Mutorwa disempowers TransNamib board

TRANSPORT minister John Mutorwa has clipped the wings of the TransNamib board after being tipped off that they wanted to suspend the parastatal’s chief executive officer last week.

This is the latest episode of the sour relationship between Mutorwa and the outgoing board that accused him of interference last year. The minister confirmed to The Namibian this week that he wrote to the board on 18 January 2019, informing them not to make any major decisions while they are in office.

Even though the board’s three-year term expired on 15 November 2018, the TransNamib Act allows them to make decisions until a new board is appointed.

Mutorwa said he was informed that the board, despite warning them not to hold meetings in camera, planned to have one last Friday to discuss the fate of TransNamib’s chief executive, Johny Smith.

Mutorwa further said in his letter that no in-camera sessions will be allowed as all board meetings should and must also be attended by the chief executive.

“I could clearly see what the intention [suspending Smith] for that meeting was. These people had three years in the office. They did not achieve anything, but accuse people of corruption without taking action,” the minister said this week during a brief interview on his relationship with the TransNamib board.

According to Mutorwa’s letter, the board was not supposed to discuss the N$2,5 billion business plan which was approved in December 2018. He said the incoming board will implement the business plan.

“No matter related to any employment contracts, and the employment of personnel at TransNamib. No other discussions on all legal matters, which can impact the organisation beyond the most recent board’s period,” the minister said.

“No discussion on all legal matters, which resulted from the actions or performance of the company and its board during their tenure, which expired on 15 November 2018,” Mutorwa added.

There were concerns by some government officials that the minister’s decision to block the board from its work could shield a corruption-accused executive from being held accountable.

The board wanted to discipline the parastatal’s strategic executive, Hippy Tjivikua, for his role in dubious tenders at the rail parastatal.

reported last year that a report stated that Tjivikua was part of a scheme that paid N$24 million for tenders that were supposed to cost around N$3 million.

Sources suspect that Tjivikua could get off the hook if a new TransNamib board consist of directors who would be sympathetic to him.

There are also concerns that Mutorwa is encouraging Smith to continue defying the board, and entering a business transaction without board approval.

Smith declined to comment yesterday.

Mutorwa said he is not defending any official.

“There is no ill-intention from my side,” the minister said, adding that the incoming board was expected to be approved by Cabinet this week.

Mutorwa and public enterprises minister Leon Jooste were divided on whether to extend the term of the board last year.

Jooste advised Mutorwa to extend the board’s term until a new board is appointed, but the transport minister had his reservations.

Mutorwa asked attorney general Albert Kawana on whether he can extend the term of the board until a replacement is found.

Kawana advised the minister on 12 December 2018 that TransNamib’s articles of association allow the board to stay on until it is replaced.

This allowed the board to continue in charge, but was disempowered by Mutorwa.

Jooste was unreachable for comment. TransNamib’s deputy chairperson, Elize Angula, declined to comment on Mutorwa’s directive, but denied that the board wanted to suspend the chief executive.

reported last year that the TransNamib board had asked Mutorwa to stop interfering in its affairs because his actions were undermining the board.

“Honourable minister, it has become a matter of great concern to the board that the portfolio minister [Mutorwa] seems to operate as a de facto board, in that he exercises power that falls within the purview of authority of the board, in that he endorses and supports even the refusal by the chief executive officer to accept instructions of the board,” TransNamib board chair Paul Smit wrote to Mutorwa last year.

The latest twist adds to the battle for the soul of the rail parastatal which has continued to live off government bailouts for decades.