2007-10-31Staff Report 2 By Kae Matundu-Tjiparuro WINDHOEK The Chairperson of the Karas Abattoir and Tannery Processors (KAT), Risto Kapenda and two directors, Vilho Nghipondoka and Maru Tjihumino, have been removed from the Board of Directors of KAT with immediate effect. The three have been removed from their positions presumably for delaying the sale of part or whole of KAT assets to Brukarros Meat Processor. They were informed about the decision yesterday through a letter from the Government Institutions Pension Fund (GIPF) signed by its Acting Chief Executive Officer, Neville Field, apparently after discussing the matter with GIPF Chairperson, Hartmut Ruppel, and GIPF Chief Executive Officer, Primus Hango, who was out of town. The decision to remove the three follows a meeting over the weekend where the other KAT directors, for the first time, saw the exact wording of a Memorandum of Agreement of the sale between KAT, GIPF and Brukarros Meat Processor. KAT directors also had to sign the agreement there and then only after two days during which the GIPF representatives were meant to have made them wiser about it. KAT directors have understandably written to the GIPF chairperson after considering the agreement as contained in the resolution presented to them by the GIPF at Friday's meeting. In their letter, they re-affirmed their commitment to the sale partly or wholly of KAT assets. However, they expressed concern about certain issues like the need to consult all key stakeholders, the future of the workforce as well as their own indemnity should they rush into the sale. One key shareholder is the Karas Communal Ostrich Farmers Trust, which is chaired by the Karas Regional Governor, Dawid Boois, with a five percent shareholding. In view of the intended sale that reduces KAT to a mere shell, the directors have been seeking indemnity in the event of probable lawsuits resulting from some remaining contracts. One such contract is with Namco with which the company has a 10-year contract for the supply of 1???_?_'???_?'???_??? 2007-10-31Staff Report 2
