From treasured asset to chronic liability

While once-admired rail operator TransNamib continues to be dogged by operational problems and an ongoing employee strike that threaten its existence, former managers say the company’s woes are far greater than initially thought.

Lucrative properties being alienated for peanuts, employees setting up competing businesses and poor working relations amongst staff members - these are but some of the contents of the cocktail that best describes TransNamib’s fall from grace.

This according to former high-ranking officials who were at the helm of the public railway firm. While some opted not to share their experiences - like former acting CEO Hippy Tjivikua who bluntly refused to comment, others spoke on condition of anonymity while a select few were unafraid of opening up about their time at the company.

TransNamib’s performance has plummeted so drastically over the past two decades that the majority of Namibians who once considered trains as their travel mode of choice reluctantly turned to more expensive options.

Even the rail outfit’s highly profit-driven commercial clients have opted to move their goods from rail to road, despite the high costs involved.

Govt’s to blame

TransNamib has failed to transform into a market-responsive company while maintaining a strong technical capacity, the rail operator’s former general manager Mike Kavekotora said when approached for comment.

He highlighted the importance of understanding how and why TransNamib descended into its current state and why there has been little accountability from those responsible.

"I place the blame squarely on government for not having developed a long-term strategy for the company. They allowed the railway infrastructure to dilapidate to alarming levels.

"The law is clear that it's the government's responsibility to maintain the railway, but they failed dismally," he said in an exclusive interview with Namibian Sun.

Having worked for the railway parastal for almost two years, Kavekotora said the company has been grossly undercapitalised since independence, both in terms of rolling stock and railway infrastructure.

Honeymoon ended in tears

TransNamib also had a booming road operation, with trucks painted the company’s unmissable yellow criss-crossing the country’s vast road network to deliver goods.

This honeymoon soon ended in tears after some employees saw an opportunity to line their own pockets by starting trucking businesses.

TransNamib did not deal well with this competition, Kavekotora said.

“The challenge was the existence of strong competition from former employees who went into the trucking business in direct competition with the company.”

The situation became so dire that the company ended up living from hand to mouth in the form of government bailouts to stay afloat, he said.

The railway company currently operates on a N$10 million monthly loss and has received bailouts amounting to billions over the past few years.

According to Kavekotora, TransNamib’s fortunes can be salvaged, provided it partners with the private sector because “it is one of those strategic assets that Namibia cannot afford to liquidate”.

Policies disregarded

During her time as acting CEO, Eugenia Taylor-Tjaronda said executives often operated with the attitude that company policies are mere guidelines.

From 2010 to 2017, she served as the company's secretary before being fired due to “irreconcilable differences”.

"No responsible board would - or should - ignore legitimate complaints about misdeeds or transgressions committed by executive management, especially if there is reasonable evidence pointing to wrongdoing," she said.

Taylor-Tjaronda said having a good working relationship with the staff is crucial for TransNamib's survival.

"Good working relationships are built on mutual trust and respect. You cannot enforce or demand trust and respect by your title and position. It must be earned by leading by example.”

Red flags

During her 10 years at the railway operator, she said she highlighted red flags to management on numerous occasions.

"At times, comprehensive reports were co-signed by individual directors of the relevant board. Unfortunately, those complaints and/or warnings were mostly ignored and no action was taken.

“The most recent feedback was simply ‘these are administrative matters’,” Taylor-Tjaronda said.

However, the railway giant does have the potential to become one of the most profitable public enterprises in the country, she said.

"To achieve that, dedicated support from the shareholder is required, and board members and executives must be appointed solely on merit and based on proven track records in the railway industry."