Ritter drags Namfisa to High Court

THE former CEO of the Namibia Financial Institutions Supervisory Authority (Namfisa), Rainer Ritter, has issued a summons against the financial watchdog to enforce a settlement agreement reached at the end of his hearing two months ago.

According to staff at the High Court, Ritter issued the summons on Friday, but the documents are not open to the public until the matter is taken to court. Namfisa has confirmed receipt of the summons.Ritter’s hearing, which began on May 11 had ended by May 14 with the reaching and confirmation of a settlement, the unexplained withdrawal of the settlement by Namfisa after briefing Finance Minister Saara Kungongelwa-Amadhila, and the subsequent withdrawal from the case by Namfisa’s lawyers at the time – Profysen Muluti of Muluti and Associates (who was instructing Advocate Gerson Narib).The hearing was, according to Namfisa, based on the preliminary findings of an investigation by Ernst and Young into various alleged irregularities at the financial authority.In terms of the settlement reached, Namfisa was to withdraw all the charges against Ritter, who was to resign from his position as CEO along with a severance package reportedly in the vicinity of half a million dollars.The settlement figure reportedly covers a duration of six months salary payment and all the benefits in terms of Ritter’s employment agreement.The summons presumably claims for payment in terms of the settlement and for associated legal fees.Namfisa’s current lawyer, Shafimana Ueitele of Ueitele and Hans Legal Practitioners, confirmed that he had received the summons documents from his client yesterday, but would not comment on the contents thereof, stating that he could not discuss the matter while litigation was taking place.He noted, however, that because Namfisa was being sued, the board would have to come together to decide on whether or not to defend the summons. He said that he had requested a meeting of the board to receive their instructions.Questions posed to Board Chairperson, Rick Kukuri regarding the summons were directed to Ueitele.According to the legal process, Namfisa has 10 days from when the summons was served – until next Monday – to respond as to whether or not it will defend the matter.Ritter yesterday declined to speak to The Namibian about the matter.Nevertheless the former CEO (in terms of the settlement) has stood his ground on the validity of the settlement, making his stance unambiguous by issuing the summons. In a statement issued at the end of the hearing on May 14, he maintained that ‘I wish to make it clear that Namfisa would have no choice in this regard as a binding agreement has been reached.’ Ritter and his legal team turned down subsequent requests by Namfisa to resume the hearing.Contacted for comment his defence lawyer, Dave Smuts – instructed by Hettie Garbers-Kirsten – said that he was unable to comment, as the summons had been issued, and he would now be serving as a witness in the case. This rendered him unable to represent Ritter or to comment on the matter.Garbers-Kirsten could not be reached for comment in this regard, and it is unknown whether Ritter has assembled a new legal teamRETRACTION DEMANDEDMeanwhile, according to reports in a local weekly, Muluti last week demanded a retraction from Namfisa Board Chairperson, Rick Kukuri, for statements made regarding the controversial ‘deal or no deal’ settlement.Muluti confirmed to The Namibian yesterday that he had written a letter, but stated categorically that he would not discuss the letter publicly, adding that ‘it is unfortunate that the letter reached the media’.Kukuri also preferred not to comment, referring questions to Ueitele instead.The weekly newspaper reported that in response to Kukuri’s comments – i.e. that the settlement reached was meant to be a proposed agreement for final approval by the board, and that a settlement would not have served anyone’s interests – Muluti demanded that the correct facts be made to the media, describing the statements as defamotory.Asked whether the report was accurate in terms of his demands and the chronology of events of the hearing reported, Muluti would not comment, stating that ‘basically what happened during the hearing is privileged information between me and my then client (Namfisa)’.nangula@namibian.com.na