Cabinet ignores AG advice in Meatco CEO saga

Both President Netumbo Nandi-Ndaitwah and her predecessor Nangolo Mbumba were made aware of a legal opinion by Attorney General (AG) Festus Mbandeka stating that it is unlawful for Cabinet to compel the Meatco board of directors to reappoint former CEO Mwilima Mushokabanji — whose contract ended in January.Despite this, newly appointed agriculture minister Mac Hengari last week controversially instructed the Meatco board to suspend its ongoing recruitment process and reinstate Mushokabanji as CEO, raising concerns of executive overreach.The legal opinion was commissioned by former public enterprises minister Ipumbu Shiimi, with the blessing of then-president Mbumba, after Cabinet had instructed him to compel the Meatco board to offer Mushokabanji a new contract.At the time, the board had decided not to automatically renew Mushokabanji’s contract after conducting an internal assessment. Instead, it chose to advertise the position and invite applications from other qualified candidates.Unlawful instructionAccording to information obtained by Namibian Sun, in July 2024 Cabinet directed Shiimi to ensure the board reverses its decision. Sources point to the Cabinet secretariat, led by Secretary to Cabinet George Simataa, as the driving force behind efforts to pressure the board into reinstating Mushokabanji.In addition, Cabinet also instructed Shiimi to terminate the term of the interim board that opted not to renew Mushokabanji’s contract, and to initiate the appointment of a new substantive board for a three-year term.In a Cabinet memorandum dated 11 December 2024, Shiimi recounted the sequence of events: “Subsequent to the Cabinet decision, I, as the minister of finance and public enterprises, consulted the chairperson of the Meatco board of directors to seek the implementation of the Cabinet directive. The chairperson informed me that the board had received legal advice stating that the power to decide on the CEO’s contract rests solely with the board — not with the minister.”He continued: “Upon receiving such feedback, I consulted His Excellency President Nangolo Mbumba to request permission to seek legal advice from the attorney general on how to proceed. Permission was granted.”Shiimi further noted that he had informed then-Vice President Netumbo Nandi-Ndaitwah of his intent to consult the AG — and that she was fully briefed on the process.Mbandeka clarificationIn his subsequent legal opinion, AG Festus Mbandeka was unequivocal that the power to renew the Meatco CEO’s contract resides with the board — not with the minister or Cabinet.“There is no provision in the Meat Corporation of Namibia Act, 2001 (Act No. 1 of 2001), nor in the Public Enterprises Governance Act, 2019 (Act No. 1 of 2019), that empowers the minister to direct the board on whether or not to reappoint the incumbent CEO. Such powers are legally vested in the board,” the opinion states.Shiimi’s briefing to Cabinet included this clarification: “The board of directors of Meatco has made a final decision on this matter, and in law, it cannot revisit or revoke that decision unless authorised by law. Such a decision can only be overturned by a court of law.”He concluded by recommending that Cabinet formally acknowledge the legal constraints outlined by the attorney general.“It is recommended that Cabinet notes the legal advice from the AG to the effect that neither the Meatco Act nor the Public Enterprises Governance Act empowers the minister of finance and public enterprises to direct the board of directors of Meatco to retract its decision not to renew the CEO’s contract. Additionally, the minister is not legally empowered to terminate the interim board’s term before its expiry.”Illegal directives continueIn the letter to Nghikembua last week, Hengari said Cabinet directed business continuity and implementation of the turnaround strategy at Meatco “with Mr Mwilima Mushokabanji as chief executive officer”.“The turnaround strategy was funded by government. However, the continuity of the CEO was never fulfilled by the board. This breach needs to be discussed and rectified,” Hengari stated.He added: “We understand there is currently ongoing recruitment of a new CEO of Meatco. I hereby strongly advise you to cease from recruiting a new CEO until we have concluded our consultations with your board.”

Cabinet ignores AG advice in Meatco CEO saga

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Namibian Sun 2025-05-01

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Cabinet ignores AG advice in Meatco CEO saga

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Namibian Sun 2025-05-01

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