Africa-Press – Namibia. THE finance executive of the National Petroleum Corporation of Namibia (Namcor), Jennifer Hamukwaya, is suing the state-owned oil company for failing to extend her contract without considering her performance.
Namcor’s managing director, Immanuel Mulunga, appointed Hamukwaya in April 2018 on a five-year contract at N$88 000 a month.
Her salary later increased to N$180 000 a month.
Hamukwaya is considered one of Mulunga’s trusted lieutenants at the national oil company, which is currently faced with concerns over irregularities, including a questionable payment of around N$100 million by Mulunga.
Mulunga’s other alleged ally is Namcor’s logistics chief, Cedric Willemse, who is also under fire for alleged irregularities regarding the use of oil worth N$69 million.
He has denied any wrongdoing.
The finance executive role is part of the current alleged power struggle at Namcor.
Hamukwaya’s contract expires on 30 April, and includes a clause stating that Namcor must notify her three months prior to this whether she would be retained based on her performance.
A Namcor board meeting held on 27 January resolved not to extend Hamukwaya’s contract.
“. . . resolved that the executive be given written notice to communicate its decision at a meeting to be held on Monday, 30 January 2023, and that the managing director, the board chairperson, and the human resource board committee chairperson be present at the meeting,” the board said.
Mulunga wrote Hamukwaya a letter on 30 January informing her that her last day of work would be 30 April.
She received the letter on 3 February since she was not at work at the time.
Hamukwaya’s lawyer, Francois Bangamwabo, sent Mulunga a letter on 6 March, saying that the board’s refusal to extend her contract is irrational.
Minister of finance and public enterprises Iipumbu Shiimi and Namcor board chairperson Jennifer Comalie were copied in on the letter.
“It is our instruction that despite our client’s excellent and positive performance and recommendations from both the managing director and human resources, respectively, our client received a notice dated 30 January 2023 purporting to terminate her employment contract by effluxion of time,” Bangamwabo wrote.
Hamukwaya filed documents at the High Court this month explaining why the board’s decision should be overturned.
“I submit that over the period of my employment with the company, my performance was beyond satisfactory as I have an average score of 65% on the scorecards,” she states.
She says the board should have made its decision based on her performance, as stated in her contract.
Although the decision to reappoint executives lies within the accounting officers’ powers, the board decided to go against Mulunga’s recommendation, she states.
Shiimi is said to have thrown his weight behind the board, despite issuing a directive in June 2021 which empowers parastatal chiefs to choose their management.
Those in the know say the board gave Shiimi a compelling case highlighting Hamukwaya’s alleged shortcomings and why she should be shown the door.
Shiimi has been accused of siding with Comalie.
Mulunga this week declined to comment on the matter.
GOLDEN HANDSHAKE REJECTED
Hamukwaya started off on a salary of N$88 000 per month, according to the employment contract she signed in 2018.
She currently earns N$180 000 a month.
The Namcor board meeting of 27 January resolved that Hamukwaya be given an option to either continue to work or not during the notice period.
“Option 1: gratuity, plus payment of three-months’ notice period, and an additional amount to fill the gap between that payment and her 12-months’ annual salary.
“Option 2: gratuity, plus the payment of three months’ notice period, and an additional 12 months’ salary,” the board’s resolution reads.
Hamukwaya has declined both options.
The board again wrote a letter to Hamukwaya, dated 6 February, providing her with an exit offer of N$1,6 million.
Shiimi explains
Shiimi in June 2021 warned all parastatal boards to refrain from the recruitment of senior executive managers.
“It has come to my attention that some board members have opted to take over the recruitment process of senior executive managers, something I have found to be out of the ordinary,” Shiimi said at the time.
He added: “I therefore write to direct that board members refrain from participating in appointing staff members of the institution, with the exception of the chief executive officer, unless it is a specific requirement of the law governing that institution.
“Good governance principles dictate that the appointment of staff members is the responsibility of the CEO.”
Shiimi on Tuesday said the board has good reasons to get involved in Hamukwaya’s contract.
“Yes, indeed, under normal circumstances, I advise board members to leave the recruitment of the executive management to the CEO, except if the board has good reason to get involved.
“In the case of Namcor, the company’s internal policy dictates that the board should get involved in the recruitment process,” Smiimi said.
He added: “In addition, the board believes they have good reason to get involved given the situation on the ground. The board has the ultimate responsibility to ensure that Namcor remains sustainable. Despite this, I have, however, advised the board to ensure that a due and fair process is always followed.”
In December last year, Mulunga wrote to finance executive director Titus Ndove, asking for a clarification on the role of boards in the appointment of executive management.
“Our delegation of authority dictates that the appointment of executives who report to the managing director must be approved by the board. We were always under the assumption that this is a practice at all state-owned enterprises (SOEs),” Mulunga said.
He added: “To ensure our policies and delegation of authority are in compliance with the Public Enterprises Governance Act, we will therefore appreciate it if you can provide us with clear guidelines as to whether the board should approve executive appointments or play any part in the recruitment, appointment or reappointment of executives.”
Ndove responded, advising that Namcor revise its delegation of authority and recruitment policies.
He also urged the board to refrain from directly participating in the recruitment of executives.
“It is essential to avoid a situation in which the board prescribes to the CEO whom to appoint. The CEO is empowered to recruit, whereas the direct involvement rather than oversight of the board would be in breach of the established governance boundaries,” Ndove said.
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