Chicco’s N$57m property deal sinks Amta boss

Former Agro-Marketing And Trade Agency (Amta) managing director Lungameni Lucas “lacked care and judgement” when he approved several questionable deals at the national agriculture company, including a N$57 million property deal with businessman Erastus ‘Chicco’ Shapumba.

This was revealed in a disciplinary hearing outcome dated 20 April.
Amta board chairperson Lorna Shikongo-Kuvare announced yesterday that Lucas has been fired.

“After a thorough internal disciplinary process, the managing director of Amta, Lungameni Lucas, was lawfully dismissed for breach of his contractual obligations to the agency,” Shikongo-Kuvare said.
“Despite the unfortunate outcome, the board of Amta assures the public and its stakeholders that it will continue to uphold the rule of law and strive for good corporate governance on behalf of the agency,” Shikongo-Kuvare further said.

Amta paid N$57 million to Shapumba in deals involving two transactions paid through his company called Erf Two Zero Nine CC. One was for N$45,9 million for a Windhoek northern industrial property and another payment of around N$10,5 million for leasing a plot at Oshikango.

The investigation found that Amta did not conduct due diligence on the Windhoek property, and that the Oshikango land had no description or a title deed.

A disciplinary report said Lunagmeni showed “a serious lack of care and judgement in the transactions relating to erf 209 Lafrenz”.
“The employee concluded the sale agreement directly against a legal opinion obtained and at the highest of four valuations obtained,” the disciplinary report said.

It added: “This conduct amounts to a most serious breach of his fiduciary duties and obligations in his contract of employment. The facts underlying this charge were objectively established and clamour for an explanation by the employee. He elected not to do so”.
Lucas faced charges of failing to protect the interest of the company, failing to act with due diligence, breach of trust and gross negligence.
Lucas’s lawyer, Wihan Brand Jnr from PD Theron and Associates, told The Namibian that his client is not guilty.

“Fair procedures were not followed, so our client did not attend the disciplinary hearing and we excused ourselves from it. We are in the process of launching an appeal against the dismissal. Our client is not guilty of all charges,” Brand said.

OSHIKANGO

Amta agreed to pay N$1,6 million a year – from 2015 to 2020 – to rent a warehouse at Oshikango to store fresh produce at the border town.
But the agency rarely used the property, prompting the board to question why Amta management wasted taxpayers’ money on a building that is gathering dust.

The disciplinary hearing also looked at this transaction.
“The facts underlying charge 6 show that a lease agreement was concluded in respect of an erf in Oshikango which indicates poor judgement and a lack of care,” the disciplinary report said.

It added: “There was no indication of any evaluation or comparison with others even before the transaction was concluded. The evidence was that the erf was unsuitable,” the report added.
“What was concerning is that the same person, Mr Shapumba, is involved as was with the transaction relating to erf 209 Lafrenz”.
Shapumba told The Namibian that his business deals are handled by his lawyers professionally.

“My lawyers deal with agreements, and I’m not always involved. When agreements are done by black people, they always come with issues. Why do I never receive complaints when we deal with white people?” Shapumba asked.

SANCTIONS

The outcome of a disciplinary hearing led by advocate Phillip Barnard found Lucas guilty of all eight counts of misconduct.

“Each and every one of the transgressions are serious. Considered together, it is overwhelmingly in support of the contention by Rosemary Shipiki that the employment relationship has broken down irretrievably,” the sanction seen by The Namibian reads.

According to documents, Shipiki, who is Amta’s board vice chairperson, presented the evidence on behalf of the company, alongside Amta’s chairperson of the board of human resources and stakeholder committee.

“She (Shipiki) testified that she had considered the charges upon which the employee had been found guilty. In her view the charges were very serious as they all related to corporate governance. She testified that the board had lost confidence and trust in the employee and that the employer/employee relationship had broken down irretrievably,” the disciplinary hearing outcome reads.

In January, Lucas denied any wrongdoing and vowed to defend his case. However, the disciplinary hearing outcome now shows that Lucas did not attend it to defend himself.

“The employee Mr Lucas has a clean disciplinary record. This is an important factor to consider. On the other hand, the transgressions by the employee were serious. Upon receipt of the charge sheet the employee could have had no doubt as to the possible ramifications should he be found guilty,’ the outcome reads
It reads further: “He elected not to take proper steps to be in the position to defend himself against the charges.”

The Namibian reported in January on the charges levelled against Lucas, including the disappearance of around N$6,2 million from Amta and N$1,1 million in unauthorised expenditure paid to Walvis bay businessman John Savva.

Lucas was suspended last year for alleged irregularities at an entity that faced allegations of corruption over the past decade.
The board appointed PriceWaterhouseCoopers (PWC) in June last year to conduct an investigation into the company.
The forensic investigation also found that Lucas ‘self approved’ salary advances on four occasions.

On 27 October 2019, Lucas applied and obtained a salary advance of N$16 200, he got N$19 000 on 7 April 2021, N$10 000 on 10 June 20211 and N$20 000 on 6 July 2021.
Lucas was appointed as Amta boss in 2014.

Percy Misika, a retired agriculture ministry executive director, is acting.
The government formed Amta in 2015 as an agency responsible for the marketing and selling of agricultural products on behalf of the state.