Hengari halts Meatco CEO search, orders Mushokabanji’s return
Agriculture minister Mac Hengari has instructed Meatco to suspend its recruitment process for a new chief executive officer and has controversially directed the board to reinstate former CEO Mwilima Mushokabanji, citing a breach of a prior Cabinet directive.
In a letter dated Monday and addressed to Meatco board chairperson Sakaria Nghikembua, Hengari confirmed an earlier Namibian Sun report that Cabinet had resolved to return Mushokabanji to the helm of the state-owned meat corporation.
The board had opted not to renew Mushokabanji’s five-year contract when it expired in January.
The minister, who was appointed to the agriculture portfolio last month, also called for an urgent meeting with the Meatco board.
The meeting is set to include finance minister Ericah Shafudah, attorney general Festus Mbandeka, and justice and labour relations minister Wise Immanuel.
In the letter to Nghikembua, 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.”
Financial management
Mushokabanji’s potential reinstatement has sparked division both within Cabinet and across the public enterprises sector. During his tenure, Meatco recorded several financial losses, including a N$258 million operational loss reported in its group performance for the year-to-date period beginning January 2024. Government invested approximately N$700 million into the company between 2021 and 2023.
Sources indicate that when Cabinet approved Meatco’s new board of directors, the endorsement came with the condition that Mushokabanji be reinstated. However, after conducting its own internal evaluation, the newly appointed board opted instead to advertise the CEO position.
Governance protocols
Former finance minister Ipumbu Shiimi is understood to have previously raised objections, expressing concern over what his ministry perceived as Cabinet’s overreach and disregard for standard governance protocols.
The Public Enterprises Governance Act of 2019 requires that while Cabinet must approve CEO appointments at state-owned enterprises, those appointments must originate from the board of directors, appointed by the relevant line minister. The Act does not empower Cabinet to unilaterally reappoint executives without a resolution from the board.
A Cabinet insider told Namibian Sun that the matter was added abruptly to the agenda during a Cabinet meeting last week Tuesday, reportedly at the recommendation of the Cabinet secretariat. The secretariat is overseen by secretary to Cabinet George Simataa, who is said to be a central figure in the unfolding controversy.
Contacted for comment yesterday, Nghikembua said: “The board cannot comment on the matter at the moment as we await to engage the respective ministers tasked with this matter by Cabinet, at their earliest availability.”
In a letter dated Monday and addressed to Meatco board chairperson Sakaria Nghikembua, Hengari confirmed an earlier Namibian Sun report that Cabinet had resolved to return Mushokabanji to the helm of the state-owned meat corporation.
The board had opted not to renew Mushokabanji’s five-year contract when it expired in January.
The minister, who was appointed to the agriculture portfolio last month, also called for an urgent meeting with the Meatco board.
The meeting is set to include finance minister Ericah Shafudah, attorney general Festus Mbandeka, and justice and labour relations minister Wise Immanuel.
In the letter to Nghikembua, 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.”
Financial management
Mushokabanji’s potential reinstatement has sparked division both within Cabinet and across the public enterprises sector. During his tenure, Meatco recorded several financial losses, including a N$258 million operational loss reported in its group performance for the year-to-date period beginning January 2024. Government invested approximately N$700 million into the company between 2021 and 2023.
Sources indicate that when Cabinet approved Meatco’s new board of directors, the endorsement came with the condition that Mushokabanji be reinstated. However, after conducting its own internal evaluation, the newly appointed board opted instead to advertise the CEO position.
Governance protocols
Former finance minister Ipumbu Shiimi is understood to have previously raised objections, expressing concern over what his ministry perceived as Cabinet’s overreach and disregard for standard governance protocols.
The Public Enterprises Governance Act of 2019 requires that while Cabinet must approve CEO appointments at state-owned enterprises, those appointments must originate from the board of directors, appointed by the relevant line minister. The Act does not empower Cabinet to unilaterally reappoint executives without a resolution from the board.
A Cabinet insider told Namibian Sun that the matter was added abruptly to the agenda during a Cabinet meeting last week Tuesday, reportedly at the recommendation of the Cabinet secretariat. The secretariat is overseen by secretary to Cabinet George Simataa, who is said to be a central figure in the unfolding controversy.
Contacted for comment yesterday, Nghikembua said: “The board cannot comment on the matter at the moment as we await to engage the respective ministers tasked with this matter by Cabinet, at their earliest availability.”
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