After terminating the employment contract of former managing director Immanuel Mulunga, board chairperson of the National Petroleum Corporation of Namibia (Namcor) Florentia Amuenje said the national entity has the right to deduct from his payout.
“Such amounts as are due to it from you on the date of termination of your contract of employment,” reads the termination of employment agreement directed to Mulunga seen by this publication.
The beleaguered former executive last year faced a disciplinary harbinger while on suspension for other charges for his alleged role in a N$53 million transaction between Namcor and military contractor Enercon. This was the transaction that on Thursday evening brought forth his dismissal from the helm of the petroleum corporation.
Mulunga’s 2022 payment to Enercon would have allowed the national oil parastatal to take over the fuel supply contract and related infrastructure business with the Namibian Defence Force. Enercon cancelled its agreement with Namcor due to military objections, but failed to repay the N$53 million immediately.
Enercon is owned by brothers Peter and Malakia Elindi, as well as military company August 26 Holdings.
The Namcor chairperson stated that Mulunga’s hearing was scheduled for January and March 2024, but he chose not to comply. A corporate notice included that he should indicate in writing whether he was pleading guilty or not guilty to the charges levelled against him within three working days. He was furthermore requested to give consent that Gerhard Maritz, a retired Supreme Court judge, be appointed to preside over the hearing of charges levelled against him. He apparently failed to respond to this directive.
Another letter directed to Mulunga’s legal practitioners requested the same response, and set the deadline as 2 February 2024, with failure to respond this time being taken as that he had pleaded not guilty.
“In view of your failure to respond and considering that without your consent, an independent chairperson could not be appointed to conduct a conventional disciplinary hearing in respect of the charges, the board presented these allegations against you to an independent legal practitioner,” Amuenje added.
She said an independent person rendered an opinion on 23 May 2024 that the absence of countervailing evidence on “your part, you may be found guilty of fraud and/or gross negligence, and/or negligence”.
Based on the opinion, Amuenje said the board resolved to terminate Mulunga’s contract of employment on two months’ notice on 15 October 2024.
She added that he is not required to return to office during the period of notice, and is also not required to perform any duties.
Mulunga is expected to be paid until 15 August 2024, two months’ remuneration in lieu of notice, and all benefits he is entitled to on the basis that the contract has been terminated for misconduct after refusal to participate in a “fair process, will be paid”.
Amuenje continued that he knew or ought to have known or negligently failed to establish that Enercon was the lawful owner of the said assets, and that these assets would not benefit Namcor.
Furthermore, an internal valuation of the assets done by the employees was also questioned and labelled just a “sham”, as it could not be established if the employees concerned were qualified and registered with the Engineering Council of Namibia to carry out such a valuation.
“The external valuation of the assets purportedly conducted by Seal Consulting Engineers was equally a sham,” said the chairperson. This is as Seal Consulting Engineers were not officially requested, and there was no payment made to them. Seal Consultancy Engineers apparently did not even make respective visits, and did not verify whether assets really existed.
Mulunga further signed the asset purchase agreement without informing the board of the transaction in question.
At the time of going to print, he had not responded to questions put to him by this publication. -mndjavera@nepc.com.na
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