Agribank CEO defiant

THE Chairman of Agribank has accused Government of interfering with the directors’ duties as a CEO, whose contract has expired, continued to administer the company.

Declaring today as the day for “final confrontation”, Dr Franz Stellmacher said yesterday that the board of directors will hold “a combined meeting” with Finance Minister Saara Kuugongelwa-Amadhila and the Minister of Agriculture, Water and Rural Development, Helmut Angula, to end the defiance by former CEO, Tjeripo Hijarunguru, and appoint a new CEO. Hijarunguru told The Namibian that Stellmacher wrote him a letter yesterday morning ordering him to vacate the offices of the Agricultural Bank of Namibia by 10h00.He wrote back to the board vowing to continue in office and questioned the validity of the decision not to renew his contract, which ended on December 31 2003.”The details are covered in my letter to the Chairman,” said Hijarunguru, declining to say whether or not he had hired lawyers to fight his case.Hijarunguru has allegedly argued that the board did not have a quorum when it decided to let his contract expire.An acting CEO had been appointed, but Stellmacher said the Minister of Finance, from whom the board must get approval, had stalled on the matter.”The board is non-functional … ,” said Stellmacher.He said corporate governance required that “the shareholders select the board” whose responsibilities were to look after the operation of the company.”Here the shareholders are running the company, but they [also] want the board to be accountable, and it does not work that way,” said Stellmacher.Some senior managers with Agribank said Kuugongelwa-Amadhila appeared to be frustrating the directors by not taking to Cabinet last year the names of three new candidates for the CEO post.Hijarunguru is not on the list.The ousted CEO yesterday denied, for the first time, that he had let it be known that he would take orders only from State House and not from the board of directors.”I have not said it anywhere or at any board meeting.That person who said it must come out,” charged Hijarunguru.Stellmacher said “nobody can define State House for me”.He said the [Agribank] Act mentions the Ministers of Finance and Agriculture and not “State House people”.Hijarunguru’s first appointment as Agribank Managing Director more than six years ago was made by the President.His term was extended by the board twice.Kuugongelwa-Amadhila said in a statement to The Namibian yesterday that the board’s “proposals would be given urgent consideration”.Asked about what is being perceived as tacit backing for Hijarunguru, the Finance Minister said “there was never any refusal on my part to meet with Agribank board”.”With regard to the issues, concerning Mr Hijarunguru, the board has been directed to ensure that a situation of orderliness continues to prevail at the bank, and the bank continues to operate smoothly and without any hindrance,” said Kuugongelwa-Amadhila.Stellmacher said the Minister had indeed told the board to ensure the “smooth running” of the parastatal, but added: “For a few days until the matter is finalised, there is a void.We insisted on an answer” from the Minister on Thursday, but that may only come today.Hijarunguru told The Namibian that Stellmacher wrote him a letter yesterday morning ordering him to vacate the offices of the Agricultural Bank of Namibia by 10h00. He wrote back to the board vowing to continue in office and questioned the validity of the decision not to renew his contract, which ended on December 31 2003. “The details are covered in my letter to the Chairman,” said Hijarunguru, declining to say whether or not he had hired lawyers to fight his case. Hijarunguru has allegedly argued that the board did not have a quorum when it decided to let his contract expire. An acting CEO had been appointed, but Stellmacher said the Minister of Finance, from whom the board must get approval, had stalled on the matter. “The board is non-functional … ,” said Stellmacher. He said corporate governance required that “the shareholders select the board” whose responsibilities were to look after the operation of the company. “Here the shareholders are running the company, but they [also] want the board to be accountable, and it does not work that way,” said Stellmacher. Some senior managers with Agribank said Kuugongelwa-Amadhila appeared to be frustrating the directors by not taking to Cabinet last year the names of three new candidates for the CEO post. Hijarunguru is not on the list. The ousted CEO yesterday denied, for the first time, that he had let it be known that he would take orders only from State House and not from the board of directors. “I have not said it anywhere or at any board meeting. That person who said it must come out,” charged Hijarunguru. Stellmacher said “nobody can define State House for me”. He said the [Agribank] Act mentions the Ministers of Finance and Agriculture and not “State House people”. Hijarunguru’s first appointment as Agribank Managing Director more than six years ago was made by the President. His term was extended by the board twice. Kuugongelwa-Amadhila said in a statement to The Namibian yesterday that the board’s “proposals would be given urgent consideration”. Asked about what is being perceived as tacit backing for Hijarunguru, the Finance Minister said “there was never any refusal on my part to meet with Agribank board”. “With regard to the issues, concerning Mr Hijarunguru, the board has been directed to ensure that a situation of orderliness continues to prevail at the bank, and the bank continues to operate smoothly and without any hindrance,” said Kuugongelwa-Amadhila. Stellmacher said the Minister had indeed told the board to ensure the “smooth running” of the parastatal, but added: “For a few days until the matter is finalised, there is a void. We insisted on an answer” from the Minister on Thursday, but that may only come today.