TransNamib in dire straits

TRANSNAMIB is facing a serious financial crisis after banks withdrew its overdraft facilities citing the instability of its management.

The Namibian has it on good authority that commercial banks became itchy after the new Trans­Namib board suspended Chief Executive Officer Titus Haimbili until the end of October. “They don’t want to hear about an acting CEO.We do understand the situation the banks are in,” said one manager.At least four sources confirmed that the parastatal faces a serious cash-flow crisis, which could result in the non-payment of bills if the situation continues.The company’s directors and workers are in a standoff after the board refused to rescind Haimbili’s suspension.Board chairman Festus Lameck said they were investigating issues of corporate governance and that Haimbili was not “above the law”.The board has appointed Marketing General Manager Mike Kavekotora to act as CEO during Haimbili’s suspension.However, commercial banks are refusing to acknowledge his decision-making powers and claim that there is too much instability for them to provide overdraft facilities.The Namibia Transport and Allied Workers’ Union, through its president Dawid Tjombe, has declared war on the company.They are preparing for a strike.”We need to follow certain provisions in the Labour Act like giving the company notice.We also want to ensure that all our workers countrywide know about the date and time for the strike.It must be well co-ordinated,” Tjombe said.The workers accuse Lameck of acting with conflict of interest since he also applied for the job before Haimbili was appointed.The first sitting the new board placed Haimbili on two months’ “special leave” to investigate allegations related to corporate governance.Sources said Haimbili might have appointed individuals whom he favoured above those who did well in job interviews.Tjombe demanded that the board publicly reveal the allegations being investigated against Haimbili and that the union be represented on the investigation team.Lameck said the union, through its General Secretary John Kwedhi, had been briefed about Haimbili’s suspension before it was announced.”They don’t want to hear about an acting CEO.We do understand the situation the banks are in,” said one manager.At least four sources confirmed that the parastatal faces a serious cash-flow crisis, which could result in the non-payment of bills if the situation continues.The company’s directors and workers are in a standoff after the board refused to rescind Haimbili’s suspension.Board chairman Festus Lameck said they were investigating issues of corporate governance and that Haimbili was not “above the law”.The board has appointed Marketing General Manager Mike Kavekotora to act as CEO during Haimbili’s suspension.However, commercial banks are refusing to acknowledge his decision-making powers and claim that there is too much instability for them to provide overdraft facilities.The Namibia Transport and Allied Workers’ Union, through its president Dawid Tjombe, has declared war on the company.They are preparing for a strike.”We need to follow certain provisions in the Labour Act like giving the company notice.We also want to ensure that all our workers countrywide know about the date and time for the strike.It must be well co-ordinated,” Tjombe said. The workers accuse Lameck of acting with conflict of interest since he also applied for the job before Haimbili was appointed.The first sitting the new board placed Haimbili on two months’ “special leave” to investigate allegations related to corporate governance.Sources said Haimbili might have appointed individuals whom he favoured above those who did well in job interviews.Tjombe demanded that the board publicly reveal the allegations being investigated against Haimbili and that the union be represented on the investigation team.Lameck said the union, through its General Secretary John Kwedhi, had been briefed about Haimbili’s suspension before it was announced.

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