Nored board faces legality challenge

LAWYERS acting for the suspended Managing Director of Nored, the electricity company in northern Namibia, Martin Heita, are challenging the legality of the firm’s board of directors.

The lawyers argue that the board was illegally constituted and that the directors are occupying their posts illegally. The challenge, if successful, could throw into disarray decisions taken by Nored in the last three years.The Namibian has learned that lawyers handling Heita’s suspension, Metcalfe Practitioners, have written to the board questioning its legality.Directors have not officially been appointed as Nored, Northern Electricity Distributors company, sources claimed.The board has been accused of trying to purge the company of one of former Foreign Affairs Minister Hidipo Hamutenya’s most visible supporters, Heita, following the Swapo Extraordinary Congress in May.Heita was reportedly suspended at the urging of Nored chairman Erastus Uutoni for allegedly using company resources to campaign for Hamutenya in the three-horse race for election as Swapo’s presidential candidate.Uutoni is a loyal follower of President Sam Nujoma, who campaigned vigorously against Hamutenya to ensure that his chosen candidate, Lands Minister Hifikepunye Pohamba, emerged as the ruling party’s presidential successor.Uutoni, who is also the Mayor of Ongwediva, already faces charges that he lobbied Swapo’s top leadership in Windhoek to have himself reinstated on the town council after he failed to get elected by his party’s supporters in the May municipal poll.Uutoni has declined to comment on the status of Heita’s case which is reported to have stalled after his lawyers raised the apparent illegality of the board.Heita also declined to comment.The directors suspended Heita saying they would investigate allegations that he allegedly used Nored resources in the Hamutenya campaign.”Uutoni is panicking now, that’s why the case is getting nowhere,” said a person close to Heita.”The so-called directors may have to start answering questions about sitting and travelling fees they have been paid.It is against the Companies Act and against corporate governance to work as a director without formal appointment.”Other directors of Nored are Sackey Akweenda (deputy chairman), Ohangwena Regional Governor Billy Mwaningange, B Hans, Erastus Negonga, KS Matundu and RN Mapenzi.The challenge, if successful, could throw into disarray decisions taken by Nored in the last three years.The Namibian has learned that lawyers handling Heita’s suspension, Metcalfe Practitioners, have written to the board questioning its legality.Directors have not officially been appointed as Nored, Northern Electricity Distributors company, sources claimed.The board has been accused of trying to purge the company of one of former Foreign Affairs Minister Hidipo Hamutenya’s most visible supporters, Heita, following the Swapo Extraordinary Congress in May.Heita was reportedly suspended at the urging of Nored chairman Erastus Uutoni for allegedly using company resources to campaign for Hamutenya in the three-horse race for election as Swapo’s presidential candidate.Uutoni is a loyal follower of President Sam Nujoma, who campaigned vigorously against Hamutenya to ensure that his chosen candidate, Lands Minister Hifikepunye Pohamba, emerged as the ruling party’s presidential successor.Uutoni, who is also the Mayor of Ongwediva, already faces charges that he lobbied Swapo’s top leadership in Windhoek to have himself reinstated on the town council after he failed to get elected by his party’s supporters in the May municipal poll.Uutoni has declined to comment on the status of Heita’s case which is reported to have stalled after his lawyers raised the apparent illegality of the board.Heita also declined to comment.The directors suspended Heita saying they would investigate allegations that he allegedly used Nored resources in the Hamutenya campaign.”Uutoni is panicking now, that’s why the case is getting nowhere,” said a person close to Heita.”The so-called directors may have to start answering questions about sitting and travelling fees they have been paid.It is against the Companies Act and against corporate governance to work as a director without formal appointment.”Other directors of Nored are Sackey Akweenda (deputy chairman), Ohangwena Regional Governor Billy Mwaningange, B Hans, Erastus Negonga, KS Matundu and RN Mapenzi.