KAT sold to prevent further losses: GIPF boss Hango

THE sale of Karas Abattoir and Tannery Processors (KAT) was part of the Government Institutions Pension Fund’s strategy to make a responsible exit from its loss-making investments to prevent further losses.

In media statement on Thursday, GIPF’s CEO Primus Hango said new owner Brukaros Meat Processors (BMP) was the highest bidder from the five tenders received. Hango denied allegations made earlier by sacked KAT Board of Directors Chairman Risto Kapenda that the takeover deal was sealed before consultations had been completed with all relevant stakeholders.”The GIPF has consulted widely and taken legal advice throughout the process to ensure any risks to any party, including the Directors of KAT, but more particularly, the employees of KAT, were minimised,” Hango said.Kapenda and two others, Maru Tjihumino and Vilho Nghipondoka, were removed as directors last week for allegedly having delayed the company’s takeover – a claim earlier denied by Kapenda.”The sale agreement fully protects the rights of the employees in terms of the laws of Namibia, and in terms of agreements between KAT and its employees or their representatives,” Hango added.He said GIPF’s intention was to bring the sale to a speedy conclusion in consultations with all stakeholders.Hango said the trustees of GIPF believed the sale of the facility to BMP was the correct choice, adding that BMP would run it in a positive and sustainable way.Earlier, Kapenda told The Namibian that workers’ jobs were on the line as a result of the takeover expected on January 2 next year.In the past, workers have protested against possible job losses and claimed they were kept in the dark on the company’s takeover.A meeting between workers and KAT management is scheduled for today to shed light on the workers’ future.Hango denied allegations made earlier by sacked KAT Board of Directors Chairman Risto Kapenda that the takeover deal was sealed before consultations had been completed with all relevant stakeholders.”The GIPF has consulted widely and taken legal advice throughout the process to ensure any risks to any party, including the Directors of KAT, but more particularly, the employees of KAT, were minimised,” Hango said.Kapenda and two others, Maru Tjihumino and Vilho Nghipondoka, were removed as directors last week for allegedly having delayed the company’s takeover – a claim earlier denied by Kapenda.”The sale agreement fully protects the rights of the employees in terms of the laws of Namibia, and in terms of agreements between KAT and its employees or their representatives,” Hango added.He said GIPF’s intention was to bring the sale to a speedy conclusion in consultations with all stakeholders.Hango said the trustees of GIPF believed the sale of the facility to BMP was the correct choice, adding that BMP would run it in a positive and sustainable way.Earlier, Kapenda told The Namibian that workers’ jobs were on the line as a result of the takeover expected on January 2 next year.In the past, workers have protested against possible job losses and claimed they were kept in the dark on the company’s takeover.A meeting between workers and KAT management is scheduled for today to shed light on the workers’ future.