Ex-Agribank CEO wants one million

THE SIZE of a District Labour Court claim that the former Chief Executive Officer of the Agricultural Bank of Namibia, Tjeripo Hijarunguru, is pursuing against Agribank see-sawed from N$6,1 million down to N$498 000, and then again up to N$996 000, on the first day of the court hearing on the claim yesterday.

Hijarunguru, currently employed as Director of Business and Strategic Development of the Ohltaver & List Group, started off the day claiming N$6,136 million from the parastatal that he had led as CEO from mid-May 1997 until the end of 2003. As soon as the hearing of his case against Agribank started before District Labour Court Chairman Clement Daniels, one of his lawyers, Christian Mouton, informed the court that he would only continue to claim N$498 000 from his erstwhile employer.He added that he would also not continue with a claim in which he had demanded N$50 000 in damages from former AgriBank Board Chairperson Franz Stellmacher.By early afternoon, however, after Mouton had begun to cross-examine Stellmacher, the position changed once more.This time, Mouton announced to the court that he was applying to amend Hijarunguru’s claim, in order to double it again, to N$996 000.That is the total salary that Hijarunguru would have expected to be paid had he still remained the CEO of Agribank for another year after he made a very unwilling departure from that post.Hijarunguru clung to his post and refused to vacate his office at Agribank for some three weeks into January 2004.At the time, the parastatal’s board, chaired by Stellmacher, was insisting that his employment contract with the bank had run out on December 31 2003.Hijarunguru finally agreed to leave his office on January 23 2004.By early March 2004, he however filed a complaint with the Windhoek District Labour Court in which he claimed that the Agribank had summarily dismissed him on January 23 2004.He claims in the complaint that this was done without a valid and fair reason, without following a fair procedure, and without granting him the opportunity to be heard.The bank’s case is that nothing of the sort had taken place.Hijarunguru’s employment as Agribank CEO had simply come to an end because it had reached the end of its pre-determined duration, senior counsel Dave Smuts, representing the bank, told Daniels at the start of yesterday’s hearing.According to Hijarunguru’s claim, he was employed as Agribank CEO from May 17 1997 for a period of five years.When this period ended, it was extended four times – first to the end of September 2002, then to the end of March 2003, then to the end of June 2003, and then to the end of December 2003.He had “a justified legitimate expectation” that his appointment as CEO would be renewed for a further five years from January 1 2004, Hijarunguru claims.And with his extension, he would have expected to continue earning a salary package of N$83 768 per month, and this would have increased by an average of 10 per cent a year, he claims further.Although he no longer claims money from Stellmacher, an accusation that Hijarunguru made against the former Board chairperson remains part of his claim.He is accusing Stellmacher of having “with malicious intent […] instigated a personal vendetta” against him between October 2003 and January 2004, and of having taken “various illegal and maliciously motivated steps” in order to terminate his employment with Agribank.In fact, he thought he had an excellent and friendly working relationship with Hijarunguru, Stellmacher told the court when Smuts called to the witness box as a witness for the bank.”Sounds rather mafia-like,” Stellmacher commented dryly when Smuts asked him if he was involved in a vendetta against Hijarunguru.For a vendetta one would have to have people operating in the background, he remarked.Stellmacher – a medical practitioner for the past 40 years – added: “I’m not even a politician, so I do not know how I could conduct a vendetta.”He told the court that during 2003 the Agribank board was going through the process of making an appointment to the bank’s CEO post.The position was advertised, candidates were shortlisted and interviewed, and eventually the board decided on three names, which were submitted to Finance Minister Saara Kuugongelwa-Amadhila and Agriculture Minister Helmut Angula, who in terms of the Agricultural Bank Act had to concur with the board’s choice of a candidate.In this time, Hijarunguru’s contract was extended a number of times.In letters informing him of these extensions in March and July, Stellmacher specifically stated to Hijarunguru that the extensions should not be considered to be an indication that he should expect to be appointed to the post again after his contract had run out, Stellmacher told the court.Stellmacher finally wrote Hijarunguru a letter dated December 17 2003 in which he informed Hijarunguru that his extended employment contract with the bank would be ending on December 31.Yet in early January Hijarunguru returned from his leave, and went back to his office, as if nothing had happened, Stellmacher said.In the meantime, the appointment of a new CEO was in limbo, with the two Ministers not concurring with the board’s choice, and also not available in the last part of December or early January to confirm the appointment of an acting CEO, he