The National Petroleum Corporation of Namibia (Namcor) has agreed to pay its finance executive, Jennifer Hamukwaya, N$1,6 million to leave the company.
Hamukwaya sued the state oil company in March after it refused to extend her employment contract for another five years.
This decision was made by the Namcor board during a sitting on 27 January.
The settlement agreement, which The Namibian has seen, shows that Namcor has agreed to pay Hamukwaya a fee of N$1,6 million.
The agreement was concluded in the Windhoek High Court on 9 June.
“In settlement of the dispute, Namcor undertakes to pay Hamukwaya an employment separation package (compensation) equal to Hamukwaya’s nine-month salary,” the agreement reads.
“Hamukwaya’s nine-month salary amounts to N$1,6 million. The amount payable to Hamukwaya shall be net of tax applicable as directed by the tax authority,” the agreement further reads.
Hamukwaya did not respond when contacted for comment yesterday.
A chartered accountant by profession, she was appointed by Namcor’s managing director, Immanuel Mulunga, in April 2018 on a five-year contract.
That contract came to an end on 30 April this year.
Hamukwaya has since vacated the office, according to the settlement agreement.
“Namcor and its board of directors’ decision not to renew Hamukwaya’s contract of employment is hereby accepted by Hamukwaya, who has since then vacated her position of employment on 30 April 2023,” the agreement reads.
“Accordingly, Hamukwaya agrees and undertakes to withdraw her review application upon signing this present settlement agreement by both parties,” it further reads.
Hamukwaya started off on a salary of N$88 000 per month, according to the employment contract she signed in 2018.
By the time of her exit, she was earning N$180 000 a month.
According to the agreement, the settlement fee is to be paid within seven days.
Hamukwaya initially refused the board’s offer of an exit package of N$1,6 million, which includes a clause stating she can either continue to work or not during her notice period.
“Option 1: gratuity, plus payment of three months’ notice period, and an additional amount to fill the gap between that payment and her 12 months’ annual salary.
“Option 2: gratuity, plus the payment of three months’ notice period and an additional 12 months’ salary,” the board’s resolution reads.
The average monthly salary for executives at Namcor is N$180 000, while the salary range for the managing director position starts at N$220 000.
The Namibian reported earlier this year that Namcor spent more than N$118 million on the salaries of its 189 employees, according to its 2021/22 financial statements.
Some 53% of the entity’s employees are men, and 47% are women.
Lawyer Francois Bangamwabo represented Hamukwaya, while Lauren Kannemeyer from Kangueehi and Kavendjii incorporated represented Namcor.
“I have no authority to speak on that matter. The chapter is closed,” Bangamwabo said yesterday.
Jerome Davis, also a chartered accountant, has been named as Namcor’s interim executive of finance and administration until 31 December.