Africa-Press – Namibia. AIR Namibia’s liquidation account does not have sufficient funds to pay the parastatal’s former employees their severance packages or other claims.
Joint liquidators David Bruni and Ian McLaren have, however, so far only managed to pay the former workers their 12-months’ salaries, which amounted to about N$278 million.
Meanwhile, the former employees are owed roughly N$105 million in severance packages, which include leave days and pension. As a result of the approved liquidation in February, about 636 staff members lost their jobs, as well as 4 500 related workers.
The workers have since approached the Labour Court, with the liquidators being the first respondents, followed by the government. The case will be heard on 19 October.
In leaked communication dated 20 September, Bruni & McLaren said the liquidation account currently does not have sufficient funds to settle former employees’ claims. The severance packages are dependent on the Air Namibia assets yet to be sold, the liquidators said.
“We would like to reassure all ex-Air Namibia employees that they remain the preferred creditor in respect of any remuneration due or monies payable. These monies will be paid after the Master of the High Court reviews the employee claims and funds are available in the liquidation account,” they said.
They said the committee and their team deliberated on the meaning of the word ‘remuneration’ in the context of calculating the severance packages, and it was agreed that a team from Bruni & McLaren would consult with their principals and revert to the stakeholders.
“We hereby wish to inform the committee that Bruni & McLaren stands by its interpretation of the word remuneration as discussed in the meeting, which refers to basic plus and includes basic salaries and all other allowances, excluding benefits,” the letter read.
Minister of public enterprises Leon Jooste last week confirmed that the ministry is aware of the fact that the severance packages have not been paid out as yet, and said the liquidators had informed him of this verbally.
He said the liquidators have indicated several potential buyers are interested in Air Namibia’s assets. “But since the company is under liquidation, the government may not intervene. The employees enjoy preference before any creditors, and will receive their severance packages as soon as assets are sold.
“I receive regular updates from the liquidators, and they have indicated that there is interest from potential buyers for some of the assets,” the minister said.
Air Namibia’s liquidators say the defunct state-owned airline’s liabilities currently stand at N$3,5 billion, of which roughly N$693 million involves unpaid taxes.
These figures are contained in a report dated 4 August, compiled by Bruni & McLaren. The biggest lump of the company’s debt involves about N$2,3 billion to trade creditors.
Bank loans worth N$408,7 million were extended to the airline, and at the time the report was compiled, Air Namibia still owed former employees N$105,51 million in severance packages.
Some workers, who spoke to The Namibian on condition of anonymity, say they have received ex-gratia payments by the end of July, but life is tough because most of them do not have another source of income. Some claim they are unemployable due to their age. They also say they feel betrayed by various unions, which did not have their interests at heart.
