•  December 2000February 2001 Local News Headlines

Tuesday, February 27, 2001 - Web posted at 9:23:49 AM GMT

Troubled TransNamib may shed workers
CHRISTOF MALETSKY

WORKERS at TransNamib Holdings Limited may face retrenchments as the corporation continues to cut down on expenditure in a bid to reverse its recent poor financial performance.

Sources at the company told The Namibian it was likely that the parastatal would have to go back on a decision not to lay off workers.

However, Corporate and Public Affairs Assistant Manager, Bernhardt Gaeb, said he was not aware of any impending retrenchments.

TransNamib is expected to fall short of its targeted financial results for the 2000-01 financial year, although the projected loss may represent an improvement over the previous year.

Sources said ongoing investigations by an international consortium of consultants led by Deloitte & Touche had raised question marks about the company's future viability.

The Board of TransNamib appointed the international consortium of consultants in January this year and they are scheduled to report their findings to the Board by March 8.

The independent team is analysing the company's efficiency, operational-performance management, organisational structure, and the extent to which customer requirements are met.

The appropriateness and coherence of the company's business strategies in the context of market and competitive prospects will also come under scrutiny.

The Board, chaired by Vivienne Graig-McLaren, will afterwards introduce a rigorous performance management system.

Under the new performance system every manager will be held directly accountable for the targeted business results in his or her area.

Graig-McLaren said positive performances would be suitably rewarded while sustained failure to achieve would meet with concerted action.

She warned that there should be no doubt as to the seriousness of the Board's intention to restore the viability and credibility of TransNamib Holdings Limited."

"The company has to become financially self-sustainable if it is to survive and prosper," she said.

In the past Air Namibia was the main drain on TransNamib monies.

TransNamib embarked on a retrenchment-early retirement exercise in 1999 which resulted in a saving of up to N$22 million.

Some 500 employees left the company and their packages cost around N$19,2 million.