A leaked board resolution shows that TransNamib has offered its want-away CEO Johny Smith a N$2.4 million salary to remain at the cash-strapped rail entity for another five years.

Smith, it turned out, rejected the offer, and is set to leave the company at the end of this month. Talk in TransNamib corridors, however, is that there is a change in Smith’s heart, now that the N$2.4 billion loan from the Southern African Development Bank and the Development Bank of Namibia to finance the entity’s business plan has been approved. 

The lucrative package came forth despite the company operating on a monthly N$10 million loss. 

Last year, TransNamib also refused to improve employees’ working conditions and wages, citing a lack of funds. “I do not respond to confidential board information that was leaked,” was Smith’s curt response to a request for comment yesterday.

In the resolution, TransNamib board chairperson Theo Mberirua said the board unanimously agreed to retain Smith.

The board resolved to “offer the CEO an annual total cost-to-company (TCTC) of N$2.4 million as part of the CEO’s new employment terms. Additionally, the CEO is eligible for a gratuity in lieu of pension, payable on satisfactory completion of this agreement at the rate of 25% of gross monthly remuneration for each completed month of service,” reads part of the leaked board resolution. 

“In the event of the agreement being prematurely terminated, a pro-rata gratuity shall be paid to the CEO. The gratuity is based on the successful performance of the CEO, and will be aligned accordingly to the set performance targets.”

In the interim, Smith was given a three-months’ contract extension, pending a Cabinet decision on the board’s offer.