Finance ministry approves NAB's Tier 2 reclassification

The finance ministry last year endorsed the reclassification of the Namibian Agronomic Board (NAB) from a Tier 1 non-commercial public enterprise to a Tier 2 non-commercial regulatory enterprise, driving up executive salaries and other perks. The ministry backed its decision by stating that the board's mandate, regulatory functions and funding model are better suited to the higher regulatory classification.The ministry's position is contained in a letter dated 13 January 2025, signed by the former executive director Titus Ndove and addressed to NAB chief executive officer Dr Fidelis Mwazi. The ministry's spokesperson, Wilson Shikoto, confirmed the authenticity of the letter last week.In the correspondence, Ndove acknowledged NAB's application and said the ministry supported the request after careful consideration."Your esteemed office has requested the reclassification of the Namibian Agronomic Board (NAB) from a Tier 1 non-commercial public enterprise to a Tier 2 non-commercial regulatory enterprise. After careful consideration, the ministry supports this application for reclassification," he wrote.The ministry at the time said its support was based on four key considerations. It found that NAB's mandate, functions and operations are more closely aligned with those of a Tier 2 regulatory enterprise and that the change would better reflect the board's role while aligning it with comparable regulatory institutions.Ndove also pointed to the complexity of NAB's regulatory responsibilities and its sustainable funding model, which is largely financed through statutory levies.However, the reclassification has also attracted internal scrutiny.A source, who requested anonymity, alleged that since the board's reclassification in January 2025, the CEO and five executives have been remunerated according to the Tier 2 salary structure, while the remainder of the staff has allegedly continued to be paid under the Tier 1 structure since April 2025.The source alleged further irregularities, which could not be verified.NAB acknowledged receipt of questions sent last week but had not responded by the time of publication.Audit findingsNAB was initially classified as a Tier 1 public enterprise in 2013 through amendments to Government Notice No. 174 of 2010, published in Government Gazette No. 5213 and signed by the late President Hage Geingob.Established in 1985 under the Agronomic Industry Act of 1992, NAB is a statutory body responsible for regulating the production, processing, storage and marketing of controlled agronomic and horticultural products. Its 13-member board represents stakeholders across Namibia's agronomy and horticulture sectors.The finance ministry's endorsement comes against the backdrop of governance concerns previously raised by auditor general Junias Kandjeke.In an audit covering the financial years ending 31 March 2022 and 31 March 2023, Kandjeke found that NAB had failed to comply with provisions of its memorandum of agreement.Among the findings was that the board terminated the services of its levy collection agent, the Agro-Marketing and Trade Agency (AMTA), on 31 March 2020 without the approval of the agriculture minister, contrary to Section 10(1)(g) of the Agronomic Industry Act.The audit further found that NAB began collecting levies and fees directly during February and March 2020 and continued doing so throughout the 2020/21 financial year, despite AMTA having been appointed in June 2014 to perform those functions on the board's behalf.The dispute eventually escalated into litigation, with NAB suing AMTA for nearly N$30 million in disputed levy collections in a case that also involved the agriculture minister.Kandjeke also questioned the board's remuneration practices, finding that despite its Tier 1 classification, NAB employed three general managers whose remuneration exceeded the gazetted salary bands.According to the auditor general, two general managers each received annual employment packages of about N$900 000, while the general manager responsible for finance, information and communication technology, human resources and administration earned an annual package of approximately N$1.4 million.The audit noted that the remuneration ceiling for Tier 1 entities was N$722 423 at the 90th percentile, raising concerns about NAB's compliance with government remuneration directives.nikanor@nmh-hub.com.na

Finance ministry approves NAB's Tier 2 reclassification

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Namibian Sun 2026-07-29

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Finance ministry approves NAB's Tier 2 reclassification

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Namibian Sun 2026-07-29

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