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Friday, April 26, 2002 - Web posted at 7:33:44 pm GMT

IN a surprise turnaround yesterday, the National Union of Namibian Workers (NUNW) said it had relinquished its 10 per cent shareholding in the new privatised Air Namibia.

The announcement, which throws the spotlight on divisions in the trade union federation hierarchy, was made by NUNW President, Risto Kapenda at a press conference in Windhoek.

It comes in the wake of the trade union federation's Central Executive Committee (CEC) meeting held last Saturday.

The NUNW's investment arm, Labour Investment Holdings (LIH), had already appointed the unions former Secretary General, Ranga Haikali, to take up the position of Human Resources Manager in the privatised Air Namibia. Yesterday's announcement threw the arrangement into disarray.

Finance Minister Nangolo Mbumba, who is Air Namibia's shareholder Minister, told The Namibian yesterday that the NUNW had informed him of the decision.

"We respect their decision but it did not come as a surprise to us. We will try to solve that problem," Mbumba said.

The Minister said Government will continue with the restructuring of Air Namibia despite the NUNW's decision not to be party to the process.

Air Namibia's acting Chief Executive, Gernot Riedel, also confirmed knowledge of the NUNW withdrawal.

However, he said the airline would look for another "new (Namibian) partner", who would represent an empowerment group.

In a statement yesterday, Air Namibia said the board of LIH, via its Chairman Alpheus Muheua, had initially communicated in writing its acceptance of the offer of stake in the airline to its Chairman Vekuii Rukoro.

"However in the course of this week, we learned unofficially (which have subsequently been confirmed) that LIH is no longer in a position to continue with its participation in the new national airline of the Republic, on the grounds of the NUNW's opposition to privatisation," Air Namibia's statement said.

The NUNW has been grappling with the thorny question of privatisation - its recent acceptance of the 10 per cent shareholding in the ailing airline coming as a shock in the wake of worker opposition to privatisation.

Union President Kapenda said yesterday that the NUNW had returned to its earlier position on privatisation and Saturday's CEC meeting had "resolved to vehemently reject Government's attempt to privatise Air Namibia and any of the other State-owned enterprises".

"We do not want to participate in a venture that may dump the Namibian worker on the streets. We appreciate the offer but we can't take it. We say thanks, but no thanks,"Kapenda said.

Haikali, who had already accepted the position of Human Resources Manager at Air Namibia, said he would write to Air Namibia informing the airline of the NUNW's decision to withdraw him from the post.

Government, the sole owner of Air Namibia, had said that from July 1 2002 it would shed its shares in the airline and only retain a 25 per cent stake in the privatised airline.

According to the proposal currently on the table, South African Airlink will have the majority shareholding in Air Namibia (40 per cent), local aviation company, Comav,would take up 15 per cent with the LIH taking 10 per cent.

The LIH, Kapenda said, had not only been instructed to withdraw from the Air Namibia deal, but the union had categorically rejected the 10 per cent shareholding it was offered.

A six-person committee, headed by Kapenda, has been appointed to seek an audience with Air Namibia as well top political leadership in a bid to reverse the privatisation of the airline.