Former CEO was paid N$83 768 a month

THE former Agricultural Bank of Namibia Chief Executive Officer, who is suing his employers for N$6 million after they refused to renew his contract, was getting a salary of more than N$83 000 a month.

In court papers filed against AgriBank for alleged unfair dismissal and his unceremonious eviction, Tjeripo Hijarunguru states that his monthly salary package was N$83 768 and that he had expected a 10 per cent increase with the extension of his contract. Hijarunguru said he was suing AgriBank for N$6,14 million, made up largely of the more than N$1 million he had hoped to be paid every year if the contract had been renewed.The salary is believed to have excluded bonuses.He has also filed a personal lawsuit against the Chairman of the AgriBank Board, Dr Franz Stellmacher.Hijarunguru holds Stellmacher responsible for his acrimonious exit from the bank where he was threatened with legal eviction before he finally left.According to papers filed with the District Labour Court, Hijarunguru claimed that Stellmacher “instigated a personal vendetta” against him and took “illegal and malicious steps” to terminate his contract.Hijarunguru alleged that on January 23 the Board had “summarily dismissed me without valid reason, without following fair procedures” or giving him an “opportunity to be heard”.The Board is adamant that it accorded Hijarunguru enough opportunity and that they had made him a “generous offer” in the form of a severance package better than what prescribed in the labour law – even though his contract had expired.Hijarunguru has since taken up a well-paid job at the Ohlthaver & List Group – as a director for business and strategic development.It is not clear whether his present salary matches his package as AgriBank’s top manager.The former AgriBank CEO had defiantly continued to occupy the post beyond December 31.He was appointed AgriBank managing director on May 17 1997 for a five-year period.The contract was extended while AgriBank advertised for his replacement.Controversy surrounded the hunt for a new CEO, with some insiders claiming that Hijarunguru had begun to lobby for political backing from State House in view of the fact that President Sam Nujoma had appointed him in the first place.The rule has changed since and the Board now appoints the CEO together with the Ministers of Finance and Agriculture.As controversy torpedoed the initial recruitment and interviews, Hijarunguru’s contract was extended from April 2003 to June and then from July to the year’s end.The Board then informed him that his contract would not be renewed and asked a senior manager to act in his position while they waited for the Minister of Finance, Saara Kuugongelwa-Amadhila, to give them a response on their choice of a new CEO.Hijarunguru said in court papers that he had “justified, legitimate expectations” that he would be re-appointed for another five years and therefore decided to sue for “serious personal harm and damages”.The Board, Kuugongelwa-Amadhila and the Minister of Agriculture, Water and Rural Development are still involved in talks on the choice of Maureen Hinda, herself a director at AgriBank.She is said to be the Board’s choice after she reportedly emerged as the top applicant in interviews conducted by a Board panel.It is not clear what is holding up the appointment.Stellmacher said they were determined “to see him [Hijarunguru] in court”.Hijarunguru has declined to comment “about AgriBank”.Hijarunguru said he was suing AgriBank for N$6,14 million, made up largely of the more than N$1 million he had hoped to be paid every year if the contract had been renewed.The salary is believed to have excluded bonuses.He has also filed a personal lawsuit against the Chairman of the AgriBank Board, Dr Franz Stellmacher.Hijarunguru holds Stellmacher responsible for his acrimonious exit from the bank where he was threatened with legal eviction before he finally left.According to papers filed with the District Labour Court, Hijarunguru claimed that Stellmacher “instigated a personal vendetta” against him and took “illegal and malicious steps” to terminate his contract.Hijarunguru alleged that on January 23 the Board had “summarily dismissed me without valid reason, without following fair procedures” or giving him an “opportunity to be heard”.The Board is adamant that it accorded Hijarunguru enough opportunity and that they had made him a “generous offer” in the form of a severance package better than what prescribed in the labour law – even though his contract had expired.Hijarunguru has since taken up a well-paid job at the Ohlthaver & List Group – as a director for business and strategic development.It is not clear whether his present salary matches his package as AgriBank’s top manager.The former AgriBank CEO had defiantly continued to occupy the post beyond December 31.He was appointed AgriBank managing director on May 17 1997 for a five-year period.The contract was extended while AgriBank advertised for his replacement.Controversy surrounded the hunt for a new CEO, with some insiders claiming that Hijarunguru had begun to lobby for political backing from State House in view of the fact that President Sam Nujoma had appointed him in the first place.The rule has changed since and the Board now appoints the CEO together with the Ministers of Finance and Agriculture.As controversy torpedoed the initial recruitment and interviews, Hijarunguru’s contract was extended from April 2003 to June and then from July to the year’s end.The Board then informed him that his contract would not be renewed and asked a senior manager to act in his position while they waited for the Minister of Finance, Saara Kuugongelwa-Amadhila, to give them a response on their choice of a new CEO.Hijarunguru said in court papers that he had “justified, legitimate expectations” that he would be re-appointed for another five years and therefore decided to sue for “serious personal harm and damages”.The Board, Kuugongelwa-Amadhila and the Minister of Agriculture, Water and Rural Development are still involved in talks on the choice of Maureen Hinda, herself a director at AgriBank.She is said to be the Board’s choice after she reportedly emerged as the top applicant in interviews conducted by a Board panel.It is not clear what is holding up the appointment.Stellmacher said they were determined “to see him [Hijarunguru] in court”.Hijarunguru has declined to comment “about AgriBank”.