NamPower board feels ‘bullied’

Cabinet - through finance minister Ipumbu Shiimi - has been accused of bullying NamPower to discontinue the suspension of electricity and to “never” again suspend the supply of utilities to various defaulting local authorities as a means to expedite revenue collection.

NamPower, which is owed over N$1 billion in unpaid power bills, had initially ignored a Cabinet directive from Shiimi not to interrupt the electricity supply of defaulting customers, and had gone ahead last Monday.

At the time, NamPower managing director Simson Haulofu said the power company’s board decided to proceed with its disconnection scheme as outlined in its debt-collection plan.

“After due consideration, the board of directors unanimously decided to exercise its fiduciary responsibilities towards the company and to protect the interest of the company and its stakeholders,” Haulofu said.

However, on Monday, NamPower made a U-turn on its decision and announced to the public that it had resolved to put its plan to disconnect defaulting customers in abeyance until the end of August.

Interventional measures

Haulofu said the board of directors and management engaged in a consultative meeting with Shiimi on 8 June.

At the meeting, Shiimi articulated government's interventional measures aimed at assisting NamPower to collect the money it is owed by its customers, he said.

“The government's programme to implement needed measures has been put in motion and will run until end August.

“The minister will furthermore make necessary recommendations to government before the end of August on the matter,” Haulofu said, adding that disconnections will not occur until the end of August.

Meanwhile, NamPower has once again called on defaulting customers to pay their dues to enable the company to continue delivering on its mandate.

Doing what’s best

The decision to comply with the Cabinet directive has not been met with open arms, with some members of the board saying Shiimi’s instructions are tantamount to interference on the part of government in the running of commercial public enterprises.

“Everyone knows that failure to collect money due to NamPower would have unintended consequences. Is that what government wants?

“The board was simply trying to do what is in the best interest of the corporation to avoid incidents such as Air Namibia where NamPower finds itself in a position where it is unable to continue with operations,” one of the board members said.

Another questioned: “Has Cabinet considered that if the outstanding debts are not settled, NamPower risks facing the challenges neighbouring countries Zimbabwe and South Africa are currently experiencing?”

The member further fumed that Cabinet might as well run the corporation if it cannot respect decisions made by the board to ensure NamPower’s sustainability.

“We are independent directors and the decisions we make are for the benefit of the corporation and the country at large. They might as well run NamPower. He [Shiimi] spoke in parliament assuring the nation that there will be no power cuts before even engaging and coming to an agreement with NamPower.”

Ask Wilson

Shiimi ignored questions regarding the bullying allegations and said the public would be informed of the outcome once government has engaged NamPower and water utility NamWater.

“Once all stakeholders have agreed on the way forward, the public will be informed,” he said, adding that - in future - questions to his ministry should be forwarded to public relations officer Wilson Shikoto, who is in a better position to coordinate media queries.

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