SOE CEOs slam Cabinet ‘double standards’

Current and former leaders of state-owned enterprises (SOEs) have criticised what they view as Cabinet overreach in the appointment and contract extensions of SOE chief executives, citing the alleged decision to reinstate former Meatco CEO Mwilima Mushokabanji, despite the company’s board opting against his return.The newly appointed Cabinet is reportedly implementing a controversial resolution by the previous administration to offer Mushokabanji a fresh contract - despite there being no formal submission from the board to support such a move. Mushokabanji exited Meatco in January following the expiry of his contract. His time at the company was marked by a series of financial losses, including an operational loss of N$258 million in its group performance for the year-to-date period that started in January 2024. Government pumped N$700 million into the company between 2021 and 2023. According to reports, when Meatco submitted a request for Cabinet approval of its new board, Cabinet allegedly approved the directors - but only on the condition that they reinstate Mushokabanji as CEO. However, after conducting its own evaluation, the new board decided to advertise the CEO position instead.Former finance minister Ipumbu Shiimi is understood to have previously objected to what his ministry viewed as Cabinet’s "bulldozing" of standard governance procedures to force Mushokabanji’s return.The Public Enterprises Governance Act of 2019 stipulates that while Cabinet must approve the appointment of SOE CEOs, such appointments originate from the board of directors, which is appointed by the line minister. There is no legal basis for Cabinet to initiate or enforce CEO reappointments without a board resolution.A Cabinet insider revealed that the contentious matter was abruptly added to the agenda last Tuesday at the recommendation of the Cabinet Secretariat. The Secretariat falls under the authority of Secretary to Cabinet George Simataa, who is said to be a central figure in the Meatco issue.“They argued that the previous Cabinet’s decision had not been implemented and must now be enforced,” the source said. “But why prioritise this particular decision when many others from the previous Cabinet remain unaddressed?”The Meatco board was reportedly scheduled to receive official instruction yesterday to reappoint Mushokabanji.A senior SOE leader, speaking anonymously, accused Simataa of wielding excessive influence over Cabinet affairs.“He has crossed the line from being an administrator to acting like a Cabinet member. If a company fails due to such interference - like we saw with SME Bank - who takes the fall? The board or Cabinet?”Another executive added: “There are hundreds of previous Cabinet decisions that haven’t been implemented - some that affect livelihoods - but this is suddenly a top priority? Why?”Concerns of favouritism were also raised, with some accusing Simataa of pushing a tribal agenda. “He recently promoted his personal assistant to director. They’re from the same region,” a CEO alleged.Others questioned inconsistencies in Cabinet’s involvement in SOE leadership. “Three CEOs had their contracts ended last year. This year, NWR and NUST let their CEOs go without Cabinet interference. Why is Meatco different?”“The BIPA CEO served only one term. No one stepped in for her. Is it because she didn’t have someone from her tribe backing her?” one executive said.When contacted, Cabinet Director Abel Tukuhupwele did not deny plans to return Mushokabanji to the company.“The matter is purely a Cabinet issue,” he said. “As per protocol, only the Minister of Information [Emma Theofelus] is authorised to communicate Cabinet decisions. Since your information didn’t come from her, it makes sense to clarify with your sources.”Political analyst Ndumba Kamwanyah expressed concern about the governance implications of Cabinet’s involvement.“Undermining the board’s authority sets a dangerous precedent,” he warned. “It politicises appointments, weakens transparency, and erodes public confidence in state-owned institutions. Decisions should be merit-based and in the best interest of the entity - not politically driven.”Meatco board chairperson Sakaria Nghikembua yesterday said the company has not yet received the directive to reinstate Mushokabanji.

SOE CEOs slam Cabinet ‘double standards’

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Namibian Sun 2025-04-14

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SOE CEOs slam Cabinet ‘double standards’

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Namibian Sun 2025-04-14

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