Agribank ready to force out ex-CEO

AGRIBANK’S board of directors yesterday moved to assert their authority by removing a defiant former Chief Executive Officer (CEO) who has continued to run the parastatal even after his contract ended in December.

Asked about Tjeripo Hijarunguru’s employment status, Agribank Chairman Dr Franz Stellmacher yesterday confirmed that his tenure as CEO has come to an end. “He has no right to be at the office,” Stellmacher said, adding that his illegal running of Agribank “will be terminated” today.Hijarunguru has reportedly refused to recognise the authority of the board, saying he would only take orders from State House.Hijarunguru has not responded to a message left on his cellular phone for comment.When he was first appointed Managing Director of the Agricultural Bank of Namibia more than six years ago, President Sam Nujoma had the power to appoint the head of the bank under the then law.But the law has since been changed to enable the directors to appoint a CEO in consultation with the Ministers of Finance and Agriculture.In July last year, the board appointed Hijarunguru to continue acting in the post until the end of December.But Hijarunguru went on unapproved leave before Christmas after the directors had informed him about the end of his term in office and invited him to negotiate an exit package, according to well-placed Agribank employees.He has since returned from holiday to run the bank.The Agribank CEO reportedly declined to enter talks on his package, first arguing that he preferred to deal with State House, and later adding that the board did not have a quorum to take decisions.Stellmacher said that the board had met with Minister of Finance, Saara Kuugongelwa-Amadhila, yesterday.He would give no further details, saying that more information would be made available today.Some people close to Agribank’s senior management said Hijarunguru was trying to show the directors that he had political connections, particularly to President Nujoma.But he appears to have failed in a bid to be re-appointed after the board last year advertised his post twice.Stellmacher said yesterday that the board of directors has given the name of their preferred CEO to Minister Kuugongelwa-Amadhila.Two additional names have been submitted to the Minister, who would will take the issue of the appointment to Cabinet for a final decision.Hijarunguru has presided over the affirmative action loan scheme that critics say has mostly benefited the ruling elite, their cronies and other hobby farmers rather than blacks who want to be productive farmers.Esme Witt, an Agribank employee, yesterday denied that the staff members were confused and demoralised by Hijarunguru’s unexplained presence [as reported in The Namibian on Wednesday].”I’m positive with regards to Agribank’s future, I’m not demoralised, I’m not confused and a few of my colleague agree with me,” said Witt.Several other employees, who asked for anonymity for fear of being victimised, have complained about Hijarunguru’s management style.”He has no right to be at the office,” Stellmacher said, adding that his illegal running of Agribank “will be terminated” today. Hijarunguru has reportedly refused to recognise the authority of the board, saying he would only take orders from State House. Hijarunguru has not responded to a message left on his cellular phone for comment. When he was first appointed Managing Director of the Agricultural Bank of Namibia more than six years ago, President Sam Nujoma had the power to appoint the head of the bank under the then law. But the law has since been changed to enable the directors to appoint a CEO in consultation with the Ministers of Finance and Agriculture. In July last year, the board appointed Hijarunguru to continue acting in the post until the end of December. But Hijarunguru went on unapproved leave before Christmas after the directors had informed him about the end of his term in office and invited him to negotiate an exit package, according to well-placed Agribank employees. He has since returned from holiday to run the bank. The Agribank CEO reportedly declined to enter talks on his package, first arguing that he preferred to deal with State House, and later adding that the board did not have a quorum to take decisions. Stellmacher said that the board had met with Minister of Finance, Saara Kuugongelwa-Amadhila, yesterday. He would give no further details, saying that more information would be made available today. Some people close to Agribank’s senior management said Hijarunguru was trying to show the directors that he had political connections, particularly to President Nujoma. But he appears to have failed in a bid to be re-appointed after the board last year advertised his post twice. Stellmacher said yesterday that the board of directors has given the name of their preferred CEO to Minister Kuugongelwa-Amadhila. Two additional names have been submitted to the Minister, who would will take the issue of the appointment to Cabinet for a final decision. Hijarunguru has presided over the affirmative action loan scheme that critics say has mostly benefited the ruling elite, their cronies and other hobby farmers rather than blacks who want to be productive farmers. Esme Witt, an Agribank employee, yesterday denied that the staff members were confused and demoralised by Hijarunguru’s unexplained presence [as reported in The Namibian on Wednesday]. “I’m positive with regards to Agribank’s future, I’m not demoralised, I’m not confused and a few of my colleague agree with me,” said Witt. Several other employees, who asked for anonymity for fear of being victimised, have complained about Hijarunguru’s management style.