High Court rules against NBC bonus report

The High Court has thrown out a report by the parliamentary standing committee that criticised the Namibian Broadcasting Corporation (NBC) for paying N$5.4 million in bonuses to its top executives.

High Court acting judge Natasha Bassingthwaighte on Friday ordered that each party bear their own costs.

The report, compiled by the parliament standing committee on human resources and community development, linked the 2021 strike to performance bonuses awarded to senior managers and executives.

NBC took parliament to court in March over the report, but earlier this month agreed to withdraw its legal action on condition that lawmakers retract the report.

The latest twist comes as documents reveal tensions between NBC’s board and the Ministry of Information and Communication Technology.

NBC board chairperson Lazarus Jacobs warned against political interference after information minister Emma Theofelus urged the broadcaster to abandon its court case.

Some analysts have in the past criticised NBC’s move to take the parliament to court calling it a waste of public funds and a poor executive approach.

However, Jacobs had confirmed in a letter dated 31 May that the broadcaster would comply with the minister’s directive but only after seeking assurances from Theofelus. He said the move carries serious risks if not properly managed.

“The board has resolved to take steps towards the withdrawal of the judicial review application, in alignment with your directive and the broader interests of public confidence and governance harmony.

“The judicial review application was not initiated lightly. It was premised on serious concerns relating to procedural irregularities, breaches of natural justice, and factual inaccuracies contained in the parliamentary report,” he said.

THE CASE

NBC being represented by its lawyer, Loni Shikale, took the committee to court in March due to an ‘infactual’ report on the controversial and devastating NBC strike that took place in April and May 2021, which disrupted radio and television broadcasts.

Jabulani Ncube represented the respondents which included the National Assembly speaker, all members of the parliamentary standing committee and the secretary.

NBC said the report had procedural irregularities, breaches of natural justice, and factual inaccuracies, which adversely implicated members of the NBC’s executive management and board.

NBC accused the standing committee of encroaching into matters that fall within the jurisdiction of the judiciary and corporate governance of state-owned enterprises in their report findings.

Theofelus in a 27 May letter addressed to Jacobs gave a directive for the broadcaster to withdraw the case in the High Court.

“This directive is issued in the interest of fostering institutional cooperation, maintaining respect for parliamentary oversight, and allowing for a more collaborative and solution-oriented approach to resolving any outstanding solutions,” she said.

PUBLIC IMPLICATIONS

Theofelus noted that she has taken into consideration the status of the matter, as well as the broader implications of governance and public confidence.

Jacobs said they would only follow the directive if there are protections to make sure the law is respected and institutional accountability is preserved.

He added the directive would also only be followed if no negative inference is drawn from their withdrawal, which may compromise their legal position or rights in the future.

“The withdrawal of the judicial review shall not be construed as a concession of the validity, accuracy, or fairness of the contents of the said parliamentary report.

The rights of the NBC, its board members, and executive management to challenge or clarify any adverse findings or statements in any appropriate forum remain fully reserved,” he said.

He also asked Theofelus to ensure that her office will take appropriate steps to engage parliament to ensure that the matter is addressed through fair, transparent, and constitutionally compliant processes.

“Hence, no adverse administrative, reputational, or legal consequences will be pursued or endorsed by your ministry or parliament based solely on the contents of the withdrawn report,” he stated.

The recommendations in the parliamentary standing committee’s report released in February 2025, which do not sit well with NBC, are for them to reimburse all employees who took part in the strike.

NBC argued that it’s contrary to a binding ruling by the Office of the Labour Commissioner.

Another recommendation by the parliamentary committee was that NBC reinstate the shop steward, Johannes Gaseb.

The NBC deems this inappropriate as the matter remains ongoing and pending a ruling by the labour commissioner.

“The committee’s recommendations, particularly those advocating for the reversal of legally binding employment policies, labour commissioner’s rulings, and financial decisions, directly infringe upon established labour laws and corporate governance structures.

This level of interference not only undermines legal processes but also threatens the integrity of Namibia’s governance institutions,” NBC said.

NBC further reasoned that the committee’s attempt to step outside of its advisory role and make determinations on matters beyond its purview risks destabilising industrial relations, eroding confidence in legal mechanisms, and fostering uncertainty in corporate governance.

“The report also fails to acknowledge and incorporate that the committee received adequate information through its engagements with the board of directors and management, through which the committee was informed that decisions made by NBC regarding employment policies, remuneration structures, and contract agreements were done in accordance with legal frameworks and in consultation with relevant stakeholders.

The absence of a balanced assessment of NBC’s operational realities suggests a lack of due diligence on the part of the committee or a deliberate attempt aimed at vilifying the board and management,” NBC noted.

In 2021, at least 600 NBC employees went on a nationwide strike, demanding an 8% salary increment and for all workers on one-month contracts to be employed on a full-time basis.

The no work, no pay rule led to the workers having to repay the NBC for the time they spent striking.

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