Sacked CEO sues for N$6m

THE sacked Chief Executive Officer of the Agricultural Bank of Namibia (AgriBank) is suing the State bank for N$6 million citing unfair dismissal.

Tjeripo Hijarunguru set his lawyers onto AgriBank a month after he was ejected from the top post in January. His removal followed open defiance of the Board of Directors which refused to renew his contract when it expired at the end of December.Hijarunguru is said to be demanding that AgriBank pay him damages amounting to N$6 million, including N$50 000 that should be paid personally by the Board Chairman Dr Franz Stellmacher.Stellmacher confirmed the lawsuit but could not provide a breakdown of the multi-million-dollar lawsuit.”We are going to see him in the Labour Court,” Stellmacher said yesterday.The Chairman said the AgriBank Board had offered Hijarunguru what it considered to be a generous severance package – which was double the basic set in the Labour Act.”He refused to take it.Our consciences are clear, we made him a good offer but perhaps money was more important than respect.It’s a pity he had to go that way,” Stellmacher said.Hijarunguru, who has since joined the Ohlthaver & List Group as director for business and strategic development, yesterday declined to make “any comment whatsoever on AgriBank”.With an annual package of more than N$800 000, according to insiders, Hijarunguru would have a received more than a million dollars for the six and a half years spent at the helm of the country’s agricultural financier.Hijarunguru was virtually forced out of office after he refused to go, arguing that the Board had no right to fire him.He was appointed to the job by President Sam Nujoma, as the law prescribed at the time.The law was later amended to give appointing powers to the directors, who must get approval from the Ministers of Finance and Agriculture.Insiders said Hijarunguru had refused to vacate office largely because he believed he had backing from State House.But, he has denied trying to use his political connections to cling onto the job.The Board has blamed the Minister of Finance, Saara Kuugongelwa-Amadhila, for the crisis, saying she dragged her feet after it submitted the name of their preferred choice of CEO to her for approval last year.The Namibian understands that Kuugongelwa-Amadhila has questioned the proposed appointment of Moureen Hinda, a member of the AgriBank Board, who was recommended as the successful applicant by a panel of interviewers.It is not clear what the Minister’s objection is, and she has not responded to several requests for comment made several weeks ago.His removal followed open defiance of the Board of Directors which refused to renew his contract when it expired at the end of December.Hijarunguru is said to be demanding that AgriBank pay him damages amounting to N$6 million, including N$50 000 that should be paid personally by the Board Chairman Dr Franz Stellmacher.Stellmacher confirmed the lawsuit but could not provide a breakdown of the multi-million-dollar lawsuit.”We are going to see him in the Labour Court,” Stellmacher said yesterday.The Chairman said the AgriBank Board had offered Hijarunguru what it considered to be a generous severance package – which was double the basic set in the Labour Act.”He refused to take it.Our consciences are clear, we made him a good offer but perhaps money was more important than respect.It’s a pity he had to go that way,” Stellmacher said.Hijarunguru, who has since joined the Ohlthaver & List Group as director for business and strategic development, yesterday declined to make “any comment whatsoever on AgriBank”.With an annual package of more than N$800 000, according to insiders, Hijarunguru would have a received more than a million dollars for the six and a half years spent at the helm of the country’s agricultural financier.Hijarunguru was virtually forced out of office after he refused to go, arguing that the Board had no right to fire him.He was appointed to the job by President Sam Nujoma, as the law prescribed at the time.The law was later amended to give appointing powers to the directors, who must get approval from the Ministers of Finance and Agriculture.Insiders said Hijarunguru had refused to vacate office largely because he believed he had backing from State House.But, he has denied trying to use his political connections to cling onto the job.The Board has blamed the Minister of Finance, Saara Kuugongelwa-Amadhila, for the crisis, saying she dragged her feet after it submitted the name of their preferred choice of CEO to her for approval last year.The Namibian understands that Kuugongelwa-Amadhila has questioned the proposed appointment of Moureen Hinda, a member of the AgriBank Board, who was recommended as the successful applicant by a panel of interviewers.It is not clear what the Minister’s objection is, and she has not responded to several requests for comment made several weeks ago.