Former Erongo RED boss loses reinstatement case

The High Court has dismissed former Erongo RED CEO Fessor Mbango’s attempts to force the regional electricity distributor to renew his contract.A fortnight ago, Judge Herman Oosthuizen validated Erongo RED’s decision when he dismissed Mbango’s court application with costs."Contractually, the respondent [Erongo RED] has no obligation to give notice to the applicant that his contract will not be renewed; furthermore creates no obligation to supply the applicant with reasons why his fixed-term contract will not be renewed," he said.The contract, which ended in April, was worth a cool N$164 000 a month. The board resolved in October 2021 not to renew it.Mbango dragged Erongo RED to court over alleged unfair labour practices, claiming he was not notified six months before his term lapsed that his contract would not be renewed, and therefore it effectively meant “the employment contract is deemed to have been renewed on the same terms”.However, according to the documentation, the board is only obliged to notify him six months before his contract lapses if there are plans to renew it.Clearly outlined"The terms of the contract in Clause 3 are outlined clearly, hence [Erongo RED] had the sole discretion to offer to renew the employment contact with the applicant. If the contract of employment is not renewed within six months before its expiry, the contract would automatically lapse," Oosthuizen’s judgment read.According to the judge, Mbango’s application did not meet the requirements of section 117 of the Labour Court Act of 2007, but was heard in terms of section 86(15).The company’s board in May announced Immanuel Hanabeb as the new CEO.Mbango could not be reached for comment on the matter.

Former Erongo RED boss loses reinstatement case

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Namibian Sun 2025-09-18

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Former Erongo RED boss loses reinstatement case

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Namibian Sun 2025-09-18

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