AIR Namibia board chairperson Escher Luanda says the financially troubled airline has the financial resources to afford remunerating the interim chief executive officer (CEO) Theo Mberirua.
Mberirua was appointed as the interim CEO effective from 13 July for an unspecified period.
“While we may be facing financial challenges in these difficult times, we equally value the need to have an executive as highly regarded as Mr Mberirua. We have the financial resources to compensate the interim CEO and we are fortunate that the agreed remuneration with the incumbent is within the confines of the public enterprises legislation,” Luanda said.
The appointment of Mberirua by the board was reportedly against the advice of the minister of public enterprises Leon Jooste that no CEO should be appointed while the government is investigating realignment options for the airline.
Luanda said interim CEO’s appointment was made after consultation with the shareholder “in the spirit of a harmonious working relationship”.
Mberirua’s appointment has raised eyebrows among staff.
“We thought the board has been having meetings to fix things for the better, but they were busy organising a job for someone. This appointment really surprised everyone, but the truth will come out one day,” an employee said.
“How do they expect the airline to be run profitably if they have failed to appoint a CEO in the past five years?” another employee asked.
Creditors have threatened to liquidate the company due to defaults and debts that have been haunting Air Namibia since 1998.
