NamPort directors pocket big payouts

TWO members of the Namibia Ports Authority (NamPort) board collected a hefty bonus of N$150 000 each at the end of last year – double the N$70 000 of the previous year – without the approval of the line Minister.

Shakespeare Masiza, who resigned in January as Chairman of the board of the parastatal, as well as André Neethling, received the payouts after the company reportedly made a breakthrough in its financial performance largely because of their input. This issue is now part of a wide-ranging probe the Anti-Corruption Commission will launch into the Ports Authority.ACC Director Paulus Noa confirmed yesterday that they had received several complaints about these payouts, operational aspects and alleged illegal dismissals of staff at NamPort and that an investigation would be undertaken as soon as possible to look into these claims.Despite several attempts to get official comment from NamPort over the past two weeks, the company remained tight-lipped on the payouts.Masiza confirmed that he not only received N$150 000 at the end of 2007 but was also given a N$20 000 dining-room suite “as a gift” in November 2006.”It is the company policy that senior managers have the discretion to give, meritoriously, gifts of up to N$50 000, to anybody.When we made a breakthrough in terms of finances in 2006, the CEO [Zebby Kankondi] decided to give me a gift,” Masiza said.He confirmed however, that the gift was not discussed at Board level.When the board’s audit committee (headed by Neethling) picked up on the expense, it was investigated and found to be in order, Masiza said.Sources said there was no written policy on gifts, business courtesies, gratuities and favours at the parastatal.Masiza said the non-executive members of the board had “always received” bonuses when the company did well.The huge amounts paid to the board members were in sharp contrast to the working conditions of some staff members who earned bonuses as small as N$1 000 in the same year.”If the company makes profit(s), why can’t the workers who worked so hard also earn something decent?” asked one employee, angered at the Board payouts.The Public Service Commission wrote to the NamPort board on November 23 2006 informing them that public servants (Mr P Amutenya: Director of Operations in the Ministry of Fisheries, and Mrs A Hange: Director in the Ministry of Finance) were not allowed to collect sitting fees or any other remuneration as incumbent board members.The Namibian has seen a board resolution taken on November 9 last year to the effect that non-executive members of the board who were not Government employees would receive N$150 000 each as a bonus.The money was paid out without the (former) Minister of Works, Transport and Communication, Joel Kaapanda, expressing himself on the matter.However, Masiza said the bonuses for himself and Neethling were cleared with the Ministry of Works and also the ACC.”We have done so much to improve the financial performance of the company.It is now seeing light.To see these issues recurring is a bit discouraging,” Masiza said.It is not clear whether bonuses for board members at parastatals are the norm in Namibia.Attempts to establish this, one way or another, with several parastatals, indicated that they were only paid sitting allowances.Rino Muranda, corporate affairs officer at Social Security Commission (SSC), said their remuneration policy specifies that commissioners receive N$2 000 per sitting, while the Chairperson of the Commission receives a sitting allowance of N$3 000 per meeting.”The payment of these allowances is determined and approved by the Minister of Labour and Social Welfare periodically,” he said.Telecom’s company secretary, Stanley Shanapinda, and his counterpart at NamWater, Onni-Ndangi Iithete, said these parastatals had “never paid” bonuses to board members.The State-Owned Enterprises Governance Act 2 of 2006 (Section 22) states that the line Minister approves board sitting fees in consultation with the Minister of Finance.This issue is now part of a wide-ranging probe the Anti-Corruption Commission will launch into the Ports Authority.ACC Director Paulus Noa confirmed yesterday that they had received several complaints about these payouts, operational aspects and alleged illegal dismissals of staff at NamPort and that an investigation would be undertaken as soon as possible to look into these claims. Despite several attempts to get official comment from NamPort over the past two weeks, the company remained tight-lipped on the payouts.Masiza confirmed that he not only received N$150 000 at the end of 2007 but was also given a N$20 000 dining-room suite “as a gift” in November 2006.”It is the company policy that senior managers have the discretion to give, meritoriously, gifts of up to N$50 000, to anybody.When we made a breakthrough in terms of finances in 2006, the CEO [Zebby Kankondi] decided to give me a gift,” Masiza said.He confirmed however, that the gift was not discussed at Board level.When the board’s audit committee (headed by Neethling) picked up on the expense, it was investigated and found to be in order, Masiza said.Sources said there was no written policy on gifts, business courtesies, gratuities and favours at the parastatal.Masiza said the non-executive members of the board had “always received” bonuses when the company did well.The huge amounts paid to the board members were in sharp contrast to the working conditions of some staff members who earned bonuses as small as N$1 000 in the same year.”If the company makes profit(s), why can’t the workers who worked so hard also earn something decent?” asked one employee, angered at the Board payouts.The Public Service Commission wrote to the NamPort board on November 23 2006 informing them that public servants (Mr P Amutenya: Director of Operations in the Ministry of Fisheries, and Mrs A Hange: Director in the Ministry of Finance) were not allowed to collect sitting fees or any other remuneration as incumbent board members.The Namibian has seen a board resolution taken on November 9 last year to the effect that non-executive members of the board who were not Government employees would receive N$150 000 each as a bonus.The money was paid out without the (former) Minister of Works, Transport and Communication, Joel Kaapanda, expressing himself on the matter.However, Masiza said the bonuses for himself and Neethling were cleared with the Ministry of Works and also the ACC.”We have done so much to improve the financial performance of the company.It is now seeing light.To see these issues recurring is a bit discouraging,” Masiza said.It is not clear whether bonuses for board members at parastatals are the norm in Namibia.Attempts to establish this, one way or another, with several parastatals, indicated that they were only paid sitting allowances.Rino Muranda, corporate affairs officer at Social Security Commission (SSC), said their remuneration policy specifies that commissioners receive N$2 000 per sitting, while the Chairperson of the Commission receives a sitting allowance of N$3 000 per meeting.”The payment of these allowances is determined and approved by the Minister of Labour and Social Welfare periodically,” he said.Telecom’s company secretary, Stanley Shanapinda, and his counterpart at NamWater, Onni-Ndangi Iithete, said these parastatals had “never paid” bonuses to board members.The State-Owned Enterprises Governance Act 2 of 2006 (Section 22) states that the line Minister approves board sitting fees in consultation with the Minister of Finance.