TILENI MONGUDHI and MATHIAS HAUFIKUTHE Ministry of Finance is in the process of moving some of its employees under the Inland Revenue as well as Customs and Excise departments to the Namibia Revenue Agency (NamRa).
With an estimated 1 200 staff members to be affected by the move, the workers are still waiting for more details about their options, but it is understood that the ministry’s plans to scrap the departments are at an advanced stage.
The Namibian understands that the move is also part of the government’s plan to reduce the civil service wage bill.
This was confirmed by finance minister Calle Schlettwein in a written response to The Namibian last week when he indicated that the overall approach to personnel recruitment is to ensure that most, if not all, the staff in the departments of Inland Revenue and Customs and Excise are employed at NamRa.
“But this will not be through automatic transfers. Interviews and selection processes against minimum requirements for NamRa jobs as well as the vetting process will be followed,” he added.
Other options for the workers include buyouts and early retirement packages to those who do not accept relocation, according to several employees, but they are still waiting for final indications from the ministry.
The Namibian spoke to two sources, who independently corroborated each other’s claims that the planned transfers could be blocked due to a lack of finances to pay out the workers. This could prolong the agency’s operationalisation.
Schlettwein said there are no immediate job losses anticipated as a result of the transition to NamRa, and that staff movements from existing departments are set out under the law, and not subject to discretionary decisions.
“However, the ministry and the NamRa board will manage the transitional arrangements, such that staff who possess requisite skills and meet the requirements of the vetting process are afforded the opportunity to compete for jobs at NamRa in terms of the provision of the NamRa Act, and the total number of staff members for redeployment is significantly reduced,” noted the minister.
Said Schlettwein: “This approach to recruitment is in line with the approved principle policy objectives of attracting specialised skills in the core functions of tax and customs administration such as audit, investigations, legal and ICT; improving internal operational efficiency; and serving as a catalyst for implementing tax and customs and excise reforms speedily.”
Since employees will have to resign from the ministry, Schlettwein also commented on the ministry’s ability to cater for the costs involved in moving the employees over to NamRa.
“As part of the transitional arrangements to establish NamRa, budgetary provisions are made to fund transitional activities in preparation for day one of NamRa. The related leave gratuity for staff who would manage to gain employment at NamRa is implied by the reform decision to move these in-house departments outside the civil service,” he explained.
The minister continued that the cost scenarios for such a transition are considered in this process, and that such provisions will be improved upon as NamRa becomes operational.
The finance ministry last month appointed the deputy governor of the Bank of Namibia, Ebson Uanguta, as the Namibia Revenue Agency’s interim chief executive officer.
His duties include formulating and transmitting to the board the strategic plan, internal policies, business plan, management systems, budget proposals and the budget execution report for guidance and approval.
Uanguta’s secondment will be for six months until March 2020 so that the commissioner, together with the board, can develop a structure for the agency and recruit staff.
The deputy governor will go back to the central bank after six months, after the ministry recruits the commissioner.
Email: bottomline@namibian.com.na
