CABINET has announced that it is moving forward with plans to dismantle Namibia Post and Telecom Holdings (NPTH), the holding company of MTC, Telecom and NamPost.
The move will enable the various subsidiaries to report directly to the government.
The decision was taken during its 14th Cabinet decision-making meeting that was held on 19 August 2021.
NPTH is a commercial public entity and is the holding company of Telecom Namibia Limited (Telecom), Namibia Post Limited (NamPost), and Mobile Telecommunications Ltd (MTC).
In its statement, Cabinet announced the plan, which was submitted by the Minister of Finance Ipumbu Shiimi.
The finance minister approved the decision because the three subsidiaries will work from strengthened balance sheets when assets are transferred.
The dismantling will also mean that dividends will be declared directly to the Treasury.
The Cabinet further resolved that the Ministry of Public Enterprises should ensure the optimal and prudent utilisation of funds earmarked for the dismantling project plan.
Cabinet also directed the Ministry of Public Enterprise to ensure that transfer or integration of affected employees must be identified by NPTH subsidiary companies is prioritised during the dismantling process.
Queried on the dismantling, Minister of Public Enterprises, Leon Jooste, noted that 25 workers will be retrenched during the dismantling process.
Jooste further noted that the intention is not to retrench workers but to rather have them absorbed in the subsidiaries.
