Jooste boots out ‘dishonest’ Nida board

SHINOVENE IMMANUEL and CHARMAINE NGATJIHEUE MINISTER of public enterprises Leon Jooste has accused the axed Namibia Industrial Development Agency board chair of failure, operating a parastatal without a business plan and unlawfully appointing an acting boss at the state industrial company.

Jooste confirmed yesterday that he removed the board, comprising lawyer Frans Kwala, unionists Job Muniaro, Diana van Schalkwyk, Koos van Staden and Uparura Kuvare.

Jooste accused Kwala of breaking several governance laws such as failing to submit budgets, illegally appointing an acting chief executive officer and failing to create “good relations” with the government, which owns the agency created to advance Namibia’s industrialisation agenda.

Kwala yesterday said the minister was lying.

Jooste said his decision to remove the board, a first of its kind under the new public enterprises regime, was done in consultation with the Office of the Attorney General.

The removed board was initially appointed from May 2019 to July 2023.

Members have been replaced by former Nedbank Namibia boss Lionel Matthews, Twapewa Kadhikwa, Sikongo Haihambo and Esmerala Katjiauera. The term of office for the temporary board is effective from 28 September 2020 until 28 March 2021.

The minister wrote to individual Nida board members on 28 September.

Jooste told Kwala in the letter on Monday “since your appointment, various transgressions were discovered”.

He accused Kwala of failing to exercise a reasonable degree of care and diligence in the performance of his duties.

“You have failed to act or continue to fail to act honestly in performance of the functions of your office,” the minister said.

He said Kwala was dishonest when he informed the Ministry of Public Enterprises that he shared the annual operating and capital budget for 2020/21 with the Ministry of Industrialisation and Trade.

Jooste said Nida continued to spend state funds without an approved budget.

He also accused Kwala of failing to act with “fidelity, honestly, integrity and in the best interest of Nida”.

According to him, the board failed to enter into performance agreements with management as required by the law.

The appointment of a Nida board director, Uparura Kuvare, as an acting chief executive officer was against the Nida Act, the minister said.

Jooste said the board also failed to consult the industrial ministry before paying the acting Nida chief’s salary and benefits.

“I am satisfied that you have conducted yourself in a manner prejudicial to the interest and reputation of Nida,” Jooste said.

The minister said an analysis showed Nida was not in compliance with the laws that govern public enterprises, and documents with relevant documentation pertaining to it were either missing or non-existent.

The minister explained he had requested the axed board, collectively and individually, to provide the relevant documentation and reasons why they should not be asked to vacate their office as board members.

“The Nida board responded, but my office was not satisfied that the board fulfilled their fiduciary obligations,” he said.

Jooste said Kwala failed to build and maintain relations with his bosses – the government.

Kwala called the public enterprises minister a liar and the allegations levelled against him baseless.

He said his removal comes while he is trying to root out corrupt practices from the troubled organisation.

Kwala claimed the minister sent him two letters dated 7 September and 28 September, which subsequently led to his removal from the board.

However, in the two letters, the allegations against him were different. He said he had responded to the first letter with relevant proof.

Kwala said the ministry never sent the board performance agreements, hence they could not sign the documents.