Move to rein in Agribank directors takes step forward

MURMURS greeted an announcement yesterday by Deputy Minister of Finance, Clara Bohitile, in the National Assembly, that her Ministry will introduce changes to the Agribank Act giving the Minister the authority to dismiss directors.

The Minister of Finance, Saara Kuugongelwa-Amadhila, who is on maternity leave, switched to combative mode last week when she “demanded” that Agribanks board of directors resign after they refused to endorse her order to appoint a hand-picked chief executive officer. Mumbles could be heard in the National Assembly when Bohitile read the notice alerting her fellow lawmakers to the amendment bill.Changes to the law will make it easier for Kuugongelwa-Amadhila to dismiss directors, whom she feels have not been malleable during the past year as the drawn out search for a CEO has intensified.The board last week refused to appoint Deputy Lands Minister Isak Katali as acting CEO.This prompted the Minister to demand the directors’ resignation, an effective dismissal stemmed only by a lack of legal powers.The directors said Katali, a former teacher and education planner with a Masters degree, was not “suitably qualified or experienced” to run the financial institution.The directors met yesterday and will communicate their decision to Kuugongelwa-Amadhila today.Agribank Chairman Dr Franz Stellmacher declined to divulge any details.He was quoted earlier as saying board members would not resign.Insiders said the board of directors intended to seek legal opinion about the Ministers demand they they leave office.Mumbles could be heard in the National Assembly when Bohitile read the notice alerting her fellow lawmakers to the amendment bill.Changes to the law will make it easier for Kuugongelwa-Amadhila to dismiss directors, whom she feels have not been malleable during the past year as the drawn out search for a CEO has intensified.The board last week refused to appoint Deputy Lands Minister Isak Katali as acting CEO.This prompted the Minister to demand the directors’ resignation, an effective dismissal stemmed only by a lack of legal powers.The directors said Katali, a former teacher and education planner with a Masters degree, was not “suitably qualified or experienced” to run the financial institution.The directors met yesterday and will communicate their decision to Kuugongelwa-Amadhila today.Agribank Chairman Dr Franz Stellmacher declined to divulge any details.He was quoted earlier as saying board members would not resign.Insiders said the board of directors intended to seek legal opinion about the Ministers demand they they leave office.