The Minister of Urban and Rural Development, James Sankwasa, has warned NORED's leadership that the chronic governance failures and financial opacity could force local authorities to dismantle it entirely.
The regional and local authorities met with Nored and deliberated on pertinent issues pertaining to their survival as shareholders.
"It was by letter dated 27 August 2026 that Oshana Regional Council addressed consents to my office, and after studying that letter, I realised we're dealing with an elephant, so we have to choose how to eat this elephant. So I thank you, Oshana, for raising this matter. Your proactive approach reflects dedication to transparency, sound governance and robust financial management in our sub-national government."
Sankwasa said year in and year out, the Auditor General has expressed not-so-good opinions about the management of Nored.
"For several years audit reports issued by the Office of the Auditor General have identified the recurring deficiencies in the recognition, classification, valuation and supporting documentation of shareholding and investment interest held by regional councils and local authorities in Nored. Through the regional council electricity company and the local authority electricity company, which are statutory bodies or juristic persons, this recurring qualification of qualified reports is a cause for concern."
Sankwasa said Nored must guarantee that there is effective compliance with the statutory provisions that must ensure that appropriate criteria are set.
"Therefore today and tomorrow we have to zoom into and resolve any overdue ambiguities and establish a clear, documented and implementable solution going forward. This engagement aims to define and agree on the following but not the last and the only legal and historical basis."
Alfeus Abraham is the chairperson of the Oshana Regional Council, who reiterated, "We hope to emerge from this meeting with a clear resolution, assigned responsibility, and realistic timeline for implementation. In conclusion, Honourable Minister, I wish to encourage all participants to engage openly and constructively, and with shared commitment, to find a practical resolution on the issue."