Erongo RED CEO wants job back

Board says it acted within mandate
Fessor Mbango has dragged the regional electricity distributor to court over the manner in which he was let go.
Former Erongo RED head Fessor Mbango is fighting tooth and nail in the courts in a bid to interdict the board’s decision not to renew his contract.

The contract – worth a cool N$164 000 a month - ended last month.

Mbango leaves amid an alleged spat with the company’s board, which he dragged to court over alleged unfair labour practice.

He claims that since he was not notified six months before his term lapsed that his contract will not be renewed, it effectively meant “the employment contract is deemed to have been renewed on the same terms”.

This is despite his employment contract, seen by Namibian Sun, stating that the board should notify him six months before his contract lapses if there are plans to renew it.

The board resolved in October 2021 not to renew Mbango’s contract.

The former CEO wanted to stay on in his role. In a letter addressed to the board in January 2022 titled ‘Request for confirmation of employment contract renewal’, he asked the board to deliberate and consider renewing his employment contract.

He said, together with his team, he achieved the key performance indicators as set out by the board in its strategic plan despite challenges, especially during the pandemic.

“It is on this strength that if I am granted more time in this role, I will continue steering Erongo RED to greater heights,” he said.

New broom

The board, however, instead opted to advertise the position and this week announced Immanuel Hanabeb as the new CEO.

Hanabeb is well travelled in the parastatal space, having worked at public entities such as Namport, the Roads Contractor Company and Roads Authority.

When approached for comment, Erongo RED board chairperson Zoe Nambahu this week said the board acted within its mandate.

She added that the decision to advertise the position was to find the most suitable candidate.

“The board deemed it necessary to advertise the position for any suitable candidate, including Mr Mbango to apply. In the event Mr Mbango was found to be the best candidate, he would have been reappointed. He was not barred from applying if he wanted to,” she said.

Asked why the board went ahead and appointed Mbango’s successor despite the matter being in court, Nambahu responded: “The court has not pronounced itself and that there is nothing in law that precludes the company from executing the process”.

Stand-off

Mbango, according to Erongo RED insiders, was invited to participate in the recruitment process but did not do so.

The situation went as far as mines minister Tom Alweendo, who was forced to intervene in the matter. Last month Alweendo enquired about the stand-off between the two parties.

In a response letter to Alweendo earlier this month, Nambahu wrote that prior to conducting interviews, the board sought advice on whether to proceed considering that two directors declined to participate in the interview process.

“The legal opinion provided by [law firms] ENS Africa and Advocate [Tuhafeni] Muhongo confirmed that the interview process may continue, and it is on that basis that the recruitment process was finalised,” she said.

She added: “Although there are dissenting views, which are respected, it is the view of majority of the board that a due process was followed, and it was on that basis that the recruitment process was finalised”.

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Namibian Sun 2024-05-15

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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 383.99/OZ UP +1.19% | Copper US$ 4.87/lb DOWN -0.0017 | Zinc US$ 2 982.80/T DOWN -0.29% | Brent Crude Oil US$ 82.82/BBP DOWN -0.0042 | Platinum US$ 1 058.83/OZ UP +1.44%