Namcor and the Rise of Fear-Based Leadership

The legal dispute between former managing director Imms Mulunga and the National Petroleum Corporation of Namibia (Namcor) board has raised troubling questions, not just about governance within one parastatal, but about the future of executive leadership across Namibia’s public sector.

The unfolding saga is about more than just a contractual dispute; it reflects the growing risks faced by public sector executives who make consequential decisions.

Recent developments mark a troubling escalation that may have lasting repercussions on leadership in Namibia’s state-owned enterprises (SOEs) and government institutions.

As the case proceeds in court, I find myself deeply concerned about the precedent being set.

If this is how we treat public sector leaders who take strategic decisions in a volatile, high-stakes sectors like energy, we risk creating a leadership vacuum driven not by competence, but by fear.

IMPLICATIONS

The Enercon matter, now at the centre of criminal proceedings, stems from a payment authorised under Mulunga’s leadership.

However, procedural disagreements, perceived governance breaches and internal wrangling with the board have transformed what may have been a strategic investment into a legal minefield. 

Fast forward: Mulunga, once hailed for steering Namcor through complex terrain, is facing arrest and prosecution.

While the legal process must run its course and everyone remains innocent until proven guilty, the implications are already rippling through the wider public service.

I fear that the outcome, regardless of who ‘wins’, will set a dangerous precedent.

We are already beginning to see a shift in how chief executives of SOEs and executive directors in offices, ministries and agencies approach their duties.

Faced with growing uncertainty, internal politics, and the risk of criminal or disciplinary proceedings, many leaders may think twice before signing off on bold or strategic decisions, even when they could be of significant national benefit. 

When the fear of prosecution outweighs the perceived national benefit of a deal, we should be concerned.

This fear is compounded by the tainted and often politicised relationships between boards, executive management and shareholder ministries.

These tensions create an unstable environment. 

The timing and context of arrests that occur amid board-level infighting or changes in political winds cannot be ignored.

More worryingly is the Anti-Corruption Commission’s involvement.

While important in holding people accountable, it could unintentionally contribute to a perception that criminalisation is being used selectively, rather than as part of a fair governance ecosystem.

If this becomes the new normal, our best and brightest professionals will think twice before accepting leadership positions in public institutions.

CRUNCH TIME

The country’s recent oil and gas discoveries could transform our economy, but only if managed by capable, empowered leaders. 

We must strike a balance between accountability and executive autonomy.

Yes, leaders must follow due process and operate within the law, but they must also be protected when acting in good faith for the national interest.

Governance structures need urgent strengthening. Oversight bodies should act consistently and transparently.

Boards must be professional and non-biased. And, importantly, we must not allow internal conflicts to spill into public witch-hunts.

The Mulunga and Enercon saga may soon become case law.

But even before the courts pronounce their verdicts, one thing is clear: If we do not correct course, we may end up paralysing the leadership we need to take Namibia forward.

– Raimi Shikulo is a public sector professional who writes in her personal capacity.

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