Epangelo CEO’s contract extended post-retirement age

After 18 years at the helm of Epangelo Mining Company, chief executive officer Eliphas Hawala has been granted a 12-month contract extension – despite having reached the mandatory retirement age and the expiry of his employment contract earlier this year.

Hawala, who has led the state-owned mining company since its establishment in 2008, turned 60 in September 2025, the retirement age stipulated in company employment policies. His contract formally expired on 31 January 2026.

Board chairperson Sencia Kaizemi-Rukata confirmed that although Hawala’s contract had ended, the board resolved to retain him until the end of the year.

“That’s correct. He reached retirement age and the contract has come to an end. We are not going to renew it or give him another five-year term. What we have decided, as a board, is to give him another year, until the end of December 2026,” Kaizemi-Rukata told Namibian Sun.

‘Transition’ cited again

Kaizemi-Rukata said the extension is intended to allow sufficient time to complete the recruitment process for a successor.

She noted that the Epangelo board itself is currently serving on an extended term.

“As a board, our tenure ends in June this year, but we have been given a six-month extension as well. We will use this period to start the recruitment process. Initially, we considered a six-month extension for the CEO, but we realised that there are many outstanding matters. To do justice to the processes, we need enough time,” she said.

Documents seen by Namibian Sun show that Hawala’s most recent contract renewal – signed on 26 January 2021 – was intended to facilitate succession planning ahead of his expected retirement.

His 2021 employment contract reflects an annual remuneration package of N$1.4 million, translating to an estimated monthly salary of about N$117 000.

With the latest extension, Hawala will have served nearly 19 years as chief executive by the end of 2026.

Alleged lobbying

Government sources allege that Hawala has been lobbying the minister of mines for another extension beyond the current one-year arrangement, reportedly arguing that there is no suitable internal candidate with the capacity to assume the role.

Questions sent to Hawala went unanswered at the time of publication.

 The development at Epangelo mirrors a broader pattern within some state-owned enterprises, where chief executives remain in office beyond retirement age or after the expiry of fixed-term contracts.

NamPower managing director Simson Haulofu continues in his role after his contract was extended by former mines and energy minister Natangwe Ithete until December. Haulofu turns 65 in May.

Similarly, National Housing Enterprise (NHE) CEO Gisbertus Mukulu has reportedly sought an extension of his tenure, although this request was rejected by urban and rural development minister James Sankwasa.

Governance concerns raised

Public policy expert Ndumba Kamwanyah said extending the tenure of SOE chief executives beyond retirement age raises governance concerns unless supported by clear and transparent justification.

“From a governance perspective, extending the tenure of a CEO of a state-owned enterprise beyond retirement age and after the expiry of a fixed contract is generally viewed as poor governance unless there are clear, transparent and exceptional reasons,” Kamwanyah said.

“In my opinion, this signals weak succession planning, political interference or overreliance on one individual. It risks undermining morale, investor confidence and public trust, especially in a public entity meant to model accountability.”

He added that boards may face legal and reputational risks if policies relating to retirement, contracts and performance reviews are not strictly followed.

“Best practice would require the board to publicly justify the decision, disclose performance evaluations, confirm compliance with relevant laws and internal policies, and outline a clear, time-bound succession plan,” he said.

“A stronger alternative would have been to appoint an interim CEO while conducting a transparent and competitive recruitment process, ensuring leadership continuity without compromising governance standards," he added.

Epangelo Mining Company was established in 2008 to ensure national participation in the discovery, exploitation and beneficiation of Namibia’s mineral resources.