WINDHOEK – The SWAPO Party Youth League (SPYL) has questioned the reasons and the validity of the apparent decision to suspend TransNamib’s Chief Executive Officer (CEO), Sara Naanda. This follows local media reports regarding the imminent suspension, Naanda, who was reported to have appeared before the board on Monday morning.
“If members of the new Board (some of them) are taking decisions on the basis of information received from managers within TransNamib who are against the CEO, can it be expected that the same board members would receive similar information from the cleaners and artisans of TransNamib? What is the crime that the CEO has committed?” asked SPYL Secretary, Dr Elijah Ngurare. In a statement titled “Build and not destroy young Namibian professionals” Dr Ngurare mentioned that Naanda was appointed less than two years ago by a board, which is now replaced with a new board. “The Terms of Reference for this board appears not to advance the operations of TransNamib but it is rather to get rid of the CEO for reasons best known by the board. However, it begs the question, how come the new board knows more about TransNamib than the CEO? Who sabotaged the railway between Aus and Luderitz; who is not happy with the extension of the railway from Tsumeb to Oshikango? Is there a white cartel in TransNamib which wants to reclaim lost glory?” asked Dr Ngurare in his statement that was sent out late yesterday afternoon.
Just more than 60 days after being appointed, TransNamib’s new board of directors announced an ambitious 180-day turnaround plan that hopes to result in the loss-making state-owned enterprise generating a positive cash flow of N$12 million a month. Announcing the aggressive turnaround strategy, the company’s Board Chairperson, Dr Pieter Oosthuizen, said: “After 180 days TransNamib will be self-sustaining and even show a profit. The management team will then embark on phase 2 of transforming TransNamib into an efficient and well functioning State enterprise”. According to Dr Oosthuizen, the Minister of Works and Transport, Erkki Nghimtina, fully supports the turnaround plan and has therefore made available N$400 million that the Board requested to implement the ambitious plan. Dr Oosthuizen is also the Acting CEO of Road Construction Company (RCC).
“The new Board has been tasked by the Minister to use its diverse skill base in order to improve the current financial performance of TransNamib. We are fully committed to this mandate,” remarked Board Member and Board spokesperson, Dantagos Jimmy-Melani, at the recent launch of the turn-around strategy. TransNamib subsequently reported the appointment of Johan Piek as the project manager for the turnaround strategy.
“We therefore must call upon the line minister to restore confidence in TransNamib; to withdraw the appointment of the white consultant; to allow the substantive CEO to do her contractual work unhindered; to direct the board to acquaint itself with expectations of corporate governance and not abuse their powers; and finally to ensure that all dubious sale of TransNamib properties is reversed and entrusted back to TransNamib. We further appeal to the line minister to put a stop to dual CEOs at Air Namibia, TransNamib and RCC. Many of our people in the informal settlements and rural areas would welcome the saving accruing from this unnecessary duplication,” remarked Dr Ngurare.
“Finally, TransNamib must reclaim its strategic role as a transportation solution to all Namibians, through rail and road. Those in charge of TransNamib must refrain from pursuing personal gratification at the expense of service delivery to all Namibians especially those in rural areas”, added the head of the SPYL.
“To believe that 24 years after independence, only whites can turn around Air Namibia, TransNamib, NWR, NamWater or any parastatal for that matter is an insult to numerous young black professionals telling them unfortunately they are not good enough. This inferiority complex must be condemned with the contempt it deserves. It is a betrayal of the Namibian revolution for us to sit idle and look at how our young Namibian professionals are destroyed instead of being moulded into present and future productive citizens of Namibia,” concluded Dr Ngurare.
During the last five years TransNamib’s revenue has declined by 14 percent, while cost of sales and operating expenses have increased by 6 percent and 7 percent respectively. The company has not been profitable for the last four consecutive years, with losses increasing year-on-year. During 2013 alone TransNamib experienced a loss of N$183 million while it is expected to announce a loss of N$126 million for 2014.
By Edgar Brandt