Nida parts ways with CEO after payout
The Namibia Industrial Development Agency (Nida) board of directors has agreed to pay out its suspended CEO Mihe Gaomab II for about N$600 000 to end a marriage that never really got off the ground.
Board chairperson Sebby Kankondi confirmed that Gaomab has left the company, but would not be drawn into the granular details of the settlement agreement.
“Nida, as a public entity, shouldn’t have a problem in availing the full details of what you or the public need to know, but I am sure - just like me and you - Mr Gaomab wants his privacy. Therefore, it is better if you contact him for the details. I cannot bear the burden of violation of confidentiality,” he told Namibian Sun yesterday.
Gaomab did not respond to a request for comment.
He was suspended in January for alleged poor performance after his probation was extended three times.
At the core of the board’s displeasure is Gaomab’s alleged failure to develop an integrated business plan and ensure it was ready for approval. He was also tasked with securing a N$100 million loan, for which government was to provide a guarantee.
Gaomab was further accused of failing to properly transfer assets and staff of the Namibia Development Corporation (NDC) and the Offshore Development Company (ODC) to Nida. NDC and ODC were incorporated into Nida after Cabinet approved the merger in 2015.
Financial challenges
Making matters worse is Nida’s acute financial challenges, underscored by its failure to pay employee medical aid contributions.
A year ago, Nida owed the Namibia Health Plan (NHP) medical aid fund about N$700 000.
Gaomab, who also served as CEO of the Namibia Competition Commission, was appointed as Nida CEO in April 2021. As of October 2022, he was on his third probation extension, having failed to impress during the first two.
The first six-month probation period ended in October 2021, with the board allegedly unsatisfied with his performance.
Two more probationary extensions, the latest ending in October 2022, were then agreed to.
Nida sources told Namibian Sun that Gaomab’s lawyers proposed that the company fully pay out the three remaining years of his contract, but the board rejected the proposal.
Breach of confidentiality
The parties then agreed to a payout equal to six months of his resignation notice.
“For a Tier 2 company, the payment for six months’ notice would be in the region of N$600 000,” one official said.
It is alleged that the board was unhappy that Gaomab had secretly recorded some of its meetings, and this was going to be part of the disciplinary hearing against him.
“It’s a breach of confidentiality, so there was a chance he was going to get fired. So, he was proactive in rather proposing a payout, which the board agreed to because the suspension was becoming too long and people just want to move on and restore normalcy at the company,” another official said.
Board chairperson Sebby Kankondi confirmed that Gaomab has left the company, but would not be drawn into the granular details of the settlement agreement.
“Nida, as a public entity, shouldn’t have a problem in availing the full details of what you or the public need to know, but I am sure - just like me and you - Mr Gaomab wants his privacy. Therefore, it is better if you contact him for the details. I cannot bear the burden of violation of confidentiality,” he told Namibian Sun yesterday.
Gaomab did not respond to a request for comment.
He was suspended in January for alleged poor performance after his probation was extended three times.
At the core of the board’s displeasure is Gaomab’s alleged failure to develop an integrated business plan and ensure it was ready for approval. He was also tasked with securing a N$100 million loan, for which government was to provide a guarantee.
Gaomab was further accused of failing to properly transfer assets and staff of the Namibia Development Corporation (NDC) and the Offshore Development Company (ODC) to Nida. NDC and ODC were incorporated into Nida after Cabinet approved the merger in 2015.
Financial challenges
Making matters worse is Nida’s acute financial challenges, underscored by its failure to pay employee medical aid contributions.
A year ago, Nida owed the Namibia Health Plan (NHP) medical aid fund about N$700 000.
Gaomab, who also served as CEO of the Namibia Competition Commission, was appointed as Nida CEO in April 2021. As of October 2022, he was on his third probation extension, having failed to impress during the first two.
The first six-month probation period ended in October 2021, with the board allegedly unsatisfied with his performance.
Two more probationary extensions, the latest ending in October 2022, were then agreed to.
Nida sources told Namibian Sun that Gaomab’s lawyers proposed that the company fully pay out the three remaining years of his contract, but the board rejected the proposal.
Breach of confidentiality
The parties then agreed to a payout equal to six months of his resignation notice.
“For a Tier 2 company, the payment for six months’ notice would be in the region of N$600 000,” one official said.
It is alleged that the board was unhappy that Gaomab had secretly recorded some of its meetings, and this was going to be part of the disciplinary hearing against him.
“It’s a breach of confidentiality, so there was a chance he was going to get fired. So, he was proactive in rather proposing a payout, which the board agreed to because the suspension was becoming too long and people just want to move on and restore normalcy at the company,” another official said.
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