related.”The recruitment process could have been completed and somebody appointed had the two Ministers taken their responsibility more seriously,” Stellmacher said.”They could have made the appointment before going on holiday.”The hearing continues today, with Hijarunguru expected to testify.As soon as the hearing of his case against Agribank started before District Labour Court Chairman Clement Daniels, one of his lawyers, Christian Mouton, informed the court that he would only continue to claim N$498 000 from his erstwhile employer. He added that he would also not continue with a claim in which he had demanded N$50 000 in damages from former AgriBank Board Chairperson Franz Stellmacher.By early afternoon, however, after Mouton had begun to cross-examine Stellmacher, the position changed once more.This time, Mouton announced to the court that he was applying to amend Hijarunguru’s claim, in order to double it again, to N$996 000.That is the total salary that Hijarunguru would have expected to be paid had he still remained the CEO of Agribank for another year after he made a very unwilling departure from that post.Hijarunguru clung to his post and refused to vacate his office at Agribank for some three weeks into January 2004.At the time, the parastatal’s board, chaired by Stellmacher, was insisting that his employment contract with the bank had run out on December 31 2003.Hijarunguru finally agreed to leave his office on January 23 2004.By early March 2004, he however filed a complaint with the Windhoek District Labour Court in which he claimed that the Agribank had summarily dismissed him on January 23 2004.He claims in the complaint that this was done without a valid and fair reason, without following a fair procedure, and without granting him the opportunity to be heard.The bank’s case is that nothing of the sort had taken place.Hijarunguru’s employment as Agribank CEO had simply come to an end because it had reached the end of its pre-determined duration, senior counsel Dave Smuts, representing the bank, told Daniels at the start of yesterday’s hearing.According to Hijarunguru’s claim, he was employed as Agribank CEO from May 17 1997 for a period of five years.When this period ended, it was extended four times – first to the end of September 2002, then to the end of March 2003, then to the end of June 2003, and then to the end of December 2003.He had “a justified legitimate expectation” that his appointment as CEO would be renewed for a further five years from January 1 2004, Hijarunguru claims.And with his extension, he would have expected to continue earning a salary package of N$83 768 per month, and this would have increased by an average of 10 per cent a year, he claims further.Although he no longer claims money from Stellmacher, an accusation that Hi
jarunguru made against the former Board chairperson remains part of his claim.He is accusing Stellmacher of having “with malicious intent […] instigated a personal vendetta” against him between October 2003 and January 2004, and of having taken “various illegal and maliciously motivated steps” in order to terminate his employment with Agribank.In fact, he thought he had an excellent and friendly working relationship with Hijarunguru, Stellmacher told the court when Smuts called to the witness box as a witness for the bank.”Sounds rather mafia-like,” Stellmacher commented dryly when Smuts asked him if he was involved in a vendetta against Hijarunguru.For a vendetta one would have to have people operating in the background, he remarked.Stellmacher – a medical practitioner for the past 40 years – added: “I’m not even a politician, so I do not know how I could conduct a vendetta.”He told the court that during 2003 the Agribank board was going through the process of making an appointment to the bank’s CEO post.The position was advertised, candidates were shortlisted and interviewed, and eventually the board decided on three names, which were submitted to Finance Minister Saara Kuugongelwa-Amadhila and Agriculture Minister Helmut Angula, who in terms of the Agricultural Bank Act had to concur with the board’s choice of a candidate.In this time, Hijarunguru’s contract was extended a number of times.In letters informing him of these extensions in March and July, Stellmacher specifically stated to Hijarunguru that the extensions should not be considered to be an indication that he should expect to be appointed to the post again after his contract had run out, Stellmacher told the court.Stellmacher finally wrote Hijarunguru a letter dated December 17 2003 in which he informed Hijarunguru that his extended employment contract with the bank would be ending on December 31.Yet in early January Hijarunguru returned from his leave, and went back to his office, as if nothing had happened, Stellmacher said.In the meantime, the appointment of a new CEO was in limbo, with the two Ministers not concurring with the board’s choice, and also not available in the last part of December or early January to confirm the appointment of an acting CEO, he related.”The recruitment process could have been completed and somebody appointed had the two Ministers taken their responsibility more seriously,” Stellmacher said.”They could have made the appointment before going on holiday.”The hearing continues today, with Hijarunguru expected to testify.