Cabinet criticised for Meatco chief executive recruitment interference

Cabinet has been criticised for influencing the recruitment process for the Meat Corporation of Namibia (Meatco) chief executive.

This comes after revelations that Cabinet halted the vacancy advertising process to influence the board of the company to reinstate former chief executive Mwilima Mushokabanji.

Experts argue that Cabinet’s decision to override the board’s earlier decision to not extend Mushokabanji’s contract undermines corporate governance and “reeks” of interference.

Corporate governance expert Steve Galloway says it is unwise for Cabinet or line ministers to give instructions to boards on anything beyond policy.

“Appointments, renewals or dismissals of chief executives are the prerogative of the board, as are most decisions involving strategy and the direction of the enterprise. . . shareholders should only intervene in the case of extreme emergency or board failure,” Galloway says.

He says over the years Cabinet or line ministers have interfered with or overruled public enterprise boards, sometimes giving illegal instructions.

Galloway says the recent consolidation of ministries and return of public enterprises to line ministries offers focus and efficiency but also poses governance challenges due to concentrated authority.

“Adoption of modern, outcome-based governance codes by all organisations is critical to a culture of ethical and effective governance. Legislated centralised control or unfettered authority by individuals should be guarded against,” Galloway says.

Mushokabanji, who was appointed as chief executive in 2020, has been criticised for failing to take the state-owned meat corporation out of financial ruin, leaving it heavily reliant on government bailouts.

Meatco board chairperson Sakaria Nghikembua yesterday said Meatco is yet to meet with line ministries and government officials to discuss the way forward.

“The consultations have not taken place yet,” Nghikembua said.

Another corporate governance expert, Ntelamo Ntelamo, says major decisions are the preserve of the board of directors.

“Some laws require that a shareholder minister approves or concurs with the appointment recommendation by the board of directors.

I am yet to find where Cabinet directs the appointment of a chief executive of a public enterprise. It sounds quite irregular that a shareholder minister should have untrammeled powers to order this or that appointment,” Ntelamo says.

He says this type of interference may set the wrong precedent in public enterprises.

“Those desperate for appointment or re-appointment will be camping at Cabinet’s doors until they are assisted,” Ntelamo says.

Meanwhile, Namibia Economic Freedom Fighters (NEFF) deputy leader Kalimbo Iipumbu says the party is concerned by the decision of Cabinet to reinstate the former chief executive after his contract had lawfully come to an end.

“This abrupt U-turn not only undermines corporate governance and transparency but reeks of political interference and factional favouritism. The NEFF views this action as a blatant insult to the principles of meritocracy and independence in the management of state-owned enterprises.

“The role of the Cabinet is not to micromanage or handpick leadership in parastatals to suit their narrow political agendas. It is to provide oversight and support good governance,” Iipumbu says.

Popular Democratic Movement leader McHenry Venaani questions the motives behind the government’s decision to not allow the chief executive recruitment to follow regular procedures.

“Why is the political leadership forcing his return? Why is he not being allowed to apply like any other person whose contract has ended? Why is he being headhunted after the failures of over N$1 billion that went missing in that place through losses? Our stance is very clear that the government is interfering; it’s illegal,” Venaani says.

The Landless People’s Movement (LPM) spokesperson Lifalaza Simataa says when the autonomy of such an organisation is compromised by the mother body or organisation it may interfere with the expected day-to-day mandates.

“It limits the ability to function appropriately,” Simataa says.

Independent Patriots for Change shadow finance minister Michael Mwashindange says political interference in state-owned enterprises (SOEs) can significantly undermine their ability to operate efficiently and meet public needs.

“Political interference in SOEs can lead to dire consequences such as inefficiency as political involvement often leads to prioritising political goals over operational efficiency. This can result in poor resource allocation and mismanagement,” he says.

Mwashindange says political interference can reduce the accountability of managers and employees in SOEs.

“Since the focus shifts to political agendas, performance metrics may be ignored, leading to a lack of transparency and poor governance.

As a party that strongly believes in the rule of law, we see this as not only a breach of the Constitution by the executive but also as a betrayal of trust for the Namibian people,” Mwashindange says.

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