State of NHE worries employees
National Housing Enterprise (NHE) employees staged a peaceful demonstration this week to voice concerns that the institution's management may result in it following the same route as other failed parastatals that were liquidated.
In a letter written to urban and rural development minister, Erastus Uutoni, employees said under the administration of chairperson Sam Shivute and CEO Gisbertus Mukulu, the company has deteriorated to such an extent that it has "lost its relevance."
"During Mukulu's reign, NHE only constructed 600 houses in five years against 6250 houses as per your strategic plan.
“When he took over, NHE's financial reports were current, however, since then no financial reports have been produced, as a result, audited financial reports are outstanding for the 2017, 2018, 2019, and 2020 financial years," the statement read.
Air Namibia mirror
The employees compared the state of the company to that of Air Namibia, saying it is a disaster waiting to happen.
NHE is further accused of using terms like "we will not be able to pay salaries beyond two years" loosely.
"The loan book, which is the main source of revenue for NHE, is shrinking daily. Very few new loans are added to the loan book to make the business sustainable. As a result, the future existence of NHE is under threat.
“During a staff meeting, also attended by chairperson Sam Shivute, the CFO informed us that NHE will not be able to pay salaries beyond the next 2 years," the statement notes.
The employees say they fear possible retrenchments, which are spoken of regularly in the office.
Among other accusations, NHE is under scrutiny for plots that it allegedly bought for N$1.3 million more than the valuation cost knowingly in Gobabis.
"Despite claiming that the institution does not have funds, the institution involves itself in avoidable expenditures such as spending more than N$5 million on legal fees for one employee, buying plots in Gobabis, and paying N$1.3 million more than the valuation cost knowingly."
No money
NHE spokesperson, Tuafi Shafombabi said that every problem staff brought to the company's attention has been carefully looked at and discussed.
"We had a meeting regarding the petition and the outcome is still being looked over by the board members. By the end of the week, we will give out a statement," she said.
According to Shafombabi, one of the major issues they have is salary increments, and she attributes this to a wounded economy.
Employees have asked for, among other things, the immediate payment of a once-off 60% on their basic salary.
"We want a review of the CEO's re-appointment for another five-year term and an immediate appointment of the new board of directors because the current board's term expired last September."
The company has been given seven working days to revert to its employees.
In a letter written to urban and rural development minister, Erastus Uutoni, employees said under the administration of chairperson Sam Shivute and CEO Gisbertus Mukulu, the company has deteriorated to such an extent that it has "lost its relevance."
"During Mukulu's reign, NHE only constructed 600 houses in five years against 6250 houses as per your strategic plan.
“When he took over, NHE's financial reports were current, however, since then no financial reports have been produced, as a result, audited financial reports are outstanding for the 2017, 2018, 2019, and 2020 financial years," the statement read.
Air Namibia mirror
The employees compared the state of the company to that of Air Namibia, saying it is a disaster waiting to happen.
NHE is further accused of using terms like "we will not be able to pay salaries beyond two years" loosely.
"The loan book, which is the main source of revenue for NHE, is shrinking daily. Very few new loans are added to the loan book to make the business sustainable. As a result, the future existence of NHE is under threat.
“During a staff meeting, also attended by chairperson Sam Shivute, the CFO informed us that NHE will not be able to pay salaries beyond the next 2 years," the statement notes.
The employees say they fear possible retrenchments, which are spoken of regularly in the office.
Among other accusations, NHE is under scrutiny for plots that it allegedly bought for N$1.3 million more than the valuation cost knowingly in Gobabis.
"Despite claiming that the institution does not have funds, the institution involves itself in avoidable expenditures such as spending more than N$5 million on legal fees for one employee, buying plots in Gobabis, and paying N$1.3 million more than the valuation cost knowingly."
No money
NHE spokesperson, Tuafi Shafombabi said that every problem staff brought to the company's attention has been carefully looked at and discussed.
"We had a meeting regarding the petition and the outcome is still being looked over by the board members. By the end of the week, we will give out a statement," she said.
According to Shafombabi, one of the major issues they have is salary increments, and she attributes this to a wounded economy.
Employees have asked for, among other things, the immediate payment of a once-off 60% on their basic salary.
"We want a review of the CEO's re-appointment for another five-year term and an immediate appointment of the new board of directors because the current board's term expired last September."
The company has been given seven working days to revert to its employees.
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