Cabinet acted unlawfully in Meatco ceo saga – legal opinion

THE Cabinet’s decision to ask the Meat Corporation of Namibia (Meatco) board to renew the contract of its former chief executive, Mwilima Mushokabanji, was unlawful, says a legal opinion the board got on 9 April.

The opinion comes while key figures, including president Netumbo Nandi-Ndaitwah, recently backed Mushokabanji’s return.

“Cabinet and the minister of agriculture, fisheries, water and land reform issued the directive

that Meatco must renew the contract of employment of Mwilima Mushokabanji.

They acted unlawfully in that they have no powers in law to make such directives,” the legal opinion from lawyer Norman Tjombe’s firm, Tjombe Incorporated, says.

He argues that Cabinet has no role to play in the chief executive’s appointment or contract renewal.

“Simply put, the Cabinet and the minister prefer a different course of action – that the process of the recruitment of a chief executive officer (CEO) be halted and that the contract of employment of the previous CEO be renewed.

“However, the preferences of the Cabinet and the minister of agriculture, fisheries, water and land reform remain preferences, and are not law,” the opinion reads.

Yesterday, former Meatco board chairperson Sakaria Nghikembua resigned from the board, citing unlawful government directives that are not in the best interest of the state owned meat company.

‘WITHDRAW DIRECTIVE’

The legal opinion further argued that Meatco did not act unlawfully when it did not renew the contract of employment of Mushokabanji or when it resolved to commence the process of recruiting a CEO.

“The options to Meatco are to attempt to convince Cabinet and the minister of agriculture, fisheries, water and land reform of the lawfulness of the position of Meatco and seek the withdrawal of the directive, failing which Meatco should carefully consider to approach the High Court of Namibia for an order to review and set aside the directive as being unlawful and contrary to the law.

“Further, the non-renewal of the contract of employment of the former CEO of Meatco is not contrary to the contractual rights of the former incumbent or his rights under the Labour Act,” the opinion says.

Mushokabanji was let go on 31 January after the board of Meatco resolved to appoint Patrick Liebenberg as acting CEO for a period of six months, or until a substantive CEO has been appointed.

Liebenberg’s appointment was effective from 1 February.

‘MISMANAGEMENT, DISAPPEARING CATTLE’

However, there appears to be a campaign to oust Liebenberg, following an investigation into his alleged role in the disappearance of 400 cattle.
This onslaught is allegedly being led from within Meatco.

Liebenberg is also facing allegations including discriminatory practices and mismanagement, according to an internal letter dated 10 June.

The letter was handed over by Joseph Kambala, shop steward chairperson, on behalf of Meatco employees.

“There is growing alarm over the mismanagement of Meatco’s assets, particularly within the Livestock Procurement Department.

Reports indicate that more than 400 cattle have gone missing in the hands of the acting CEO and friends,” the letter says.

Kambala said such negligence threatens the company’s integrity and financial stability, which may affect the employees, stakeholders and the broader future of the company.

He said employees want Liebenberg to be sent on leave to allow for a fair investigation.

PARLIAMENTARY DEBATE

The Meatco matter has also raised debate in parliament, with some members asking agriculture minister Inge Zaamwani-Kamwi not to consider the Cabinet’s decision to renew the contract.

Some said they are disappointed in the manner in which the government is interfering in the matter, which is supposed to be solved by the board.

Zaamwani-Kamwi yesterday in parliament said the government as a shareholder has the right to give its entities certain directives.

“This directive was linked to the turnaround strategy which was financed by Meatco, and the approval and financing therefore had certain conditions to be made.

“My predecessor wrote a letter to the board regarding this particular issue, and that is the meeting we’ve been trying to convene, but availability was a problem on both sides, and that has not taken place,” she said.

“On the issue of the Cabinet directive influencing how public enterprises are governed: There is a Public Enterprise Governance Act that governs the operations public enterprises.

“The only intervention of the shareholder is to appoint the board and the chairperson, so there is no intervention or involvement in the public enterprise,” the minister said.

AWARE OF OPINION

Namibian Sun recently reported that both president Netumbo Nandi-Ndaitwah and her predecessor, Nangolo Mbumba, were made aware of a legal opinion of attorney general Festus Mbandeka, stating it is unlawful for the Cabinet to compel the Meatco board of directors to reappoint Mushokabanji.

Despite this, former agriculture minister Mac Hengari instructed the Meatco board to suspend its ongoing recruitment process and reinstate Mushokabanji as CEO, raising concerns of executive overreach.

The legal opinion was commissioned by former public enterprises minister Iipumbu Shiimi, with the blessing of then-president Mbumba, after the Cabinet had instructed him to compel the Meatco board to offer Mushokabanji a new contract.

At the time, the board had decided not to automatically renew Mushokabanji’s contract after conducting an internal assessment.

Instead, it chose to advertise the position and invite applications from other qualified candidates.

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