Africa-Press – Namibia. CHARMAINE NGATJIHEUE and NOMHLE KANGOOTUI
TRANSNAMIB has further descended into chaos after two senior board members, including the chairperson, resigned, citing irreconcilable differences.
• CHARMAINE NGATJIHEUE and NOMHLE KANGOOTUI
TRANSNAMIB has further descended into chaos after two senior board members, including the chairperson, resigned, citing irreconcilable differences.
This comes amid threats of industrial action by the workers early this week. A balloting process by the Namibia Transport and Allied Union showed that 726 TransNamib workers out of 788 voted in favour of a strike.
Both the chairperson Lionel Matthews and vice chairperson Sigrid Tjijorokisa on Wednesday submitted their resignations to finance minister and acting public enterprises minister Iipumbu Shiimi. The two senior executives resigned after a board meeting on Wednesday where they butted heads.
Matthews cited the continued demand to remove the current chief executive officer Johny Smith and some executives by the union based on an Ernst and Young report that is still not finalised as one of the reasons he is resigning.
In line with that, the outgoing chairperson, who doubled up as the holding company’s director, added that Tjijorokisa shared the same view, although implicitly because of the fights between her (Tjijorokisa) and Smith over the past three years.
“The deputy chair is of the view that the board is compromised to decide to renew the contract of the chief executive officer for another five years. A view that I disagree with,” he said in a resignation letter to Shiimi.
Matthews also accused Tjijorokisa of having made some personal attacks and what appears to be slanderous remarks towards a particular director.
“I will not allow my reputation and my character to be drawn into question by the union in public. I was appointed on 8 February 2022, and where TransNamib is, is not my doing; it is the mismanagement that happened by those who came before me,” he noted.
Matthews declined to comment when approached by The Namibian.
Meanwhile, Tjijorokisa stated that one of the reasons for her resignation is that the current board is no longer acting in the best interest of the organisation, nor are the directors exercising their fiduciary obligations.
She further alleged that the report by financial services company Ernst and Young to investigate certain irregularities within the organisation was handed over to the new chairperson (Matthews) but he chose not to share this report with the board.
“This was condoned by the board in a meeting with the Department of Public Enterprises against my objection. It is my firm view that a board that governs while being aware of material irregularities by senior executives is not a board,” she added in her resignation letter.
She also mentioned her objection to the other board members’ decision not to advertise the chief executive officer’s position.
“Likewise, a decision to renew cannot be based on the DBSA terms sheet and loan that may be compromised if we do not renew the contract of the CE. To the contrary, it is my view that the DBSA would welcome such a decision where material irregularities have occurred.
“I am very concerned about the fiduciary accountability as a board and not sharing true facts with DBSA or DBN. As a director, I can be held personally and criminally accountable if information, which may have induced this financial institution to exercise its discretion in a certain way, was withheld,” she noted.
The outgoing vice chairperson went on to say she is willing to reconsider her position provided the current board is removed and a new board is appointed that embraces proper governance principles.
Similar to Matthews, she declined to comment, but said: “I’m disappointed that private communication by me to the minister has been compromised.”
The acting executive director of public enterprises, Ndiitah Nghipondoka-Robiati, confirmed the resignations, saying they are busy working on the way forward.
“As you might be aware, the term of the current board is coming to an end. So, we are busy putting a recommendation through to the Cabinet to not extend their term,” she said.
This comes amid threats of industrial action by the workers early this week. A balloting process by the Namibia Transport and Allied Union showed that 726 TransNamib workers out of 788 voted in favour of a strike.
Both the chairperson Lionel Matthews and vice chairperson Sigrid Tjijorokisa on Wednesday submitted their resignations to finance minister and acting public enterprises minister Iipumbu Shiimi. The two senior executives resigned after a board meeting on Wednesday where they butted heads.
Matthews cited the continued demand to remove the current chief executive officer Johny Smith and some executives by the union based on an Ernst and Young report that is still not finalised as one of the reasons he is resigning.
In line with that, the outgoing chairperson, who doubled up as the holding company’s director, added that Tjijorokisa shared the same view, although implicitly because of the fights between her (Tjijorokisa) and Smith over the past three years.
“The deputy chair is of the view that the board is compromised to decide to renew the contract of the chief executive officer for another five years. A view that I disagree with,” he said in a resignation letter to Shiimi.
Matthews also accused Tjijorokisa of having made some personal attacks and what appears to be slanderous remarks towards a particular director.
“I will not allow my reputation and my character to be drawn into question by the union in public. I was appointed on 8 February 2022, and where TransNamib is, is not my doing; it is the mismanagement that happened by those who came before me,” he noted.
Matthews declined to comment when approached by The Namibian.
Meanwhile, Tjijorokisa stated that one of the reasons for her resignation is that the current board is no longer acting in the best interest of the organisation, nor are the directors exercising their fiduciary obligations.
She further alleged that the report by financial services company Ernst and Young to investigate certain irregularities within the organisation was handed over to the new chairperson (Matthews) but he chose not to share this report with the board.
“This was condoned by the board in a meeting with the Department of Public Enterprises against my objection. It is my firm view that a board that governs while being aware of material irregularities by senior executives is not a board,” she added in her resignation letter.
She also mentioned her objection to the other board members’ decision not to advertise the chief executive officer’s position.
“Likewise, a decision to renew cannot be based on the DBSA terms sheet and loan that may be compromised if we do not renew the contract of the CE. To the contrary, it is my view that the DBSA would welcome such a decision where material irregularities have occurred.
“I am very concerned about the fiduciary accountability as a board and not sharing true facts with DBSA or DBN. As a director, I can be held personally and criminally accountable if information, which may have induced this financial institution to exercise its discretion in a certain way, was withheld,” she noted.
The outgoing vice chairperson went on to say she is willing to reconsider her position provided the current board is removed and a new board is appointed that embraces proper governance principles.
Similar to Matthews, she declined to comment, but said: “I’m disappointed that private communication by me to the minister has been compromised.”
The acting executive director of public enterprises, Ndiitah Nghipondoka-Robiati, confirmed the resignations, saying they are busy working on the way forward.
“As you might be aware, the term of the current board is coming to an end. So, we are busy putting a recommendation through to the Cabinet to not extend their term,” she said.
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