You Are Here: FrontPage Local News


Wednesday, September 17, 2003 - Web posted at 7:21:33 GMT

AirNam board snubs Cabinet directive

LINDSAY DENTLINGER

AIR Namibia has shrugged off a Cabinet Committee directive instructing it to halt all activities seen by Government as contributing to poor financial performance.

Approached for comment, Chairman of the State-owned airline, Vekuii Rukoro, told The Namibian yesterday that the board took "strong exception" to Government attempts to meddle in its affairs.

The Namibian has learned that Trade and Industry Minister, Jesaya Nyamu, who is Chairman of the Cabinet Committee on Economic Development and Parastatals, issued a written instruction to Air Namibia's Managing Director, Gernot Riedel, to implement "cost-cutting measures" at the airline.

"We don't like the way he is basically interfering in a matter that squarely falls on management.

Not even the board would want to meddle like that," said Rukoro.

He declined to detail exactly what Minister Nyamu had ordered to be halted.

But sources indicated that Air Namibia had been told not to fill existing vacancies, especially the recently advertised post of Commercial Marketing Senior Manager, which has been filled in an acting capacity for almost two years.

The Cabinet Committee has also attempted to put a stop to the recruitment of consultants without the prior consent of a special technical committee set up by Cabinet to review Air Namibia's business plan.

Nyamu is out of the country and was not available for comment yesterday.

Rukoro would not speculate on the reason for the Cabinet Committee's directive, other than to say that it "doesn't make sense to the board", and that Nyamu might be "misinformed" about Air Namibia's situation.

The board chairman also confirmed that Air Namibia directors had informed the Cabinet Committee that it would not heed the instructions.

Sources indicated that the board believed that the company's management should take its directives from them, and that by stepping in, Government is undermining their authority.

The national carrier has said that, over the past year, it has dramatically turned around the company's sad financial state and has reduced its operating losses by more than N$60 million this year.

At present, Air Namibia is awaiting a Cabinet decision on the two business plans it submitted a few months ago aimed at further helping the airline reverse its loss-making trend.

Local News

•  Summary
•  Headlines
•  Forums
•  Email this story
•  Printer friendly


Local News Headlines Of The Last 48 Hours


 

Advertise | About Us | Contact Us | Subscribe | Privacy | Terms Of Service | Guestbook

Material on this site copyright The Free Press Of Namibia (Pty) Ltd
PO Box 20783 - Windhoek - 42 John Meinert Street
Tel: +264 (61) 236970 - Fax: +264 (61) 233980

Back To Top