Finance strengthens grip on Agribank

THE Minister of Finance has received the green light to give herself more powers over the affairs of Agribank, while the board of directors remains in the dark about the appointment of the institution’s senior management.

Cabinet has announced that it has approved proposals by Minister of Finance Saara Kuugongelwa-Amadhila to strengthen her hand relative to the directors. Agribank has had what amounts to a stand-off between the Minister and the board of directors over the appointment of a chief executive officer.The board appointed Maureen Hinda last year but Kuugongelwa-Amadhila opposed the decision, saying procedures were not followed.Kuugongelwa-Amadhila is expected to table the Agricultural Bank of Namibia Amendment Bill when the National Assembly resumes sitting next week.Among the proposed amendments will be that the considerable power to appoint a chairperson and deputy chairperson of the board be “vested in the Minister”.Some Government sources earlier said Kuugongelwa-Amadhila had felt frustrated by the current board, which accused her of interference and was thus hoping to have someone she would be able to work with.Approached for comment after the news, Agribank Chairman Dr Franz Stellmacher said he was not aware of the amendments.The Finance Minister stopped the board from conducting interviews for a new CEO more than a month ago, and reportedly requested a short-listing of candidates.”We have not heard from the Minister, which is making things awkward.We don’t know where we stand,” said Stellmacher.Last month, Stellmacher said they hoped to have a CEO by the end of the month.For now, the acting CEO Haleni Ndjaba, the former Deputy Permanent Secretary of Finance, has been asked to stay on until the end of August.In the meantime Ndjaba was appointed Permanent Secretary for the Ministry of Works, Transport and Communication but has not taken up the post for months.The amendment also seeks to “regulate the term of office of members of the Agribank board and the power for the Minister to remove a member from office”.The amendment will also aim to set up performance criteria for the CEO, which must be approved by the board of directors in consultation with the Ministers of Finance and Agriculture.Agribank has had what amounts to a stand-off between the Minister and the board of directors over the appointment of a chief executive officer.The board appointed Maureen Hinda last year but Kuugongelwa-Amadhila opposed the decision, saying procedures were not followed.Kuugongelwa-Amadhila is expected to table the Agricultural Bank of Namibia Amendment Bill when the National Assembly resumes sitting next week.Among the proposed amendments will be that the considerable power to appoint a chairperson and deputy chairperson of the board be “vested in the Minister”.Some Government sources earlier said Kuugongelwa-Amadhila had felt frustrated by the current board, which accused her of interference and was thus hoping to have someone she would be able to work with.Approached for comment after the news, Agribank Chairman Dr Franz Stellmacher said he was not aware of the amendments.The Finance Minister stopped the board from conducting interviews for a new CEO more than a month ago, and reportedly requested a short-listing of candidates.”We have not heard from the Minister, which is making things awkward.We don’t know where we stand,” said Stellmacher.Last month, Stellmacher said they hoped to have a CEO by the end of the month.For now, the acting CEO Haleni Ndjaba, the former Deputy Permanent Secretary of Finance, has been asked to stay on until the end of August.In the meantime Ndjaba was appointed Permanent Secretary for the Ministry of Works, Transport and Communication but has not taken up the post for months.The amendment also seeks to “regulate the term of office of members of the Agribank board and the power for the Minister to remove a member from office”.The amendment will also aim to set up performance criteria for the CEO, which must be approved by the board of directors in consultation with the Ministers of Finance and Agriculture.