Shiimi quiet on Meatco executive’s contract

Finance and public enterprises minister Ipumbu Shiimi is mum on whether the Meat Corporation of Namibia (Meatco) will renew their chief executive’s contract or not.

This is despite Cabinet recently instructing the finance ministry to renew the contract of Meatco chief executive Mwilima Mushokabanji, whose term is set to expire in January next year.

Shiimi says the ministry would not comment on matters pertaining to the Cabinet.

“Cabinet matters are vested with Cabinet, and we are therefore not in a position to comment on such matters,” he says.

Cabinet secretary George Simataa also directed enquiries back to the finance ministry.

According to a Cabinet resolution, the decision not to renew Mushokabanji’s contract was contrary to the Cabinet’s conditions for approving the Meatco board.

However, the Meatco board has so far announced in the media that they will not renew the contract.

“Cabinet directs the Ministry of Finance and Public Enterprises to ensure that the board adheres to the resolutions of Cabinet decisions and to retract the non-renewal notice issued to the current Meatco chief executive,” the resolution says.

The resolution adds: “The vice president informed the Cabinet that the interim board of directors of Meatco issued a letter to the current chief executive on 19 July 2024, stating that his contract as the Meatco chief executive will not be renewed upon expiry in January 2025.

“It was noted that the latter was contrary to the Cabinet’s condition for the approval of the Meatco board,” it says.

Cabinet orders renewal of Meatco CEO’s contract

When contacted last week, Meatco board chairperson Sakaria Nghikembua said he was unaware of the Cabinet’s directive and referred The Namibian to the finance ministry.

“Speak to the Ministry of Finance [and Public Enterprises]. I am not aware of the Cabinet resolution, and the right person to address this is the finance minister,” he said.

PRIVATISE MEATCO

Last year, The Namibian reported that the government was advised to consider establishing a new company where private investors and farmers could hold shares to prevent the collapse of Meatco.

This advice came from Ombu Capital, a consulting firm owned by former Standard Bank Namibia Holdings chief executive, Vetumbuavi Mungunda.

Mungunda, who was also part of the high-level panel on the Namibian economy, had suggested that the state begin privatising public enterprises that are struggling.

Ombu Capital’s recommendation was part of its appointed duty by the Development Bank of Namibia, in consultation with the Ministry of Finance and Public Enterprises, to conduct an in-depth review of Meatco’s operations and propose sustainable business model alternatives.
Mushokabanji has been at the helm of Meatco since 2020.