Finance, which amount (49 percent) is based on statutory expenditure and is therefore not the total budget. The total personnel expenditure and benefit of the Public Office Bearers (326 individuals in total) represent N$264.3 million or 0.9 percent of the total Public Service Wage Bill. Alternatively this is 0.4 percent of the total budget,” Geingob said.
Geingob further explained that, “The Cabinet Ministers expense represents N$36.3 million or 0.13 percent of the total personnel expenditure or 0.06 percent of the total budget. The Presidency represents N$13.6 million or 0.04 percent of the total personnel expenditure. Differently put it is 0.02 percent of the total budget. The seven (7) advisors in the Presidency represent N$7.4 million or 0.03 percent of the total personnel expenditure or 0.01 percent of the total budget.”
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