Ehafo faces hostile takeover

GOVERNMENT may soon take over the Ehafo Trust, after financial troubles at the institution for disabled people prevented employees from receiving their salaries last month.

About 70 workers at the Ehafo work centre have been demonstrating and sleeping at the Ehafo premises on the outskirts of Windhoek for the past two days. Ehafo’s financial status has been a cause for concern for years now, with orders for jobs being few and far between.In the past, the Trust could depend on international donor funding but this steadily fell away, and the centre has been left dependent on Government bulk orders for school furniture.In an interview with The Namibian yesterday, Ehafo Board Chairman Andrew Matjila said the Government orders on their own were simply not enough to keep the Trust afloat.”We might get an order that keeps us busy for five months, and then there’s no more work.But, with the little money made, we have to ensure salary payments even throughout the months when no work is being done,” he said.This, he said, has led to the current crisis situation where the Trust’s coffers are empty.Realising the trouble they were in, the board approached Government to ask for a temporary bailout.Matjila says the board has been looking at ways to make Ehafo self-sustainable, and was developing a business plan to start an aquaculture project before the funds dried up.”We were advised on the idea, and on the fact that this would allow us to become self-sustaining.So all we need from Government is a temporary bailout, even a soft loan.When we become self-sustaining, this will be paid back,” Matjila said.Government came up with an alternative proposal, however.According to Tjiueza Tjombumbi, Disability Advisor to the Prime Minister, Government has offered to take over Ehafo, including all its assets and liabilities.Government would thus also be responsible for paying workers’ salaries.Asked for comment, Education Ministry Permanent Secretary Vitalis Ankama said this decision followed a number of meetings between Government and the Ehafo board.”We were quite willing to help, because nobody would like to see an organisation such as this, helping people with disabilities, collapse.But we are also careful.If we help, we would expect a guarantee that the project will continue beyond that help,” Ankama told The Namibian yesterday.The board, it seems, has not been able to convince Government that it would be able to keep Ehafo running beyond such an initial bailout.The board will meet tomorrow to discuss the Government proposal, Matjila said.However, he said he was not happy with the communication by Government which proposed the takeover of Ehafo.The one-page letter was signed by Ankama as the chairperson of the meeting that decided on the offer, but it had no Government letterhead or date stamp, he said.”A decision with such far-reaching implications should have been made at Cabinet level, and it should spell out what will happen to the workers, the board, the properties, the liabilities,” Matjila said.If the board were to consider such an offer, he said, all these issues would need to be spelled out clearly.Meanwhile, Ehafo workers remain in front of the centre, waiting for resolution on their salary payments.For now, workers at Ehafo The Namibian spoke to say they favour a Government takeover, their immediate concern undoubtedly being their pay.”The immediate thing is to find money to pay wages.We’ve failed with Government, but I am in contact with lawyers and we are negotiating with a bank.We are doing our best,” Matjila said.Workers at Ehafo’s Vocational Training College (VTC) on the same premises are excluded from the current crisis.Government took over the VTC functions a few years ago.Ehafo’s financial status has been a cause for concern for years now, with orders for jobs being few and far between.In the past, the Trust could depend on international donor funding but this steadily fell away, and the centre has been left dependent on Government bulk orders for school furniture.In an interview with The Namibian yesterday, Ehafo Board Chairman Andrew Matjila said the Government orders on their own were simply not enough to keep the Trust afloat.”We might get an order that keeps us busy for five months, and then there’s no more work.But, with the little money made, we have to ensure salary payments even throughout the months when no work is being done,” he said. This, he said, has led to the current crisis situation where the Trust’s coffers are empty.Realising the trouble they were in, the board approached Government to ask for a temporary bailout.Matjila says the board has been looking at ways to make Ehafo self-sustainable, and was developing a business plan to start an aquaculture project before the funds dried up.”We were advised on the idea, and on the fact that this would allow us to become self-sustaining.So all we need from Government is a temporary bailout, even a soft loan.When we become self-sustaining, this will be paid back,” Matjila said.Government came up with an alternative proposal, however.According to Tjiueza Tjombumbi, Disability Advisor to the Prime Minister, Government has offered to take over Ehafo, including all its assets and liabilities.Government would thus also be responsible for paying workers’ salaries.Asked for comment, Education Ministry Permanent Secretary Vitalis Ankama said this decision followed a number of meetings between Government and the Ehafo board.”We were quite willing to help, because nobody would like to see an organisation such as this, helping people with disabilities, collapse.But we are also careful.If we help, we would expect a guarantee that the project will continue beyond that help,” Ankama told The Namibian yesterday.The board, it seems, has not been able to convince Government that it would be able to keep Ehafo running beyond such an initial bailout.The board will meet tomorrow to discuss the Government proposal, Matjila said.However, he said he was not happy with the communication by Government which proposed the takeover of Ehafo.The one-page letter was signed by Ankama as the chairperson of the meeting that decided on the offer, but it had no Government letterhead or date stamp, he said.”A decision with such far-reaching implications should have been made at Cabinet level, and it should spell out what will happen to the workers, the board, the properties, the liabilities,” Matjila said.If the board were to consider such an offer, he said, all these issues would need to be spelled out clearly.Meanwhile, Ehafo workers remain in front of the centre, waiting for resolution on their salary payments.For now, workers at Ehafo The Namibian spoke to say they favour a Government takeover, their immediate concern undoubtedly being their pay.”The immediate thing is to find money to pay wages.We’ve failed with Government, but I am in contact with lawyers and we are negotiating with a bank.We are doing our best,” Matjila said.Workers at Ehafo’s Vocational Training College (VTC) on the same premises are excluded from the current crisis.Government took over the VTC functions a few years ago.