NIP stuck with ex-CEO Tjombonde’s N$1.1m vehicle

A N$1.1 million Mercedes-Benz station wagon that was purchased for the former CEO of the Namibia Institute of Pathology (NIP) under a controversial executive vehicle scheme remains parked at the institution months after her departure.

The 2024 model Mercedes-Benz is understood to be linked to the former CEO’s contractual package and is not automatically transferable to a successor, as the incoming chief executive might want a different vehicle preference and specifications tied to their employment arrangements.

Senior government officials told Namibian Sun the Mercedes-Benz that was allocated to former CEO Kapena Tjombonde is still parked at the NIP premises, remains registered in the organisation’s name, and continues to be insured by the state-owned enterprise.

Two years ago, NIP defended spending N$5.3 million on an executive vehicle scheme, saying the vehicles formed part of contractual employment benefits designed to attract and retain executives.

The development has reignited debate over the costly 2023 car purchases, under which five senior executives were allocated vehicles as part of their employment packages.

“The previous CEO’s vehicle is still parked at NIP, which confirms that the decision to procure vehicles registered under NIP may have been wrong,” an official, who preferred to remain anonymous, told Namibian Sun.

The official alleged that while discussions may have taken place regarding the former CEO taking over the vehicle, ownership has not been formally transferred.

“If it has to be disposed of, it must be done according to the Procurement Act, as it is still an asset of an SOE,” the individual explained.

The issue comes months after uncertainty surrounded Tjombonde’s tenure at NIP when her five-year contract reached its expiry date.

At the centre of the latest concerns is whether the vehicle remains part of NIP’s asset register and what process will be followed to dispose of or transfer ownership.

Company property

Questions have also been raised about the financial implications of retaining the vehicle, including ongoing insurance and maintenance costs while it stands idle.

NIP through its chief strategy and business development officer, Niita Evaristus, confirmed that the Mercedes-Benz remains its property and is in its possession.

However, the institution declined to respond to detailed questions sent by Namibian Sun last week.

“The vehicle in question belongs to NIP and is as such in the NIP's possession," Evaristus said.

"Regarding the former CEO’s interest in the vehicle, that is a contractual matter between NIP and the former CEO. The company will not act outside of its contractual obligations,” Evaristus added.

The institution also refused to provide details on whether the vehicle remains on its asset register, its current book value, and the costs associated with insurance and maintenance.

Questions regarding whether an offer was made for the former CEO to take ownership of the vehicle and what disposal process would be followed under procurement regulations also went unanswered.

Following Tjombonde’s exit in January this year, Vincent Nowaseb was appointed as acting chief executive officer.

Nowaseb’s contract as chief operations officer ends in July.

According to NIP policies, only a substantive chief executive officer is mandated to renew executive contracts.

Scheme outlined

NIP further declined to clarify arrangements surrounding executive contract renewals and decision-making authority in the absence of a substantive chief executive officer.

“This matter falls within the ambit of the board. As appointing authority, the board will continue to exercise its duties in accordance with the relevant governance procedures to ensure that the NIP continues to carry out its indispensable mandate as a critical pillar in the healthcare industry,” Evaristus said.

Questions sent to Tjombonde by Namibian Sun on Thursday last week went unanswered.

Apart from Tjombonde, the executives who benefited from the vehicle scheme are Oaitse van Staden (chief human capital officer), Nabot Uushona (chief technical officer), Nowaseb, and Scholastika Mwetulundila (chief financial officer).

Documents show that NIP paid N$1.1 million for Tjombonde’s Mercedes-Benz. Uushona received a Ford vehicle worth N$1 million, while Nowaseb was allocated a Nissan valued at N$987 034.

NIP further purchased a Toyota Fortuner for Van Staden worth N$1.1 million and a Volkswagen Amarok for Mwetulundila worth N$1 million.

Documents indicate that these payments were made on 17 and 28 November 2023.

NIP was established in 2000 to provide medical laboratory services in Namibia.