Walvis stuns with another golden handshake

WALVIS Bay’s former General Manager of Human Resources and Corporate Services, John Mukoya, who terminated his five-year contract with the municipality last year, received a payout equal to double his annual salary – amounting to just short of N$1,1 million.

This is revealed in Auditor General Junias Kandjeke’s 2007 audit report for the Walvis Bay Municipality, which was tabled at Parliament earlier this week. Kandjeke says that, according to the employment contract with a general manager of such a department, Mukoya was supposed to receive a payment of 30 per cent of his gross annual salary package upon non-renewal of contract.Council decided in February 2007 not to renew his contract.”It however appears that [Mukoya] was compensated with a 200 per cent gratuity amounting to N$1 098 333 before income tax deduction,” the report notes.To add fuel to the fire, Kandjeke noted former Walvis Bay CEO Augustinus Katiti’s resignation payout of about N$2,8 million, stating that it appears that the CEO was compensated with 30 months’ salary amounting to N$2 781 330 upon resignation, and that no income tax was deducted.He said according to the employment contract of a CEO, the CEO may terminate the contract by giving 60 calendar days’ notice.Katiti gave notice of his resignation on March 27 2007, stating that his last working day at the office would be April 2 2007.Both Katiti’s and Mukoya’s payouts (amounting to about N$3,9 million, or about 2,5 percent of the actual expenditure of the Walvis Bay municipality for 2007) were regarded by the AG as “fruitless, unauthorised or avoidable expenditure”; while also being placed under the heading of “irregularities and losses”.According to Nolito Marques, spokesperson for the Walvis Bay Municipality, the report has not yet been tabled before the Council, and until that happened the Council would not be able to comment on the findings.Kandjeke says that, according to the employment contract with a general manager of such a department, Mukoya was supposed to receive a payment of 30 per cent of his gross annual salary package upon non-renewal of contract.Council decided in February 2007 not to renew his contract.”It however appears that [Mukoya] was compensated with a 200 per cent gratuity amounting to N$1 098 333 before income tax deduction,” the report notes. To add fuel to the fire, Kandjeke noted former Walvis Bay CEO Augustinus Katiti’s resignation payout of about N$2,8 million, stating that it appears that the CEO was compensated with 30 months’ salary amounting to N$2 781 330 upon resignation, and that no income tax was deducted.He said according to the employment contract of a CEO, the CEO may terminate the contract by giving 60 calendar days’ notice.Katiti gave notice of his resignation on March 27 2007, stating that his last working day at the office would be April 2 2007.Both Katiti’s and Mukoya’s payouts (amounting to about N$3,9 million, or about 2,5 percent of the actual expenditure of the Walvis Bay municipality for 2007) were regarded by the AG as “fruitless, unauthorised or avoidable expenditure”; while also being placed under the heading of “irregularities and losses”.According to Nolito Marques, spokesperson for the Walvis Bay Municipality, the report has not yet been tabled before the Council, and until that happened the Council would not be able to comment on the findings.